idi Emerging Markets Partners will return to market by early 2019 with its largest fund yet that will make select secondaries investments, sister publication 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. It is understood that 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. The fund is now almost fully deployed across 13 deals, it is understood.
The firm declined to comment on fundraising.
Secondaries buyers are taking emerging markets seriously, according to Credit Suisse’s private fund group.
“In our experience, when we have brought these transactions to market we have secured the full time and attention of the buyer universe – so we think buyers are taking them seriously already,” Chris Areson, co-head of the unit’s secondaries advisory unit, told Secondaries Investor in February.
Luxembourg-headquartered idi’s investor base comprises mainly European family offices such as the Peugeot and Bettencourt families. 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.