UOB, Orix launch $200m SE Asia-focused mezz fund

UOB and ORIX are putting in an initial combined sum of US$100 million to the vehicle - the United Orient Capital Fund - with a target to raise another US$100 million from institutional investors based in Asia.

According to a release, the fund will target companies with mature operations, strong cash flow and good management teams. Other considerations include such companies' market share, brand name and the industry's entry barriers.

The vehicle will be managed by a joint venture between UOB and ORIX, United Orient Capital, and it investments will be used by these companies to finance corporate expansion and corporate restructuring activities such as recapitalization, mergers and acquisitions as well as privatization. It will make its investments through the provision of loans or the purchase of bonds and preference shares

"Southeast Asia's fast-growing companies are seeking capital to help them tap the opportunities arising from the two megatrends in the region - increased consumer spending and intraregional trade," said Terence Ong, director of the fund and UOB's group head of global markets and investment management. "The fund will provide these companies with an alternative source of financing to helpthem to fulfill their expansion ambitions and business development plans."

Set up in 1935, United Overseas Bank Limited (UOB) has a global network of more than 500 offices in 19 countries and territories in Asia Pacific, Western Europe and North America. Financial sevices ORIX was established in 1964 and has location in 35 countries globally.

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• Topics
• Southeast Asia
• North Asia
• Fundraising
• Fundraising
• Singapore
• Japan
• ORIX Capital