L Capital Asia Invests in Marubi

Private equity fund takes minority stake in Chinese cosmetics maker.

SINGAPORE — L Capital Asia, the private equity fund backed by LVMH Moët Hennessy Louis Vuitton, has acquired a minority stake in China’s Marubi Holdings Group, which produces the Marubi line of cosmetics. This marks the fund’s first foray into the beauty industry.

This story first appeared in the July 16, 2013 issue of WWD.  Subscribe Today.

Financial details were not disclosed. According to Marubi, the Chinese company said it would work with L Capital Asia, now its second-largest shareholder, on areas such as marketing, packaging and research and development.

Ravi Thakran, L Capital Asia’s managing partner, said the fund admired Marubi’s steady growth in the “masstige” sector and had high hopes for the beauty company’s future prospects. Thakran had previously indicated that his fund was prepared to spend up to half of its existing capital on deals in China.

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Marubi is characterized as one of the four largest domestic cosmetics companies in Mainland China. It sells products ranging from whitening creams to eye gels. Most items are priced between 100 yuan, or $16.29, and 600 yuan, or $97.76.

Sun Huaiqing, Marubi’s chief executive officer, said Marubi’s ambition was to become a major cosmetics label capable of competing internationally, and that the deal with L Capital was an important step in that direction.

The Marubi transaction follows L Capital Asia’s acquisition of a minority stake in Australian bush wear manufacturer R.M. Williams earlier this year, which marked the last deal financed by L Capital Asia’s first fund, for which it had raised $640 million.

It has since raised a further $1 billion for a second fund.