OCBC closes debut SME-focused PE fund at $392m

The Lion-OCBC Capital Asia Fund was raised through the firm's mezzanine capital unit and will be managed by OCBC's asset management subsidiary Lion Global Investors, according to a release. It will invest in small and medium-sized enterprises (SMEs) in Singapore, Malaysia, Indonesia and China, with a particular focus on companies with connections to the agricultural, commodities and consumer sectors.

OCBC launched the fund in November 2014 with a target of S$400 million, but increased the target due to investor interest. LPs include institutional investors and high net worth individuals; the latter includes customers of OCBC's private banking subsidiary Bank of Singapore.

The firm expects Southeast Asian businesses' overseas expansion plans to provide a number of investment opportunities for the new fund. Urbanization and economic growth in the target markets, along with their transition to information-based economies, are also expected to lead to growth in the fund's sectors of focus.

UOB's mezzanine unit has also identified opportunities in Southeast Asian SMEs. The firm, along with Japan's ORIX Corp, launched a $200 million mezzanine fund last September. Wee Yap Yeo, UOB's mezzanine capital head, told AVCJ that the fund will cover a range of situations, including growth capital, M&A financing and corporate restructuring.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Greater China
• Mezzanine
• GPs
• Fundraising
• Southeast Asia
• China
• OCBC
• Fundraising
• GPs
• Mezzanine