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Aureos to launch USD250m South-East Asia fund

Aureos Capital, a private equity fund management company focused on Africa, Asia and Latin America, is launching the USD250m Aureos South-East Asia Fund II.

The fund will be the largest pan South-East Asian fund to exclusively target small to mid-cap businesses.
 
It will invest across the South-East Asian region and will seek to make investments of between USD2m and USD10m.
 
The fund will target investments in Indonesia, Malaysia, the Philippines, Thailand, Vietnam, Cambodia and Laos.
 
Sev Vettivetpillai (pictured), chief executive of Aureos Advisers, says: “South-East Asia is well placed to be one of the first regions to fully emerge from the current economic downturn.”
 
“The strength of the region’s economies lies partly in the practical lessons that were learnt from the Asian financial crisis of the late 1990s. This has left the region with low levels of leverage, flexible exchange rates and high foreign exchange reserves.
 
“Combined with the region’s flexible labour markets, many small and middle-market companies are now well positioned for strong growth and profitability, particularly in their domestic and regional markets.”
 
South-East Asian companies remain one of the largest beneficiaries from China’s continued growth as they are a significant part of China’s supply chain, with 40 per cent of the region’s exports directed there.

As dependency on exports to developed countries has decreased, local businesses are now better positioned to benefit from the region’s rapidly growing consumer demand.

Increasing corporate consolidation is expected to create investment opportunities, as marginal players merge or are absorbed in a fragmented market.
 
The fund will be diversified with a primary focus on two market segments: fast moving consumer goods such as retail, restaurant chains and franchises, light manufacturing, distribution and logistics, support services to infrastructure, business services related to information technology, and business process outsourcing; and defensive sectors, including healthcare, education and waste management.
 
The team will be led by Hanjaya Limanto, Aureos’ managing partner in Indonesia, who has 20 years’ experience in private equity, venture capital, marketing and product development gained in the US and Indonesia. 
 

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