Saratoga to list legacy vehicle

The Indonesian private equity firm intends to float shares in a separate investment holding company on the Jakarta stock exchange.

Indonesian private equity firm Saratoga Capital plans to launch an initial public offering of Saratoga Investama Sedaya, a separate investment holding company, on the Jakarta stock exchange, according to the firm.

The listing is expected in the coming months and according to media reports expects to raise $200 million. 

Kay Mock, a founding partner of Saratoga told Private Equity International that the IPO is not connected to Saratoga Capital’s private equity fund.

“The company being listed is a legacy vehicle used by [founding partners Sandiago Uno and Edwin Soeryadjaya] to hold investments that they consummated mostly prior to the establishment of the funds we manage. The entity being listed has no relationship to the fund.”

The entity is essentially the family office formed by Uno and Soeryadjaya for investing in the pre-Saratoga days during the early 1990s. After Saratoga was established in 1998, they kept the family office, which today holds mainly public securities. The IPO will be a listing of a portion of that vehicle.

Mock would not comment on the reasons for the listing, citing a quiet period. But according to industry sources, capital from the legacy vehicle has previously been used for co-investment in the main Saratoga fund and one aim of a public listing would be to increase co-investment capital.

Saratoga’s Fund III closed on $600 million in May 2012, above the $450 million target. Mock said the firm expects to make new investments this year in Indonesia and other countries in Southeast Asia.

“The deal pipeline is healthy but the environment is clearly much more competitive,” he said. “It takes a longer period of time to close a deal.”

Indonesia and Southeast Asia are expected to be a key source of deal opportunities for multi-billion dollar funds being raised by Kohlberg Kravis Roberts, TPG Capital, Affinity Equity Partners and others.