- Consumer-focused fund has raised 20%-30% of its targeted USD 500mn
- Olympic gymnast-turned-sportswear CEO Li Ning returns as anchor LP
- LionRock buys global consumer lifestyle brands, supports Asian expansion
Hong Kong-headquartered LionRock Capital has reached a first close of approximately USD100m on its third consumer-focused fund.
Karen Lai, a managing director at the firm, said the first close came in May at 20%-30% ofthe target. Lion Rock is looking to raise as much as USD 500m in total. The fund has a 10-year lifespan with a five-year investment period. Ticket sizes will be inthe USD 100m-USD 200m range, focusing on mid-market control deals. Lion Rock told Mergermarket earlier this year that it expected to deploy USD 500m in co-investment alongside the fund.
Li Ning, a former Olympic gymnast and the founder of the Hong Kong-listed sportswearcompany that shares his name, is the anchor LP in Fund III. He is also non-executivechairman of the GP. Li was an anchor LP in the prior fund, which closed on USD 300m in2022.
LionRock, established by Daniel Kar Keung Tseung in 2011, has USD 800m in assets undermanagement. Its LPs are mainly family offices, institutional investors, and entrepreneursactive in the consumer sector from Asia, Europe, and the US. Operating out of offices in Hong Kong and Zürich, the firm targets global consumerlifestyle brands, particularly in Europe, North America, and Asia ex-China. The goal is to help these brands expand their presence in Greater China and Asia, leveraging LionRock’snetwork, relationships, and expertise. “We like brands that have good heritage and customer recognition in Greater China butonly have a small footprint here, so we can help them expand and grow in this part of theworld,” Lai said.
Fund III will consider investments in consumer sub-sectors such as apparel, footwear, andaccessories. It will also look at the health supplements space, notably vitamins and energydrinks. “People want to be healthier, so they’re spending more on these areas, especially withfavourable government policies promoting healthy living, fitness, and sports,” Lai added. Recent control deals include Haglöfs, a Nordic outdoor activities brand, which waspurchased from Japan-based Asics Corp in December 2023. LionRock is also known for itsacquisition and turnaround of British shoe brand Clarks in 2020. The business was sold to Viva China in 2023.
by Vivian Li, Mergermarket