Indigo Capital II holds €300m final close

The vehicle was launched with a €350m hard-cap and held a €170m first close in January 2019. The GP lost two of its investors following the outbreak of the coronavirus pandemic, and decided to close the fund shy of the initial hard-cap. "Our fundraising was successful despite the pandemic, but now we prefer to focus on our investment strategy and portfolio management instead of raising additional funding in the current situation," the GP told Unquote.

Headquartered in Paris, Indigo specialises in financing small and medium-sized European businesses with enterprise values of €20-300m, through a combination of private bonds and preferred equity.

Since its inception in 2000, the firm has completed 50 transactions and 31 divestments across France, Italy, the Netherlands, Switzerland, and the UK, and has raised €800m from institutional investors.

Investors
Two thirds of the fund's LPs are European institutional investors, primarily insurance companies and pension funds, and one third is composed of European family offices.

Indigo told Unquote: "We offer bonds and access to equity, a combination that guarantees a high level of protection while delivering good returns. This is a type of product that has proven very appealing for family offices across Europe."

Investments
Indigo Capital II provides subordinated debt and preferred equity to European mid-market businesses.

The fund deploys tickets of €5-40m, with a sweet spot of €25m. It has already made nine investments, deploying around 35% of its capital, the GP told Unquote.

The vehicle only invests in continental Europe, with a special focus on France, the Benelux region, Italy and Switzerland.

Indigo told Unquote that it has a rich and strong pipeline and expects to close more deals in the coming months. "Our strategy is very suitable for the current situation, in which many companies need financial support and funding for their growth and expansion," the GP said.

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• Topics
• Funds
• Debt
• France
• Benelux
• Southern Europe
• DACH
• Indigo Capital
• France
• coronavirus