CDC Group, the UK government-backed private equity emerging markets fund of funds manager, is making new commitments totalling USD40m to two private equity funds focused on investment i
CDC Group, the UK government-backed private equity emerging markets fund of funds manager, is making new commitments totalling USD40m to two private equity funds focused on investment in small and medium-sized enterprises in south-east and central Asia.
It has committed USD30m to Kendall Court Mezzanine (Asia) Bristol Fund. This fund aims to raise USD150m for investment in south-east Asia, with a focus on mezzanine growth capital and buyout capital investments in SME companies.
Another USD10m has been committed to Centras Private Equity Fund, which in turn intends to raise USD75m in to invest in SMEs in central Asia, predominantly in the Republic of Kazakhstan.
Brian Lim, portfolio director, Pan-Asia, CDC, says: ‘These investments are made with one of CDC’s key objectives in mind, namely to bring capital to SMEs in less developed emerging economies.
‘Although the Asian private equity industry has grown strongly over the past three years, south-east Asia has seen less of this growth. With the growing migration of interest and capital to China and India, funding sources in south-east Asia have been relatively hard to access especially by SMEs looking for financing.
‘However, mezzanine financing fits the profile of the predominantly family-run businesses in Asia. Having operated and invested in the region for four years, Kendall Court has a strong track record and will continue to capitalise on opportunities.’
Kendall Court is Asia’s first independent mezzanine provider, with a principal focus in south-east Asia. Established in 2004 with a USD90m maiden fund, it focuses on mid-sized transactions for development and buyout capital. Kendall Court seeks to be the premier Asian investment partnership focused on alternative funding in markets/transactions with a superior risk-return profile.
Centras Capital, founded in April 2004, is an investment company in the Republic of Kazakhstan and is targeting commitments of USD75m for Centras Private Equity Fund.
