Redalpine to close venture fund by end of Q2

The fund is open to institutional and qualified private investors, and has a hard-cap of CHF 100m and a minimum investment size of CHF 1m. It will run an eight-year investment period with a maximum extension of two years.

Redalpine general partners have made a commitment of 5% to the fund and will take a 2.2% management fee (falling to 1.5% in the extension period). Carried interest is 20% after a 10% hurdle.

RAC III will be managed from Switzerland but domiciled in Luxembourg. Capital is expected to be called in five 20% instalments over four years.

Predecessor funds RAC I and II reported IRRs of 22% and 47% respectively. RAC II held a final close on CHF 80m in July 2013, according to unquote" data.

Investors have not been disclosed, but Redalpine has said it sees European VC investments as an underexploited opportunity for US investors.

RAC III will focus on European technology companies with a specific focus on the DACH region. Within the technology sector, financial technology, health technology, digital marketplaces, media and travel technology are highlighted as areas of specific interest.

The VC has identified a sweet spot for investments of CHF 1-5m, where it sees both valuations and competition as relatively low. It will make five to eight investments per year including co-investments with other VC firms, as it has in the past with Point Nine, Earlybird, High-Tech Gründerfonds and others.

Around 70% of returns are expected to come from the highest performing companies with the moderate performers making up the other 30%.

The fund has already made five investments, including digital staffing platform Zenjob, property management sales software Home, health technology company Versantis, digital tax assistant Taxfix and SME financing platform Black Bill.

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• Topics
• Funds
• Venture
• DACH
• Technology
• European Investment Fund
• Venture