US private-equity firm L Catterton invests in Stenders as China’s consumer trends shift
Investment firm says now is a good time to lean into mainland China’s consumer sector amid lower competition and valuations
The acquisition through L Catterton’s Asia fund platform marks the consumer sector-focused firm’s fourth investment in China in the past 12 months, with deployment totalling US$200 million. The firm said it was able to identify companies with “favourable risk and reward profiles” despite the challenges in the world’s second-largest economy.
“Bleak headline numbers about China’s consumer sector oversimplify the story and do not show the whole picture,” said Scott Chen, Asia managing partner at L Catterton. “We believe the present is a good time for us to lean in as the sector is at or near several troughs; these include consumer confidence, company valuations, and competition for deals.
“Challenging times like this can also reveal which companies have truly differentiated offerings, strong brands and loyal customers.”
Backed by luxury-goods conglomerate LVMH, L Catterton has US$34 billion of assets under management and counts footwear brand Birkenstock and restaurant chain Crystal Jade in its Asia portfolio, according to its website.
Stenders captures consumer trends that involve a heightened focus on well-being and premium and natural products, L Catterton said on Tuesday. The size of the investment was not disclosed.
