General Atlantic backs Indonesia lifestyle retailer

The private equity firm has subscribed to zero-coupon bonds that convert into shares in MAP subsidiary MAP Boga Adierkasa (MBA). It represents General Atlantic's first investment in Indonesia.

"General Atlantic is very excited about the opportunities Indonesia's sizeable consumer class offers, where domestic consumption comprises more than half of gross domestic product and consumption patterns are increasingly shifting towards modern and aspirational lifestyle brands," Wai Hoong Fock, head of Southeast Asia at General Atlantic, said in a statement. "These secular trends position MBA's food and beverage portfolio well for further expansion of its footprint, capitalizing on its brands' strong consumer awareness and proven affinity amongst Indonesian consumers."

MBA is a franchise holder across five brands in Indonesia, including Starbucks, Pizza Express, Krispy Kreme, Cold Stone Creamery, and Godiva. The company has more than doubled its store count over the past five years to some 300 outlets in 24 cities. Its net income for the first half of 2016 was up 78% year-on-year at IDR46.3 million. MAP's broader portfolio encompasses almost 2,000 clothing and department stores for brands such as Zara, Marks & Spencer, Seibu, and Reebok. 

"We believe the rapid rise in Indonesia's middle and young working classes, the increase in this population's disposable income, and the continued rural-to-urban migration represents an opportunity for us to strengthen our widely recognized international food brands and cement our leadership position in the food and beverage market through our brands," added V.P. Sharma, CEO of MAP.

US-based General Atlantic has about $20 billion in assets under management and claims to have invested in about 250 companies since 1980. Its Asian footprint includes offices in Beijing, Hong Kong, Mumbai and Singapore.

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• Topics
• Southeast Asia
• Consumer
• Expansion
• Indonesia
• General Atlantic
• Growth capital