Consumer-focused private equity firm L Catterton announced today the launch of a new impact investing platform, aimed at investing in and growing mission-driven consumer companies seeking to make the economy cleaner, healthier, and more equitable.
L Catterton stated that the new Impact Fund will aim deliver both attractive risk-adjusted returns and significant progress against some of the world’s most pressing social and environmental challenges. The fund will target businesses that address challenges including mitigating climate change, reducing waste, preserving nature, eliminating health, wellness and nutrition, and creating a more inclusive economy.
Scott Dahnke, Global Co-CEO of L Catterton, said:
“As consumer-focused investors above all else, we have seen a revolution in consumer demand based on sustainability and impact. This is hitting a tipping point as younger generations lead a structural, long-term shift towards brands anchored on these values. With our distinctive insights and operations-centric approach to value creation, we are poised to identify the most attractive investment opportunities amidst this shift and partner with strong companies in advantaged categories to accelerate growth.“
The firm also announced the appointment of Tehmina Haider and Michael O’Leary as Partners to lead the new strategy.
Haider, a former senior investor in L Catterton’s Growth Fund, re-joins the firm from Harry’s, Inc. where she served as the company’s Chief Growth Officer responsible for acquiring new brands and overseeing post-launch operations.
“Mission driven brands and businesses are revolutionizing the consumer economy as they increasingly attract disproportionate interest from consumers and loyalty from employees. The launch of L Catterton Impact creates an opportunity to harness L Catterton’s distinctive insights and expertise to support this next generation of brands to achieve both outsized growth and meaningful positive impact to the planet.“
O’Leary joined L Catterton in March, after most recently serving as Managing Director at sustainability-focused activist Engine No. 1. He is also co-author of the book ‘Accountable: The Rise of of Citizen Capitalism’, profiling the challenges and opportunities of impact investing.
“L Catterton has seen how impact can drive economics at consumer companies today. We now have the opportunity to make significant progress against some of our biggest social and environmental challenges by scaling this next generation of companies. The future of the consumer sector is increasingly sustainable, inclusive, and equitable, and we’re building L Catterton Impact to help lead that transformation.“
Michael Chu, Global Co-CEO of L Catterton, added:
“We are confident that now is the right time to launch a dedicated impact fund platform that will further enable us to support mission-driven entrepreneurs and companies where impact is a core driver of the brand. Tehmina and Michael bring deep experience in consumer and impact investing, and we look forward to leveraging their leadership as we establish this platform.“