ADB invests $25m in Mizuho SEA fund
The Asian Development Bank (ADB) has agreed to invest $25 million in Exacta Asia Investment II (Exacta II), a Southeast Asia-focused vehicle launched last year by Japan’s Mizuho Bank.
Exacta II targets small and medium-sized enterprises (SMEs) in Indonesia, Malaysia, Singapore, Thailand, Vietnam, and the Philippines, focusing on the manufacturing, technology, and service sectors. In addition to providing up to $40 million in equity capital per transaction, it also promotes partnerships between its investee companies and Japanese SMEs.
The fund has a target of $250 million and is managed by Exacta Capital Partners, an entity in which Mizuho holds a 40% stake. Other LPs include Japan’s Dai-ichi Life Insurance and Germany’s DEG, which have invested $30 million and $25 million respectively, and French development finance institution Proparco.
“ADB’s investment will help well-managed and middle-market SMEs in Southeast Asia to realize their growth plans, thereby driving employment, tax generation, skills transfer, and regional trade,” said Janette Hall, ADB’s director for private sector investment funds and special initiatives, in a statement. “Investing in Exacta II allows ADB to participate in Southeast Asia’s continued economic growth while providing development benefits for people in the subregion.”
ADB has backed a number of Asian PE funds, with recent investments including a $50 million commitment to the sixth fund of India’s True North and a $60 million investment in OrbiMed’s latest Asia healthcare vehicle. The bank focuses on reducing poverty in the Asia-Pacific region by promoting economic and environmentally sustainable growth and regional integration.
As a direct investor, ADB has backed companies such as Arctic Green Energy, an Iceland-based geothermal energy developer with a number of projects in Asia, and Indian microfinance institution Satin Creditcare. It also is a founding partner of Asia Climate Partners, an investment fund focused on renewable energy and cleantech.
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