From L Catterton to General Atlantic: Latin American fashion seduces foreign capital PREMIUM FASHIONS PREMIUM FASHIONS

Latin American fashion seduces foreign investors. From L Catterton to General Atlantic, in recent months, companies in the sector have been shaken with new corporate operations. The uncertainty of mature markets has made international investment funds look optimistically at Latin America.

The first big news came in February when the investment arm of LVMH announced its entry into the capital of Argentina's Rapsodia, with the aim of promoting the company worldwide.

Rapsodia currently operates only in the Latin American market and is the Argentine company with the greatest potential abroad. But who is L Catterton? In January 2016, L Capital, the investment arm of the luxury giant LVMH, joined the US private equity firm Catterton, with the intention of becoming one of the leaders in terms of investment in consumer goods companies.

L Catterton entered Argentinian Rapsodia in February and in April merged Maaji with Seafolly

L Catterton is 40% owned by LVMH and the Arnault group. After the operation, the group merged all of Catterton's private equity activities in the United States and Latin America, with those of L Capital in Europe and Asia.

L Catterton is currently headquartered in New York, as well as offices in Paris, Luxembourg and Singapore. The company's Latin American business is managed from US facilities.

The entry into the capital of Rapsodia meant the first operations of L Catterton in Argentina. However, the group had already invested in Latin American companies such as the Brazilian Grupo St Marche (food) and Espacolaser (aesthetics and beauty), as well as the health and fitness chain Bodytech.

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Until last February, the fund had invested 14,000 million dollars and around 70 million dollars allocated to companies in Latin America. Other fashion companies in which L Catterton has a stake are Pepe Jeans, El Ganso, Ba&sh and Hanna Anderson, among others.

L Catterton has invested in other fashion companies such as the Spanish Pepe Jeans or El Ganso

Last April, L Catterton looked again at the Latin American market. The company announced the merger between the Colombian Maaji and the Australian Seafolly, both specialized in swimwear. The investment fund now controls both companies, although their founders remain shareholders.

LVMH's investment arm acquired Seafolly in December 2014. The Australian company, founded in 1975 by Peter and Yvonne Halas, operates in 41 countries through 31 owned stores.

Last week another investment group opted for a Latin American company. The American General Atlantic bought 38% of the Mexican Grupo Axo. In this case, the entry of the company was carried out after the departure of Alsea from the Mexican distributor, who joined the company in 2013.

Last Tuesday, Alsea, owner in Mexico of food chains such as Starbucks or Burger King, signed an agreement with General Atlantic to sell all of its minority stake to the US company. The amount exceeds 600 million Mexican pesos (32.3 million dollars) for a total of 38% of Grupo Axo.

Alsea sold its entire stake in Grupo Axo to the US company General Atlantic

Alsea acquired part of the Mexican company that distributes brands such as Tommy Hilfiger or Abercrombie, in 2013. What role will General Atlantic play in Grupo Axo? The fund confirmed that they feel "very optimistic" regarding the Mexican economy. The company, which has technology giants such as Snapchat or Airbnb in its portfolio, announced that it will strengthen the brands that Grupo Axo already has and plans to add new ones.

The entry of General Atlantic into the Mexican company also meant a change in its board of directors, since three of its executives (Luis Cervantes, Martín Escobari and Andrew Ferrer) joined the governing body of Grupo Axo.

General Atlantic is a company that provides capital and strategic support for the growth of companies. Founded in 1980, the group has experience partnering with brands like Airbnb, House of Anita Dongre, Snapchat, Tory Burch, Uber, and Zimmermann. The company has offices in New York, Amsterdam, Beijing, Greenwich, Hong Kong, London, Mexico City, Mumbai, Munich, Palo Alto, Sao Paulo, and Singapore.