General Atlantic seals first deal in Indonesia

The New York-headquartered firm is betting on the region’s burgeoning consumer market with its investment in lifestyle retailer Mitra.

New York-headquartered growth equity investor General Atlantic has made its first foray into Indonesia with an investment in a Jakarta-headquartered lifestyle retailer PT Mitra Adiperkasa Tbk (MAP).

The firm bought 1.1 trillion rupiah ($75 million; €70 million) in zero-coupon bonds, convertible into shares totalling about 30 percent, in MAP’s food and beverage subsidiary, PT MAP Boga Adiperkasa (MBA), the firm said in a statement.

MBA is the local operator of global F&B brands including Starbucks, Cold Stone Creamery and Krispy Kreme.

The investment will be used to expand the business in Indonesia, including opening up to 60 Starbucks branches annually in the next couple of years, MAP vice president Vijay Sharma said in a Nikkei report.

“General Atlantic is very excited about the opportunities Indonesia’s sizeable consumer class offers, where domestic consumption comprises more than half of gross domestic product and consumption patterns are increasingly shifting towards modern and aspirational lifestyle brands,” commented Wai Hoong Fock, head of Southeast Asia, at General Atlantic. “Our partnership with MAP marks General Atlantic's first investment in Indonesia and is a clear indication of our strong commitment to the long-term market prospects in Southeast Asia.”

General Atlantic, with around $20 billion in assets under management, mainly invests in consumer goods, retail and financial services, according to PEI data. In August, the firm teamed up with the Chinese online travel agency Ctrip as well as several institutional investors and high net worth individuals to invest up to $400 million in Ocean Link, a Shanghai-based travel-focused investment platform. The firm also made back-to-back investments earlier this year in Australian fashion brand Zimmerman and in the commodities reporting company Argus.