Amadeus fund hits $75m first close

The fund is looking to raise $150m with a final close slated for 2014.

"We are looking for a small number of big-ticket investors," says Anne Glover (pictured), co-founder and CEO of Amadeus. "The investment thesis will only appeal to globally-oriented investors."

Indeed, the fund will invest in late-stage venture and growth companies in mature markets but whose products will be targeted to the specific needs of people in high-growth markets in Africa, the Middle East, Asia and Latin America. "The vast majority of the businesses will be based in our usual markets, with revenues coming from developing markets," says Andrea Traversone, partner at Amadeus. He adds that MTN will be one possible source of dealflow for the fund. The vehicle will make 10-20 investments, with the first expected by year-end.

More than 20 of Amadeus's extant portfolio companies have customers in these markets, including Cambridge Broadband Networks, which Amadeus has backed since 2000, and mobile marketing company Celltick. "We have developed this investment thesis over the last five years, but the issue was finding investor support for a similar strategic focus," Glover explains.

Indeed, it is a widely accepted truth that most LPs are restricted – to an extent at least – by asset allocation decisions when it comes to passing ideas along to investment committees. Typically these are categorised by geography, then stage and then sector. This may be changing, suggests Glover: "LPs are much more interested in high-conviction theses now – it is a big change since the crisis. This is refreshing since, as technology experts, we've always functioned globally but been constrained to invest in 'Europe' by our prior mandates."

In many emerging markets, technology leapfrogs that of other, more developed markets. For example, credit card and pre-pay methods have largely been bypassed in favour of mobile payment systems, since rolling out the infrastructure for the more traditional methods can be prohibitive.

Despite effectively cornerstoning the fund, MTN will have rights as a typical LP. "They did not press for additional or preferential rights; our duty is to provide them with a financial return, but they are very interested in creating mutually beneficial partnerships with some of the portfolio companies," Glover says.

The fund has a 10-year lifespan, with a five-year investment period and three one-year extensions.

Amadeus may eventually establish a presence in one or two emerging markets, depending on where they find the talent, according to Glover and Traversone.

SJ Berwin provided legal advice for the fund. A placement agent may be appointed for certain geographies.

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