In May 2012, Saratoga had a final close on its third PE fund, Saratoga Asia Fund III (SAF III. The Fund will make investments in equity and equity-related securities of companies in Southeast Asia, with a predominant focus on Indonesia. Saratoga believes that Southeast Asia, and particularly Indonesia, represents one of the most attractive and swiftly developing markets in which to invest. Set against the favorable macroeconomic backdrop of Asia, Indonesia is well positioned to benefit from the region’s overall growth dynamics and continued economic resilience.
SAF III will continue to adopt a top-down approach with respect to targeting potential investment opportunities, focusing on three sector categories which represent either: (i) the relative strengths of the Indonesian economy; or (ii) the relative weakness of the economy for which continual and increasing levels of investment are required, in each case providing opportunities to capitalize on strong growth trajectories. Indonesia’s competitive advantages include both natural resources, as well as strong domestic consumption supported by a burgeoning middle class. The relative weakness of the economy lies in underdeveloped infrastructure-related industries such as telecommunications which will over time be beneficiaries of long-term macro growth trends, again driven by a large and growing consumer base and rising income levels.