ADB backs Creador's Southeast Asia fund
Creador has raised $50 million for its fourth Southeast Asia and India-focused private equity fund from the Asian Development Bank (ADB).
AVCJ understand that this brings the fundraise to $533 million to date. About 90% of this total has come from existing investors.
It follows a first close in July of $430 million. The fund, which was launched in January with a target of $500 million, has set a hard cap at $550 million. It will maintain a similar remit to its predecessors, primarily targeting Malaysia, Indonesia, Singapore, and India through minority growth investments, including PIPE deals.
ADB stressed an interest in gaining exposure to financial services, healthcare, consumer, business services, and manufacturing across the region, including the Philippines, Sri Lanka, and Vietnam. "ADB's investment will help further deepen capital markets and provide liquidity to small and medium-sized enterprises to realize their growth plans and achieve market-leading positions in their respective sectors," Janette Hall, a director at ADB's private sector operations department, said in a statement.
Creador raised $130 million for its first fund in 2013. Fund II closed at $330 million in October 2014 and a third vehicle followed in 2016, closing at $415 million with support from ADB. Other LPs across various funds include Hamilton Lane, Siguler Guff, and Quilvest, as well as a Malaysian pension fund and a US endowment.
Recent activity includes a full exit from Indian building materials supplier Vectus Industries. Creador invested about $14 million in the company in 2014 and held a 21% stake at the time of divestment. Other exits include Cholamandalam Investment & Finance, Somany Ceramics and Repco Home Finance. The returns on those deals were 3.7x, 5.3x, and 4x, respectively. Creador has also exited Indonesia-based BFI Finance.
ADB's other private equity fund commitments include a $50 million investment in the sixth fund of India's True North and a $60 million investment in a healthcare vehicle managed by OrbiMed. In October, ADB agreed to contribute $25 million to a vehicle launched by Japan's Mizuho Bank that will focus on small to medium-sized enterprises in Southeast Asia.
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