Northstar's Bert Kwan launches PE business with BDA

The new platform, known as BDA Capital Partners, will write equity checks of $10-20 million for entrepreneur-led companies seeking growth capital. There are no immediate plans to raise a fund. Initial investments will be deal-by-deal, through single LP vehicles, or using warehousing facilities. Kwan is already conducting due diligence on several opportunities, according to a source familiar with the situation. He confirmed his appointment to AVCJ but declined to discuss transactions or structures.

While Vietnam is the starting point, there are plans to pursue investments across Southeast Asia. It represents a shift along the spectrum by BDA towards a merchant banking model. The firm has built up its business over the last 20 years as a boutique advisor – primarily on the sell-side – to corporates and financial sponsors engaging in Asia-related cross-border M&A, capital raising and financial restructuring.

Kwan has some familiarity with the merchant banking model, having spent the first 20 years of his career with Lehman Brothers Private Equity and then Standard Chartered Private Equity (SCPE). He departed SCPE in 2016. Kwan helped put together a string of secondary transactions that took $5 billion in assets off the bank's balance sheet, but subsequent plans to raise third-party capital and spin-out the PE division failed to get traction.

His role at SCPE was head of ASEAN private equity with Vietnam the core geography. Investments included children's media platform N Kid, mobile e-wallet platform MoMo, An Giang Plant Protection and restaurant operator Golden Gate. At Northstar he continued in the same vein, backing e-commerce platform Tiki, online education business Topica, and co-working space operator UPGen.

The split from Northstar, which took place last November, is said to have been amicable. Kwan retains responsibility for the firm's Vietnam investments on an interim basis.

Northstar, which targets deals across Southeast Asia but counts Indonesia as its core market, is currently looking to raise $800 million for its fifth fund. The firm closed its previous vehicle at $810 million in 2015 after a challenging fundraising process. Having emerged during the commodities upcycle and when competition for deals in Indonesia was less intense, Northstar has since refocused on consumer and financial services, with a strong technology overlay.

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• Topics
• Southeast Asia
• GPs
• People
• Vietnam
• Northstar Group
• BDA Capital Partners
• Appointments