Golden Equator, KIP launch Southeast Asia tech fund
Singapore’s Golden Equator Capital and Korea Investment Partners (KIP) have jointly launched a S$120 million ($88 million) Southeast Asia technology fund focused on start-ups and small to medium-sized enterprises (SME).
The GEC-KIP Technology & Innovation Fund will be co-managed by the two investors, making Series A and Series B investments of S$2-5 million across the region. A small proportion will be reserved for Korean companies looking to expand into Southeast Asia.
The vehicle is said to have raised 65% of its targeted capital to date. It is expected to reach a first close by the end of August and a final close by the end of the year. LP backers have not been disclosed but they are said to include strategic players that could facilitate exits.
GEC-KIP will be based in Singapore. KIP’s investment professionals will operate out of the city-state’s Spectrum business club, a healthcare-focused co-working and start-up services facility founded last year by Golden Equator and Korean research organization C&R Healthcare Global.
“Given the fragmented tech investment landscape in Southeast Asia, uniting our strengths and network with KIP further bolsters our position,” Daren Tan, a managing partner at Golden Equator, said in a statement. “So, when we invest, it is not just capital; we are essentially also lending our portfolio companies the collective expertise and strategic networks, to accelerate their growth and success in the long run.”
The fund represents an extension of industry efforts to support recent cooperation initiatives between the Singapore and Korean governments. This activity includes a memorandum of understanding agreed this month to promote cross-border exchanges between Enterprise Singapore and Korea’s Ministry of SMEs and Start-ups
Founded in 2012, Golden Equator focuses on digital marketplaces, financial technology and enterprise services, as well as areas related to healthcare and urban technology. In 2015, the firm raised S$40 million for a real estate fund and $40 million for a separate technology fund.
KIP manages 41 funds with assets under management of $2 billion. In the past 10 years, the firm has liquidated 12 funds with an average IRR of 18% and with no net loss on any fund. It claims to invest more than 120 companies a year.
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