Banker formally launches $1b Indonesia fund
A new Indonesian merchant banking operation plans to raise a $1 billion private equity fund that will target investments in the country. If successful, it would be the largest ever Indonesia-focused fund as well as one of the largest vehicles of its type in Southeast Asia.
Regulatory approval for the Java Fund is expected towards the end of the first quarter, after which further information will be disclosed regarding the organizational structure of the fund and its executive team.
The formal announcement comes two months after C. Christopher Holm, a former investment banker with Bank of America Merrill Lynch, first indicated he would launch an Indonesia fund and put in $25 million of his own money. He has created Yawadwipa, a merchant bank, to manage the vehicle and also provide a range of corporate advisory services.
In addition, Prasetyo Singgih, senior partner at Singgih & Partners, a Jakarta-based law firm, has been appointed COO and general counsel to Yawadwipa.
"We are disciplined problem solvers focused on delivering results for clients through intellectual and equity capital while always aligning interests," Holm said in a statement. "The collective attributes of our partners, both executive and non-executive, uniquely differentiate us, though we humbly accept our position as a new contributor. We have high respect for a number of firms and individuals in the market today and look forward to working with them in the future."
Indonesia has emerged as a fundraising hotbed in the last 12 months. Established players such as Saratoga Capital and Ancora Capital have vehicles in the pipeline as do a host of new entrants.
KV Asia is targeting a $500 million Southeast Asia fund, while Falconhouse hopes to raise $300 million. Capsquare Asia Partners, Forte Capital, Fairways Capital and Mahanusa, a domestic investment bank, are also either fundraising or have vehicles in the pipeline.
Last year Northstar Pacific reached a final close of $820 million on its third fund. The private equity firm originally targeted $500 million for the vehicle and set a hard cap of $750 million. Northstar's second fund, which closed in 2010, raised $285 million.
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