Smart Money
    Category: Private Money By : Ulisari Eslita Read : 1169 Date : Wednesday, June 12, 2013 - 09:44:09

    Toto Santiko Budi for Forbes Indonesia

    This year will be a remarkable one for private equity firm Saratoga Capital. After 15 years of operations, Saratoga's main vehicle for doing deals, PT Saratoga Investama Sedaya, is scheduled for an IPO this month, and is hoping to raise at least $270 million. While other private equity firms have gone public elsewhere, this planned IPO will be the first private equity firm traded on the Indonesian market, with an expected initial market capitalization of about $2 billion. Financial firms UBS and Deutsche Bank will manage the offering.

    Saratoga has been the driving force of some of the country's largest companies. It has funded coal miner Adaro Energy, cell tower operator Tower Bersama, motorcycle distributor Mitra Pinasthika Mustika, palm oil producer Provident Agro, Mandala Airlines and other investee companies. “This is the right time for us to transform after 15 years of operations, particularly on the funding part. We aim to meet company's financial requirement for the next three to five years, so we can keep expanding,” says PT Saratoga Investama Sedaya President Director and Co-founder of Saratoga Capital Sandiaga Salahuddin Uno.

    Saratoga is one of the country's oldest private equity firms, founded in 1998 by billionaire Edwin Soeryadjaya and Sandiaga, whose net worth is now well over half a billion. The name was suggested by Edwin, after the U.S. resort city of Saratoga in New York. In 2007, Saratoga Capital launched its first fund, Saratoga Asia II, raising $152 million fund and fully invested in 2011. Meanwhile, Saratoga Asia III, which closed in 2012, has about $600 million, of which around $135 million has been deployed so far this year.

    Currently, Saratoga has 15 companies in its portfolio, employing more than 30,000. Saratoga itself has three general partners and 15 investment teams that are working together in order to generate a 25% IRR for a blue-chip roster of investors such as the World Bank's International Finance Corp. “Saratoga has a good reputation and performance,” says Adaro President Director Garibaldi “Boy” Thohir. “Saratoga is the pioneer in this industry, and it has survived for the past 15 years, and it is growing. Saratoga has all the ingredients for greater success.”