IFC plans to pick up equity stake in Delta Partners

The Fund may also invest in debt securities that have equity-like returns or an equity component, or are related to its equity investments

Dubai-based Delta Partners Group is planning to raise $350 million for its private equity fund, in which the World Bank's investment arm, International Finance Corporation (IFC) is planning to take an equity stake. The fund invests in telecom, media, and related technology (TMT) companies in markets like Southeast Asia, Africa and West Asia.

The fund might also invest in debt securities that have equity-like returns or an equity component, or are related to its equity investments.

According to project disclosure, IFC is planning to invest up to $10 million in equity, not to exceed 20 per cent of total fund commitments, in a second closing for Delta Partners’ Emerging Markets TMT Growth Fund II, LP, a private equity fund sponsored by Delta Partners Group (Delta).

The fund is seeking to raise a total of $350 million of aggregate commitments for itself and has a hard cap of $500 million, with a second closing targeted at approximately $200 million. The focus will be investments in TMT companies in Africa, Central & Eastern Europe, West Asia, and Southeast Asia.

IFC said its participation in the second close would be catalytic in mobilising other regional and sector investors as IFC provides additional credibility for emerging market TMT investments.

It will provide expansion and growth capital through equity and equity-related investments to a diversified portfolio of private TMT businesses such as broadband & data access, corporate ICT & data centres, localised new media, and network optimisation technologies.

Delta Partners Group, founded in 2006, is a Dubai-headquartered management advisory and investment firm specialising in the TMT industry and serving clients across global emerging markets.