Idinvest holds €350m first close for Secondary Fund III

Alice Tchernookova
12 September 2016

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Idinvest has held a first close on €350m for the third generation of its secondaries fund, Secondary Fund III (ISF III).

The GP hopes to raise another €50m by the end of the year, to reach its €400m target.

In April 2014, the GP held a final close for the fund's predecessor ISF II on €214m, ahead of the original €150-200m target but slightly short of the €300m hard-cap.

ISF II has been invested in 17 secondaries transactions so far, and has already returned close to half of original investments to LPs (42%, according to French financial website Capital Finance), with average returns on investment amounting to around 20%.

Investors
The global investor base is comprised of multiple sophisticated institutional investors, with a strong re-up from ISF II investors into Fund III, the GP told unquote".

Investments
Fund III will have an investment strategy similar to that of ISF II, with a strong focus on mature secondary transactions, targeting small and mid-sized private equity assets through both LP interest acquisitions and GP-led direct secondaries transactions. The fund will invest between €10-30m per deal.

Value creation will be driven predominantly by asset growth and selection, and not just by discount, the GP told unquote". Simlarly to Fund II, Fund III will not use a leverage facility at fund level.

People
Idinvest Partners – Christophe Simon (partner).