Northstar hits first close on fifth Southeast Asia fund

The firm said it received commitments from sovereign wealth funds, insurance companies, family offices, and high net worth individuals. The first close on Northstar Equity Partners V – which launched towards the end of last year – takes overall assets under management past the $2 billion mark.

Northstar closed its fourth vehicle at $810 million in 2015 after a challenging process that coincided with the end of the commodities boom and economic difficulties in Indonesia. Having emerged during the commodities upcycle and when competition for deals in Indonesia was less intense, the GP has since refocused on consumer and financial services, with a strong technology overlay.

“In this period of volatility, uncertainty and complexity, we want to be the preferred provider of capital and the partner of choice for business owners needing assistance to weather the storm, and capitalized on future opportunities,” said Glenn Sugita, co-founder and managing partner of Northstar, in a statement.

Recent investments include Bank Artos, which is being converted into a fully digital bank in collaboration with Bank Tabungan Pensiunan Nasional (BTPN). Northstar previously owned BTPN – it bought a majority stake with TPG Capital in 2008 and exited about six years later with a sizeable return – but the strategy was manifestly different, concentrating on traditional branch expansion rather than digitization.

Technology is also a key value driver in Fund IV through Go-Jek, an Indonesian ride-hailing and online-to-offline services platform valued at $10 billion. Northstar took part in the Series B round but first got to know founder Nadiem Makarim much earlier when he worked for another portfolio company. The private equity firm is said to have made a partial exit in Go-Jek’s Series F round, which is expected to reach $2 billion across multiple tranches.

Northstar is also an investor in Go-Ventures, the VC arm of Go-Jek. This is intended to give it insight into early-stage technology trends and access to investments in the space as start-ups mature. While Fund V will primarily focus on mature growth companies, it will selectively make investments in early-stage opportunities.

The firm was founded in 2003 by Sugita and Patrick Walujo. They pursued a combination of small investments and M&A advisory work before raising a debut fund of $110 million. A second vehicle closed at $285 million in 2010 and a third – which saw the remit expand from Indonesia to Southeast Asia – at $820 million in 2011. Northstar has backed more than 30 companies since inception, committing over $3 billion, including LP co-investment.

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• Topics
• Southeast Asia
• Fundraising
• Growth
• Consumer
• Technology
• Financials
• Northstar Group
• Indonesia