Hedge fund Dymon branches into PE – report

According to Reuters, Keith Tan, Dymon's managing partner, told investors this month that Dymon Asia Private Equity (DAPE) is targeting S$300 million ($246 million). This will include a S$100 million contribution from Temasek unit Heliconia Capital.

DAPE's investment focus will be privately-held small- and medium-sized enterprises with S$25-500 million in turnover.

Singapore-based Dymon was founded by Danny Yon, an ex-founding partner and chief investment officer of Abax Global Capital. It manages around $2.5 billion via its macro hedge fund, which was launched in 2008.

Earlier this month, it was revealed that China-focused PE firm SAIF Partners plans to launch a Greater China hedge fund, making it the first major Chinese PE player to attempt such a move. The negotiations with investors are said to be at an early stage, but the current intention is employ the long-short equity strategy - the most frequently adopted hedge fund strategy in Asia.

Convergence is perhaps to be more expected where hedge funds are concerned, however, given that their industry that has suffered stunted growth over the last few years. Hong Kong-based Senrigan Capital, which is backed by The Blackstone Group, is one of just five or six hedge funds in Asia to amass assets worth $1 billion or more since 2008.

Asia hedge fund returns have also been lackluster, particularly those for equity long-short strategies, which ended 2011 down 13.7%. The realization that they can't consistently generate the 15-20% returns their investors demand has prompted several funds to branch into other areas.

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

• Topics
• Fundraising
• Southeast Asia
• Singapore
• Hedge funds
• Temasek Holdings