Mantra returns with second fund – exclusive

The niche investment firm's MSO II fund will target a net return multiple of 2x and IRR of 25%, Secondaries Investor has learned.

Mantra Investment Partners will return to market after the summer, with a €100 million target for its second fund, twice its debut’s target of €50 million.

The Paris-headquartered niche investment firm will target €100 million from limited partners with a €120 million hard-cap for Mantra Secondary Opportunities II fund (MSO), according to partner Fabrice Moyne.

MSO closed in December 2015 above its €75 million hard-cap on €80 million after 15 months of fundraising, Secondaries Investor reported.

“We want to be very focused on what we do and we feel we have a good edge on our specific strategy,” Moyne said. “Part of that edge is staying focused on the types of deals we want to do, and we feel that number is right,” he added, referring to the MSO II’s target.

MSO II will target a 2x net return multiple and a 25 percent net internal rate of return. Mantra can underwrite its deals to these targets because it seeks niche, less competitive deals including stakes in funds focusing on mining, agribusiness and other real assets, Moyne said.

The firm, which is closing the 15th deal from its debut fund on Thursday, expects to close several others before the end of August, which would bring the vehicle to 75 percent invested. Its 14 deals involve assets in Russia, Latin America, Europe, North America and Asia, according to Moyne.

Limited partners in MSO are a mix of family offices, insurance companies, asset managers and banks.

The average deal size from MSO was below €10 million, but this fund will target slightly larger deals, Moyne said.

MSO II will have a 10 percent preferred return.

Management fees will be 10 percent lower than that of its predecessor and will only be charged on invested capital when the first deal from MSO II closes. However, Moyne decline to comment on the size of the management fee.

In January the firm hired its first chief operating officer, Diana Gatcan, who is based in Luxembourg where the funds are domiciled. It also plans to hire two analysts – one in Paris as early as September and another in New York next year, Moyne said.

Mantra is also moving a Paris-based associate to its New York office at the end of July to join partner David Hersh.

Mantra was founded in 2007 and has eight staff across three offices.