Indigo holds first close on €170m

Launched in Q2 2018, Indigo Capital II's target is set at €350m and its hard-cap at €400m, a spokesperson for Indigo confirmed. The fund is expected to hold a final close in Q3 2019, the spokesperson added.

The vehicle is therefore likely to have a similar volume to its predecessor, which closed on €330m in 2014.

The vehicle is the second that Paris-based Indigo Capital has raised since it span out from UK-based Indigo Capital in 2012.

Investors
Like its predecessor, around a third of Indigo II's investors will be based in France, a third in the rest of Europe and the final third in the Middle East, Unquote understands. New and existing investors have committed to the vehicle; LPs include pension funds, insurers and family offices, with the latter category showing more interest than the demand experienced for the maiden fund.

Investments
The second Indigo fund will continue the strategy of its predecessor and focus on sponsorless mezzanine operations targeting a portfolio of 20-25 mid-market businesses, valued at less than €300m. The portfolio is expected to generate a 16% gross IRR, the spokesperson confirmed.

Sponsorless operations will account for 70-80% of the deals. The fund will provide tickets in the €20-50m range and engage in co-investments for its larger deals. The fund's first investments are set to take place in Q1 2019.

The vast majority of the fund will be used for investments in France, but also in neighbouring countries, such as Switzerland and Italy – geographies that Indigo I has already invested in.

People
Indigo Capital – Monique Deloire, Cyril de Galea (managing partners).  

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