Growtheum closes debut Southeast Asia fund on $567m
Growtheum Capital Partners, a private equity firm established by the former head of GIC’s direct private equity investment group in Southeast Asia, has closed its debut fund on USD 567m, falling short of the USD 750m target set in early 2022.
It remains the largest first-time PE vehicle predominantly focused on Southeast Asia, according to AVCJ Research. Moreover, Growtheum is one of just four independent private equity managers – alongside Creador, Dymon Private Equity, and Navis Capital Partners – to raise more than USD 500m for deployment in the region over the past three years.
The firm said in a statement that it “is a testament to the opportunities ahead in the region that one of the largest ever debut funds in SEA [Southeast Asia] and India comes amidst a challenging fundraising environment.”
Growtheum reached a first close of around USD 400m in early 2022, relying on commitments from corporates and high net worth individuals. The goal was to include institutional investors, such as pension funds, endowments, and fund-of-funds, in the next close. LPs that have disclosed their involvement include the International Finance Corporation (IFC) and Asian Development Bank (ADB).
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 co-investments with GPs. Kunal’s team made more than 25 solo direct investments through his departure in September 2021
The portfolio included Metro Pacific Hospital Holdings (MPHH) and Mode Nissin in the Philippines, paint maker Avia Avian and e-commerce platform Bukalapak in Indonesia, and VNLife, operator of Vietnam-based interoperable cashless payment network VNPay.
Growtheum has one other partner: Koon Po Choo, who previously worked with Kunal at GIC. It has also recruited investment and operations professionals from Credit Suisse, B Capital Group, BPEA EQT, Partners Group, and Alvarez & Marsal.
The firm is primarily interested in minority growth investment in companies with exposure to discretionary consumption in Southeast Asia.
Its first deal was a USD 250m commitment – a USD 50m from the fund and USD 200m from co-investors – to Indonesian digital lender Bank Allo. This was followed by a USD 75m investment – of which USD 20m came from the fund – in Allo Fresh, an Indonesian online grocery business. Local conglomerate CT Corp is the ultimate owner of Bank Allo and established Allo Fresh in conjunction with Bukapalak.
Since then, Growtheum has paid approximately USD 100m for a 15% stake in Vietnam-based International Dairy Products (IDP) and backed Indonesian hospital operator Mitra Plumbon Healthcare Group (MPHG).
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