US private investment firm L Catterton is planning to deploy around JPY50bn ($313m) over the next three years across five Japanese consumer businesses, according to a report by Bloomberg citing comments from Japan head Toshitaka Shimizu.
The firm, backed by LVMH Moet Hennessy Louis Vuitton SE, intends to focus on sectors where it has deep expertise, including cosmetics, food, pet care, and restaurants. L Catterton has structured its deal capacity to combine equity and debt financing for maximum flexibility.
Shimizu said the firm is targeting primarily private and family-owned businesses facing succession challenges, as well as younger companies seeking expansion capital. “When we talk with founders, we don’t come across as a financial investor but as more of a consumer industry specialist,” he explained, adding that competing purely on valuation is often insufficient to win deals.
Japan’s private equity market has been resilient despite a slowdown elsewhere in Asia. While overall Asian PE deal value fell 14% last year, Japanese transactions surged 81% to $33.4bn, according to Deloitte.
Since establishing its Japan offices in 2017, L Catterton has invested in nine companies, including a furniture wholesaler, Kapital, and the world’s largest Kobe beef restaurant chain. The firm also manages approximately ¥280 billion in Japanese real estate through local partnerships.
One of L Catterton’s recent targets is HUGE. Despite labor shortages in the sector, L Catterton cited HUGE’s low staff turnover and loyal customer base—roughly a third of revenue comes from repeat diners—as key attractions. HUGE had considered an IPO but opted for private expansion, aiming to double annual sales to JPY30bn and enter markets including Hong Kong, Singapore, and Southeast Asia, with a potential IPO targeted for 2030, according to founder Yoshihiro Shinkawa.
