Novo Tellus seeks $375m for third industrial tech fund
Novo Tellus Capital Partners, a Singapore-based private equity firm that invests in industrial technology assets across the Indo-Pacific region, has set a target of USD 375m for its third fund.
Mergermarket, AVCJ's sister title, was informed of the development by three sources familiar with the situation. The hard cap has been set at USD 500m, the first source said.
Novo Tellus was founded in 2011 by Wai San Loke, who previously made IT investments for Baring Private Equity Asia. The firm maintains this sector focus, concentrating on areas such as semiconductors, precision manufacturing, software, communications technology, life sciences, and digital services.
Novo Tellus believes industrial technology in Indo-Pacific is being shaped by three key forces: technology companies expanding from downstream manufacturing into upstream innovation; an expanding domestic consumption base; and geopolitics-driven supply chain diversification as multinationals look to ease their dependence on China.
Fund I had a corpus of USD 25m, primarily raised from Asian families and high net worth individuals. However, co-investment took overall deployment to USD 200m across five deals.
A second fund closed on USD 250m in late 2020, beating a target of USD 175m. The LP base is 80% institutional, featuring pension funds, endowments and foundations, and sovereign wealth funds, most of them based in the US and Asia.
Recent investments include the acquisition of a controlling stake in SP Manufacturing, a Singapore-based contract manufacturer of electronics, and participation in a USD 30m Series C round for Innovative Micro Technology, a semiconductor foundry in the US, as announced.
The portfolio also features precision manufacturer Grand Venture Technology, industrial automation services provider ISDN, IC module assembly and testing specialist Novoflex, and plastic components manufacturer Sunningdale Tech. All four are headquartered in Singapore. A fifth company, semiconductor engineering player Tessolve Semiconductor, is located in India.
Notable exits by Novo Tellus include printed circuit board maker MFS Technology and semiconductor testing business AEM Holdings. These investments generated returns of 3x and 15x, respectively.
In addition, the private equity firm sponsored one of the first special purpose acquisition companies (SPACs) raised in Singapore. Novo Tellus Alpha Acquisition listed in January 2022.
Novo Tellus declined to comment on fundraising.
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