Family-owned Frog Capital is fundraising for its first third-party private equity fund, it is understood.
Frog is talking to other family offices and institutional investors for the new fund that has already held its first close and is expected to hold a final close by the end of the year. The fund is understood to be double the size of its first vehicle, Frog Capital Fund I that was backed solely by the family office of Germany’s Engelhorn family. That fund’s size was undisclosed.
The new vehicle is expected to make in total 10-12 investments over the next four to five years with equity cheques of typically €5 million to €20 million.
The fund has already invested in the UK digital transfer money service Azimo and digital publishing tool Skimlinks.
Frog targets minority stakes of 15-30 percent in growth stage European technology companies generating strong revenue growth of typically around 40 percent or more.
Its first fund is understood to have eight companies remaining in its portfolio following three realisations with a transaction value of more than €1 billion, and a partial exit.
In 2013, the fund exited GB Group generating a 3.5x return, as previously reported by PEI.
In January, Frog promoted Joe Krancki from principal to partner to take a leadership role in meeting the firm’s goal of making 12-15 new investments over the next four years, PEI reported previously. Krancki joined Frog in 2009 when the firm rebranded from Foursome Investments.