Idinvest eyes €1.5bn haul in 2016 – Exclusive

The former captive investor of Allianz is targeting fund closes across secondaries and private debt strategies in what could be its biggest fundraising year since spin-out.

Idinvest Partners, the mid-market investor and former captive of Allianz, hopes to raise more than €1.5 billion across its various strategies in 2016 by tapping into more Middle Eastern and Asian sovereign wealth funds.

The firm currently has €6.4 billion under management across fund of funds, private debt, growth capital and venture. It is currently on the road raising money for its third secondaries fund and its fourth private debt fund – focusing on mezzanine and unitranche – and expects to start marketing a fourth iteration of its senior secured debt fund “after the summer” said Christophe Bavière, the firms' president, in an interview with Private Equity International .

Last year the firm raised a €500 million senior loan fund and a €150 million digital venture fund, as well as picking up two substantial separate accounts, said Bavière, including a €300 million mandate from French state institution Caisse des Dépôts et Consignations.

The firm hopes to close its third secondaries fund on its target of €400 million by the end of the summer, said Bavière, which will represent a significant uplift from its €250 million 2014 predecessor.

At the same time the firm is raising a €700 million private debt fund focusing on mezzanine and unitranche opportunities. Again, this will be substantially larger than its €400 million predecessor.

The firm is targeting a first close before the end of the summer and final close around the end of the year, said Bavière, who added that this was as large a fund as the firm has ever raised and it would be unlikely to go any larger, due to the nature of the European mid-market: “We have a large platform, but operate in a very fragmented market, so each vehicle is relatively limited in size.”

The senior secured debt fund, which Bavière said will launch later this year, will likely target €500 million, similar to its two predecessors.

Idinvest spun out from European insurer Allianz in 2010 and has since grown its AUM from €2.5 billion to €6.4 billion, although Bavière stressed that asset growth is not the most important KPI to the firm: “Our real KPIs are the performance of our funds and on the amount of cash sent back to our investors”.

Its core LP base reflects its insurance heritage, according to Bavière, but the firm is now seeking to build relationships with sovereign wealth funds in Asia and the Middle East, which as a group tend to be under-allocated to mid-market and growth capital in Europe, he said.

The firm is managing a platform targeting €1 billion drawn from Chinese investors that will invest in parallel with Idinvest's own vehicles into small and medium sized businesses primarily in France and then the rest of Europe, as reported by PEI .