Rocket Internet holds $1bn final close for maiden fund

The fund will target co-investments with its parent company, Rocket Internet, based on a 4:1 ratio. According to a statement, this ratio gives a combined direct-indirect 28% economic exposure for Rocket Internet.

The 2016-vintage fund targets growth capital injections in internet-focused businesses worldwide and is the first closed-ended vehicle launched by Rocket Internet. Goldman Sachs International acted as placement agent for the fund.

According to a source familiar with the situation, the fund charges no management fee and has an 8% hurdle rate. Above this minimum return, the GP operates a 25% carried interest with full catch-up on the vehicle lifespan that will reduce to 20% for cornerstone investors with commitments above $50m.

The fund has a three-year investment period within a nine-year lifespan and a two-year optional extension.

Launched with a $500m target, the vehicle held a $420m first close in January 2016.

Investors
The GP received commitments from several LPs, including financial institutions, pension funds, asset management firms, foundations and high-net-worth individuals. Additionally, the management team have inked a 14% commitment to the fund.

Investments
RICP targets early-stage and growth capital investments in companies focusing on the internet sector, which include marketplaces, e-commerce platforms, finance-focused technology, software and travel businesses.

The fund managers target investments with an equity ticket up to 10% of the fund size. However, the limit does not apply to investments in Rocket Internet’s funded companies.

The GP will also consider co-investments with LPs, with a preference for investors that committed more than $50m. In the case of co-investments, the vehicle charges a 50% performance fee.

People
Rocket Internet – Oliver Samwer (CEO).

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