Catterton Partners
investment process
Overview    Investment Focus    Investment Process    Value Creation

Catterton Partners’ strategic and operating focus clearly defines our proactive investment philosophy and approach. Each year, we update our investment perspective on each of our targeted verticals through an extensive and proprietary process. Included in this process is a detailed evaluation of each targeted vertical and its many sub-segments. Each of these sub-segments is measured against a set of proprietary quantitative and qualitative screens, including an explicit evaluation of consumer trends, resulting in a proactive and prioritized list of industry sub-segments and categories that we believe are attractive for private equity investment. From this set of targeted categories, we identify the most attractive companies in which to invest and then contact these companies directly. Similarly, the results of this analysis are used to support our evaluation of various reactive investment opportunities, which are often brought to us through our extensive network of industry-related contacts. As part of our investment review, we rigorously evaluate a number of factors, including a potential investment’s business proposition; the underlying consumer demand fundamentals; brand positioning and strength; growth potential, including relative market share and channel penetration; industry and company economics; and the depth and quality of the management team.

COMPANIES THAT MEET OUR INVESTMENT CRITERIA SHARE A NUMBER OF COMMON FEATURES:

  • A concept with substantial, identifiable consumer demand which can be effectively replicated in multiple markets;
  • A unique and leverageable brand asset or capability that differentiates the company from its competition;
  • Attractive business model economics, addressing a specific customer need and demonstrating the operational capabilities to achieve market leadership;
  • Strong management in place with a proven ability to execute a clearly defined strategic business plan;
  • A strong, focused and customer-oriented culture;
  • Significant growth or growth potential and an expansion strategy that is consistent with the company’s performance history;
  • A defensible and extendable position in a growing industry category.

As a result of our strategic focus, experience, and investment approach, Catterton Partners has developed a reputation as the "investor of choice" in its targeted industry and vertical segments.

Those companies in which we choose to invest have demonstrated fundamentally superior business models and substantial growth potential. Furthermore, when coupled with Catterton’s investment capital, expertise, and resources, these companies have the opportunity to create a significant and sustainable competitive advantage. This advantage often results in an investment achieving market leadership and providing superior economic returns to all participants.