Heliconia, Yanzijiang Financial launch SE Asia SME fund

The target size is SGD 150m (USD 108m), with Yangzijiang Financial contributing SGD 80m as the anchor LP. The vehicle – Heliconia Generation Fund – will prioritise SMEs in Singapore and Vietnam, typically co-investing alongside other funds managed by Heliconia. Yangzijiang Financial, which will have one representative on the fund's investment committee, may also co-invest alongside the fund.

Heliconia has raised a series of dedicated SME funds: SME Catalyst Fund, which backs third-party funds; SME Co-Investment Fund; and SME Mezzanine Growth Fund, which provides hybrid debt-equity financing. Each one got anchor commitments from the Singapore government and Temasek.

As of 2019, the government allocated SGD 400m across one catalyst fund, two co-investment funds, and one growth fund. Heliconia facilitated approximately SGD 1.3bn in additional funding for companies by investing alongside private sector players. That year, another SGD 100m was set aside for a third co-investment fund.

Heliconia invests in growth-oriented SMEs, favouring companies with a strong market position, sustainable competitive advantage, competent management, and the potential to be significant players regionally or globally. Having initially focused on Singapore, the mandate was widened to Southeast Asia, leading to deals in Vietnam and Indonesia.

The portfolio includes mobile classifieds marketplace Carousell, engineering services group CSE Global, ophthalmology chain Eagle Eye Centre, gaming chair specialist Secretlab, smart devices components supplier Heptagon, restaurant operator Jumbo Group, gaming hardware and software provider Razer, and mixed martial arts events organiser One Championship.

"This is in line with our overall co-investment objective where we can leverage more networks," Derek Lau, CEO of Heliconia, said in a statement. He added that Yangzijiang Financial, as a like-minded investor, would add value to portfolio companies.

Yangzijiang Financial is a cross-border investment manager primarily focused on Singapore and China. As of December 2021, it was invested in 12 funds managed by China-based GPs with SGD 732.5m in assets under management. Other business lines include wealth management – AUM stood at SGD 58.3m as of year-end 2021 – and debt investment.

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• Topics
• Southeast Asia
• Fundraising
• Growth
• Temasek Holdings
• Heliconia Capital Management
• SME