U.S. private equity firm L Catterton is set to acquire a majority stake in Japanese financial advisory Financial Standard. The deal aims to meet rising demand for advising wealthy individuals amid industry shifts and higher operating costs.
The acquisition highlights L Catterton's strategic expansion into the Japanese market and its focus on the growing demand for wealth management services, particularly among affluent individuals.
U.S. private equity firm L Catterton is set to acquire a majority stake in Japanese financial advisory firm Financial Standard by October. The move is intended to address the growing demand for advising affluent individuals, a sector experiencing a reshuffle due to increasing operational expenses.
This acquisition is part of L Catterton's broader strategy to bolster its presence in Japan's active private equity market. The firm plans to invest around $313 million across five Japanese consumer businesses over the next three years. These investments will focus on sectors where L Catterton possesses significant expertise, such as cosmetics, food, pet care, and restaurants. The firm typically targets private, family-run companies facing succession issues or those seeking capital for expansion.
Japan has become a prominent private equity market in Asia, with deal values rising significantly last year. L Catterton, formed in 2016, manages approximately $40 billion globally and has been active in Japan since establishing its office in 2017, having invested in nine companies to date. Its portfolio includes diverse businesses like furniture distributors, fashion brands, and restaurant operators.