Indigo Capital SAS has held a first close of its latest mezzanine fund on €170 million, with a final close expected in September this year.
Indigo Capital II will mirror the strategy of its predecessor vehicle, FPCI Indigo Capital, which raised €250 million in 2014. It will focus on providing bond financing to private equity funds, private investors, executives and corporates to support their growth in Europe. Typical financing will range between €5 million and €40 million.
The firm will invest in small and medium-sized businesses in its native France and across Europe, looking at businesses with an enterprise value of €20 million to €300 million.
Indigo Capital II has attracted investment from a range of institutional investors including pension funds, insurance companies and governing bodies, with most based in Europe. It has also added new investors, which are predominantly based in France.
Indigo Capital SAS was formed in 2012 when managing partners Monique Deloire and Cyril de Galea spun out from Indigo Capital. The team has been investing in European mezzanine debt since 2000 and has supported almost 50 companies.
The eight-person ream is based in Paris and has €500 million of assets under management. Its FPCI Indigo Capital fund is now fully invested across 19 European companies.