SBI, FMO target up to $125m for Asia financial sector fund
Japan's SBI Holdings and the Netherlands Development Finance Company (FMO) are looking to raise as much as $125 million for their SBI-FMO Emerging Asia Financial Sector Fund.
The fund will invest in financial sector opportunities in emerging Asia with a particular focus on India, Sri Lanka, Bangladesh, Indonesia, the Philippines, Thailand, Cambodia and Vietnam. It will be managed by SBI Ven Capital, a mid-market regional VC player affiliated with the Japanese financial conglomerate.
According to a release, this week marks the formal launch of the fund, which was first announced in June last year with an initial target of $80 milllion. However, the target has since been revised to $100-125 million following a strong response from marquee investors.
The fund has exceeded its first close target of $60 million and will now formally start making investments. It is understood the vehicle will invest mainly in growth-stage companies, although it is restricted from participating in equities or equity-linked instruments.
The fund plans to undertake 3-4 transactions per year and will consider co-investing with other GPs. It will look to leverage the extensive financial services' platforms of both SBI and FMO.
"High expected economic growth, ongoing structural reforms which may result in consolidation opportunities, socio-political intent to spur financial inclusion, as well as technological advances, all augur well for financial sector investments in emerging Asia," SBI Ven Capital's Brijesh Pande, who will be managing the fund, told AVCJ last year.
SBI Group, which has assets under management in excess of $3 billion, has made a number financial sector investments in emerging Asia. Among them are its purchase of a 25% stake in BNI securities - a unit of Bank Negara Indonesia - for around $13 million and the acquisition of a 20% stake in Vietmanese brokerage firm FPT Securities for $25 million. Both deals closed in 2011.
FMO - which has an investment portfolio worth EUR6.3 billion ($8,5 billon) - provides debt and equity to more than 180 financial institutions in emerging markets.
More on North Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.