Dymon Asia closes Fund III at $650m hard cap
Dymon Asia Private Equity (DAPE) has closed its third Southeast Asia middle market private equity fund at a hard cap of USD 650m, beating a target of USD 550m.
The fundraising process took about six months, having begun on April 8. LPs include public pension funds, endowments, banks and insurance companies, fund-of-funds, and large multi-generational family offices. The GP commitment was large by Asia standards according to a source close to the situation; in the prior vintage, it was a double-digit percentage.
DAPE was established in 2012 as a private equity unit under hedge fund manage Dymon Asia Capital and closed its first fund in 2014 on SGD 300m (USD 210m). Fund II hit its hard cap of USD 450m in 2018, beating a target of USD 350m. These vehicles have invested in 12 and 14 companies, respectively, and realised eight exits via trade sales and IPOs.
Fund III follows a build-out of the senior team, with Shao Ming Thein promoted from director to managing director and Gabriel Ho becoming DAPE’s fourth partner alongside the three managing partners, Keith Tan, Gerald Chiu, and Chow Yin Tan. The firm is headquartered are in Singapore and has bases in Kuala Lumpur and Bangkok.
“Southeast Asia is dynamic yet challenging, probably the most diverse region in the world. We understand entrepreneurs and management teams here and their challenges,” Tan said in a statement.
“Over the years, we have built up a highly skilled team with functional expertise to assist, be it in digital commerce, operational excellence and increasingly addressing ESG [environmental, social, and governance] challenges.”
DAPE typically writes equity cheques of USD 15m to USD 50m for profitable companies with revenues of USD 20m to USD 500m.
The firm targets management-led buyouts, growth investments, and privatisations in sectors considered freely competitive, growing, and strategically important. Portfolio support covers succession planning, tech transformation, and acquisitions.
Most investments have been in Singapore and Malaysia, with standout activity including the acquisition of Sembcorp’s biowaste unit, which has benefited from significant pandemic-related tailwinds. Among the most recent deals are shipping industry equipment supplier RAM Spreaders, another corporate carve-out, and healthcare services provider Singapore O&G, a take-private.
Southeast Asia’s middle-market GPs have struggled to attract global LP attention relative to their VC peers as the chequered impact of COVID-19 adds further complication to the region’s fragmented nature.
In August last year, Navis Capital Partners raised USD 900m for its eighth vehicle, while also securing USD 450m for a continuation vehicle for its sixth fund. Four months later, Northstar Group secured USD 590m for its fifth fund. Both came in under target.
Last month, Tower Capital, historically a deal-by-deal player, raised USD 379m for its first fund. Meanwhile, Creador, which invests in India as well as in Southeast Asia, closed its fifth fund at the hard cap of USD 680m.
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