Home Investment Process

Investment Process

investmentProcess_smCompanies 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.

 

Catterton uses its research and consumer insights to analyze the “root drivers” of consumer behavior. These root drivers are then used to help identify and prioritize the investment trends that are then screened against the key industry Verticals, to determine the targeted sub-segments of each Vertical that we consider to be the most attractive for investment.

Additionally, each year we formally update our fact-based insights regarding key consumer trends. From a fairly broad list of consumer trends, we prioritize the most significant trends based on size and sustainability, amongst other factors. This approach utilizes a proprietary process which incorporates key demographic, psychographic, socioeconomic, and cultural root drivers that shape consumer behavior and influence purchase decisions. The overlay of this analysis on the investment trends followed by Catterton allows the firm to prioritize attractive trends for investment and to identify categories where Vertical sub-segment growth is supported by strong underlying and sustainable consumer trends. The end result of this disciplined and analytic process is the identification of specific companies within the targeted sub-segments for potential investment. We then proactively reach out to the owners and executives of these identified companies, often cultivating trust-based relationships over a number of years.