Ex-L Catterton Asia Chief’s $500 Million Fund Wins Saudi Backing

(Bloomberg) -- Turmeric Capital, an investment firm led by former L Catterton Asia head Ravi Thakran, has secured backing from Saudi Arabia for a $500 million private equity fund, according to people familiar with the matter.

Jada, which was given $1 billion by Saudi Arabia's wealth fund to seed venture and private equity firms investing in the country, will commit about $100 million, the people said, asking not to be identified as the information is private.

Known as the New Consumer Growth Fund, it's looking to deploy capital “in vibrant regional businesses across the developing underfunded markets” in the Middle East, North Africa and South Asia, according to a presentation seen by Bloomberg.

The document dated January 2022 said Turmeric is establishing the fund in partnership with LVMH-backed L Catterton.

Singapore-based Turmeric and Jada declined to comment.

L Catterton said the extent of its “involvement was to make introductions and be a reference for a former employee at the beginning of fundraising for this Gulf-centric fund in early 2020,” according to a statement.

“We assisted him with startup costs, under the agreement that he would reimburse us,” it said in response to a Bloomberg request for a comment. “Otherwise, employees of L Catterton have a de minimis interest in this fund.”

Private Markets

The promise of higher returns is prompting the $10 trillion wealth fund industry to shift more capital into private markets. And as the $500 billion PIF takes on a bigger role in supporting the Saudi economy, it's also becoming more important as a source of capital for fund managers in the Middle East.

Chaired by the Saudi crown prince, the PIF last year agreed to be an anchor investor in a $300 million private credit fund managed by NBK Capital Partners and also made a pledge of as much as $160 million to a Middle East infrastructure fund being established by Aberdeen Standard Investments and Investcorp.

Thakran in 2009 founded L Capital Asia, the Asian private equity venture of LVMH, which merged with Catterton to form L Catterton in 2016. L Catterton invested in Dubai-based luxury gourmet dates firm Bateel in 2015.

The new fund's focus will be on growth private equity investments typically ranging from $10 million to $50 million, “guiding the business from Series C/D on the path to exit with an investment horizon of 4-6 years,” according to the document seen by Bloomberg.