Ancora closes Indonesia fund at $128m

Hendrik Susanto, a managing director with Ancora, expects the recent volatility in Indonesia's economy to generate more investment opportunities - and at reasonable valuations.

"For example, we might invest in companies that were ready to go public but now cannot because the market is not supportive," he explained. "They can stay private for 3-4 years and then go public at three times the size at which they previously planned to list."

The Bank of Indonesia's move to tighten interest rates could also encourage companies to turn to private equity as an alternative to bank financing.

Ancora's protracted fundraising, which resulted in the vehicle closing well short of its original $300 million target, was in part due to team turnover.

Veronica Lukito was the only one of the firm's four founders - the team responsible for raising the $150 million Ancora Opportunities Fund in 2008, now full exited - who remained in place for Fund II. Susanto and Alex Ramlie came in as managing directors, but shortly after fundraising began Ramlie left to become CEO of Borneo Lumbung Energi & Metal, Indonesia's largest listed producer of coking coal.

A first close of $70 million came in April 2011 and the fund's debut investment - a palm oil plantation operator - followed about three months later. In mid-2012 Ancora added a hospital company to its portfolio, and then invested in a retail chain focusing on home ware and fixtures in October.

According to market sources, Khazanah Nasional, the Malaysian government's investment holding arm, committed to Fund II as an anchor LP.

Ancora now has a team of around 12 investment professionals, with offices in Jakarta and Singapore.

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• Topics
• Fundraising
• Southeast Asia
• Expansion
• Ancora Capital Management
• Fundraising
• Growth capital
• Indonesia
• Southeast Asia