Infravia aims to raise up to EUR 1bn for next growth fund, eyes mid-2024 launch

Myriam Mariotte
04 April 2023

Tweet
Facebook
LinkedIn
Google plus
Send to

Paris-headquartered sponsor Infravia aims to kick off the marketing phase for its second growth equity fund by year-end, with an official launch expected by mid-2024, partner Guillaume Santamaria said.

Although no definitive target size has been set for this fund, it could be between EUR 750m and EUR 1bn, he added.

The successor to Infravia Growth I will have an investment strategy largely similar to its predecessor, targeting established B2B tech companies, he said.

The new fund will predominantly invest in Series C and D rounds, whereas the first fund was also deployed in Series B, and the average ticket will increase from EUR 30m to EUR 50m for the new vehicle, he added.

Infravia Growth II will not aim to reinvest in companies already in the portfolio of the first fund, he said.

Infravia kicked off its growth strategy with a dedicated fund in 2020, with the vehicle eventually collecting EUR 501m in commitments against a EUR 300m target, as reported.

The vehicle's limited partners (LPs) are almost entirely French institutional investors, including French banks Cardif and Crédit Agricole as well as insurer Sogecap, with also 40 privates investing, the partner said.

Infravia targets around 20%-25% gross IRR for the vehicle, he said.

Infravia Growth I has invested in 11 companies, deploying more than 50% of the EUR 501m it collected, Santamaria said. It participated in Series B, C and D rounds, with tickets of EUR 10m-to EUR 50m, mainly investing in workplace solutions, infrastructure, cybersecurity and e-commerce solution providers, he added.

Last month, Infravia Growth I contributed around 80% of the USD 52m Series C round raised by French cybersecurity expert Datadome, as reported by Unquote sister publication, Mergermarket.

As the market has slowed down recently without the fund modifying its investment criteria, it is completing fewer deals, from six per year at launch against three over the last twelve months, he said. However, Infravia Growth I is still active and the firm is "confident" that it will complete its last two to three deals by year-end, he added.

Infravia Growth I aims to secure large minority stakes of up to around 25% at entry and always invests in exchange for a seat at the board, he said.

It aims to support its portfolio companies over a five- to seven-year period, he said.

Infravia, which has raised EUR 10bn to date according to its official website, has established a cross-vehicle ESG strategy, monitoring the gender gap and diversity in the workforce, as well as carbon consumption reduction, he said. The firm has an internal team of two people dedicated to these topics, which will soon increase to three, he added.