The fund, called L Capital Asia, will buy minority stakes in promising companies engaged in retail, food and beverage, and beauty and wellness.
L Capital will not deal with French parent LVMH, the world's largest luxury goods firm, to avoid any perceptions of conflicts of interest, Asia managing partner Ravi Thakran said at a press conference in Singapore.
"We've defined in our constitution that we will never buy anything from LVMH nor will we sell to LVMH," said Thakran, who is also LVMH's group president for South and Southeast Asia and the Middle East.
"We do not want to be perceived at any point in time that we're shifting from the left pocket to the right pocket."
Thakran said the Asia fund has to-date invested about $90 million in three firms -- Singapore luxury timepiece retailer Sincere Watch, Singapore shoe label Charles & Keith, and Hong Kong-listed Emperor Watch and Jewellery.
The fund expects to invest $200 million this year, and will announce one Chinese and one Indian fashion company investment within the next 60 days, Thakran said.
L Capital Asia is the fourth fund by L Capital, whose best-known investments include Pepe Jeans, Gant and Princess Yachts.