• First closing of USD 420 million Rocket Internet Capital Partners Fund – an early stage and growth fund with a USD 50 million commitment by Rocket Internet SE • Fund optimizes raising of capital for Rocket Internet’s portfolio companies • Fund provides basis for faster funding of growth opportunities for Rocket Internet businesses and boosting shareholder value
Berlin, Germany, 19th January 2016 – Rocket Internet Capital Partners (the “Fund”) has today successfully held its first closing, with total commitments of USD 420 million of which Rocket Internet SE (“Rocket Internet” or “the Company”) contributed USD 50 million, making it already the largest European Internet focused fund and one of the largest European early stage and growth funds, managed by Rocket Internet Capital Partners Lux S.à r.l. Given strong investor interest, further significant commitments are expected in the near-term.
The Fund offers two strategic advantages to Rocket Internet. It will invest in Rocket Internet business opportunities, thereby streamlining and simplifying the funding process by reducing significantly its reliance on co-investors in individual portfolio company funding rounds. Secondly, Rocket Internet increases its economic exposure to its portfolio companies through performance-based carried interest, therefore increasing Rocket shareholder value without dilution to its shareholders or taking on increased risk.
“The Fund will optimize further the funding process for our portfolio companies,” said Oliver Samwer, Chief Executive Officer of Rocket Internet. “Our companies will have access to more capital and be less reliant on individual co-investors, thereby allowing them to fund in a faster and more efficient manner. This will greatly enhance the entrepreneurial flexibility of our portfolio companies.”
Through co-investing with Rocket Internet, the Fund will have unique access to the attractive and diversified investment opportunities of high growth proven Internet based business models with a focus outside the U.S. and China as well as to the investment experience and the operational platform of Rocket Internet.
The Fund will invest alongside Rocket Internet unless investments are deemed strategic for Rocket Internet. In addition Rocket Internet will retain its focus on founder economics and therefore the Fund will not participate in seed investments in Rocket Internet founded companies. Rocket Internet will have a 28 percent economic exposure of the combined capital invested by Rocket Internet and the Fund through its direct investment in a funding round as well as its commitment in the Fund.
“The Fund will provide considerable economic upside potential for Rocket Internet and its shareholders,” said Peter Kimpel, Chief Financial Officer at the Company. “The Fund provides access to capital without diluting Rocket Internet shareholders. Furthermore, Rocket Internet and its shareholders participate in the returns generated by the investments made by the Fund.”
The Fund, which is set up for a minimum of nine years, has received strong backing from diverse investor groups, including institutional investors such as pension funds, asset managers, fund of funds, insurance companies and foundations as well as high net worth individuals.
”The strong interest by investors in co-investing with Rocket Internet underlines the strength of our business strategy. We deeply appreciate the confidence they have placed in us and our expertise. We look forward to seeking opportunities to invest this capital in world-class Internet companies”, said Oliver Samwer, Chief Executive Officer.
