An announcement via press release made by Golden Equator Capital (GEC) revealed that two private capital funds worth US$ 90 million have been successfully funded for the growth capital of an unspecified public listed company in the region. Infrastructure, energy, and financial sector will be the main focus of the company’s freshly raised funds’ utilization.
The funding round was joined by some institutional investors from Japan, Singapore and Korea. The previous investments o the Singapore based fund management company, GEC include Singaporean proptech startup Ohmyhome and Indonesian e-commerce platform Sorabel, and others.
According to the Managing Partner (Private Capital) of Golden Equator Capital, Jacob Jiwan Kim, Asia has historically been a market financed by Western banks, but with these lenders scaling back in Asia in the last decade, the gap in the much-needed growth-financing for Asia’s emerging economies has been growing. At the same time, there is a lot of capital in developed Asian markets such as Japan and Korea that’s looking for investments with stronger returns than their domestic markets. With their strong regional network and market expertise, they are in a good position to curate investment opportunities in Southeast Asia for investors from developed Asian markets.
Kim who has worked for multiple government and financial institutions as a corporate strategy and acquisition specialist in the Asia Pacific region, led both the funds.
GEC is looking to raise a blind fund in the range of US$200M in the year 2020, potentially launching more project funds, post the success of both private capital funds.
The private capital funds will be covering private debt and mezzanine financing to provide growth capital for acquisitions and business expansion purposes; focusing on companies and projects in Southeast Asian region.
Kim further explained that Asia will be a strong source of growth for the global economy by the next five years. This will be driven by finance, energy technology and infrastructure. Asian private debt markets offer an untapped reserve of opportunity, especially the emerging Asian markets against the more mature and competitive Western markets. Singapore can be used as a base to continually connect the markets in the Southeast Asian region with the broader Asia Pacific region, through our Golden Equator Group’s deep networks in these markets he concluded.
Nancy Lojas has a Pharmaceutical background. She is pursuing a Masters Degree from the University of Toronto and loves to write about research, discoveries & trends in the Healthcare sector.