GIC spinout seeks $750m for SE Asia growth deals

The overall target is USD 750m, according to three sources familiar with the situation. They added that all the capital raised so far has come from corporates and high net worth individuals (HNWIs), primarily based in Southeast Asia. Growtheum wants to include institutional investors, such as pension funds, endowments, and fund-of-funds, in the next close. The firm declined to comment.

Should the firm achieve its target, the fund would be the largest first-time private equity vehicle raised for deployment in Southeast Asia and one of barely a dozen overall to surpass USD 700m, AVCJ Research’s records show.

Growtheum’s managing partner is Amit Kunal, who spent five years in investment banking with Merrill Lynch in New York and Singapore before joining GIC in 2011.

At the time, the sovereign wealth fund’s direct portfolio in Southeast Asia comprised the likes of Indonesian retailer Matahari Department Store and mining contractor Delta Dunia. These were co-investments with CVC Capital Partners and TPG Capital, respectively. Kunal’s team made more than 25 solo direct investments through his departure in September 2021.

Notable deals include Philippines-based hospital operator Metro Pacific Hospital Holdings (MPHH). GIC acquired a 14.4% stake in the company for PHP 3.7bn (USD 84.5m) in 2014. Five years later, a KKR-led consortium invested PHP 35.3bn, comprising new shares and exchangeable bonds. GIC sold its position and agreed to re-invest in MPHH alongside KKR.

Other investments included Philippines food manufacturer Monde Nissin, Indonesian paint maker Avia Avian, Indonesian e-commerce platform Bukalapak, and VNLife, operator of Vietnam-based interoperable cashless payment network VNPay.

Kunal took two teammates from GIC with him when he departed to form Growtheum. The firm now has about a dozen employees, with recruits coming from The Carlyle Group, Quadria Capital, L Catterton, General Atlantic, and Warburg Pincus, one of the sources said.

Growtheum is primarily interested in minority growth investment in companies with exposure to discretionary consumption in Southeast Asia. The maximum equity cheque from the fund is USD 150m, but the firm plans to offer substantial amounts of co-investment.

Its first deal was a commitment to Indonesian digital lender Bank Allo alongside strategic players such as CT Corp, Salim Group, Bukalapak, Grab, and Carro. Growtheum’s contribution was USD 250m – USD 50m from the fund and USD 200m from co-investors, the source added.

Bank Allo is ultimately controlled by CT Corp, the Indonesian conglomerate run by Chairul Tanjung. Growtheum’s second investment – a USD 75m commitment, of which USD 20m came from the fund – emerged from the same network. The target was Allo Fresh, an Indonesian online grocery business established in conjunction with Bukalapak and CT-owned Trans Retail Indonesia.

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• Topics
• Southeast Asia
• Fundraising
• Growth
• GPs
• Consumer
• Fundraising
• Growtheum Capital Partners