Novo Tellus hits $375m first close on third Indo-Pacific fund
Novo Tellus Capital Partners, an investor in industrial technology assets across the Indo-Pacific region, has reached a first close of approximately USD 375m on its third fund – matching the overall target for the vehicle.
The first close was confirmed by two sources close to the situation. One of the sources added that LPs include Temasek Holdings and assorted US endowments and foundations. The hard cap has been set at USD 500m. Novo Tellus declined to comment on fundraising.
The Singapore-headquartered firm was established in 2011 by Wai San Loke, who previously made IT investments for Baring Private Equity Asia (now BPEA EQT). He maintains this sector focus, concentrating on semiconductors, precision manufacturing, software, communications technology, life sciences, and digital services.
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 transactions.
Deals included the acquisition of MFS Technology, a printed circuit board manufacturer, alongside Navis Capital Partners in 2015. The business was exited in 2018, generating a 3x return. Novo Tellus backed semiconductor testing company AEM Holdings in 2011 when its shares were trading at SGD 0.07. It exited, following a fivefold increase in revenue and a 5,600% jump in the stock price, with a 15x return.
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.
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.
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.
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.
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.
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