PE Tech Report

NEWSLETTER

Like this article?

Sign up to our free newsletter

Da Vinci Capital launches third emerging fund

Emerging markets private equity fund manager Da Vinci Capital has launched Da Vinci Emerging Technologies-Fund III, its third successive fund.

Emerging markets private equity fund manager Da Vinci Capital has launched Da Vinci Emerging Technologies-Fund III, its third successive fund.

Da Vinci Capital received a USD30 million commitment from DEG, which is part of the KfW Group, in December 2019. The firm is planning a first close in Q2 or Q3 2020, with a target of USD100 million and a final close in mid-2021, at a target of USD300 million.

Fund III focuses on backing emerging technologies. Da Vinci Capital has identified a number of pipeline companies who have developed disruptive technologies and internationally-scalable business models. “We intend to provide further growth equity and ultimately exit and generate returns for investors of around 40 per cent,” the firm said. 

“Companies and investors in more developed markets have continuously looked to emerging markets, which have a reputation for technical excellence, to address a shortage of domestic technical talent. Domestic demand for technology is also growing within emerging markets.  Emerging market technology companies often have dollar-denominated revenues and a low cost base, making them attractive investment targets,” Da Vinci capital said in a statement.

Da Vinci Capital is a global fund manager with close to USD 400 million under management. The firm is backed by development finance institutions (DFIs) and private sector institutional investors. 

Since the firm’s inception in 2007 the Da Vinci team has built a track record including an investment in EPAM, a Pennsylvania-based IT developer with software development operations in Eurasia.

EPAM concluded an IPO in 2012, generating cash-on-cash returns of 3x times for investors in Da Vinci Capital’s first fund, and currently has a market capitalisation of more than USD10 billion.

Like this article? Sign up to our free newsletter

MOST POPULAR

FURTHER READING

Featured