Emerging markets-focused idi launches largest fund yet – exclusive

The fund of funds manager is planning on adding offices in India, Latin America and Africa.

idi Emerging Markets Partners will return to market by early 2019 with its largest fund yet, Private Equity International has learned.

The emerging markets-focused fund of funds manager is in early discussions with anchor investors for idi Emerging Markets Partners Fund IV and will target $300 million, according to a source with knowledge of the fundraising.

Fund IV will have the same strategy as idi’s previous vehicles, backing mid-market and growth capital GPs focused on domestic consumption in its five target geographies. PEI understands 50 percent of the fund will be dedicated to primaries and secondaries, and the remainder to direct investment and co-investments.

Fund IV is seeking almost twice that of its predecessor, the 2014-vintage idi Emerging Markets Partners Fund III, which closed on about $150 million. PEI understands that fund is now almost fully deployed across 13 deals.

The firm declined to comment on fundraising.

The Luxembourg-headquartered firm’s investor base comprises mainly European family offices such as the Peugeot family. French investment firm FFP is an investor in Fund III, according to PEI data.

idi’s biggest regional exposure is to China at roughly a third of its portfolio across 15 funds, according to its website. The firm has backed the earlier vehicles of Chinese managers CDH Investments and New Horizon, as well as Indonesia-focused Falcon House Partners. Its direct investments in the region include Chinese shoe retailer Belle International, South Asian food services platform Sapphire Foods and Hangzhou-based Best Logistics.

The firm typically commits between $15 million and $20 million to its GPs, while co-investments are between $5 million and $50 million.

In February, the firm set up its third global outpost in Hong Kong headed by Yann Malka, who serves as director of China and South-East Asia. idi also has plans to expand its presence in the region, with another office in India, as well as offices in Latin America and Africa in the next two years, it is understood.