Soh Xuan Yong
Soh Xuan Yong
Singapore-based Tower Capital Asia (“the Firm”) announces today a first closing on its Southeast Asia-focused private equity fund, TOWER CAPITAL PE FUND I, LP (“the Fund”) at approximately US$250 million¹.
The Fund’s first-closing investors include a pre-eminent international institutional investor and highly respected single family offices from the Southeast Asian region.
Marking the occasion, Mr Danny KOH, Founder and Chief Executive Officer, says, “We are very grateful to our investors for their support, which remained unwavering through an unusually difficult fundraising year for general partners globally. The closing of the Fund marks many firsts for us, but our earliest days as a modest team spun out from a large global firm will never be too far behind us. Authenticity, purpose and a respect for human relationships have guided us to where we are, and we will continue to live by these values even as the Firm grows.”
The Fund will invest into a portfolio of companies across a variety of sectors, including consumer, education, healthcare, manufacturing and business services, from Singapore and opportunistically the rest of Southeast Asia. Such companies will typically feature high organic growth rates, and possess the potential to become regional or even global market leaders in their respective spheres. The Firm, together with its panel of deeply experienced senior advisors, seek to work closely with sponsors post-investment, rejuvenating established business models and driving value creation for the long term.
“Southeast Asia, led by Singapore, is establishing itself as a market for private equity dealflow in recent years with the rapid creation and maturation of businesses. By investing early into building relationships with Southeast Asian business owners, Tower Capital Asia is well placed to capture buyout opportunities as they arise,” adds Mr KOH.
Founded in 2016, Tower Capital Asia has within the last few years cemented its position as a leading Southeast Asian private equity firm with the unique ability to originate highly proprietary mid-market investments not accessible by other market players. Its landmark investments include the S$269 million (approximately US$197 million)² privatisation of iconic Traditional Chinese Medicine healthcare brand Eu Yan Sang in 2016, and the S$276 million (approximately US$204 million)³ take-private of Poh Tiong Choon, one of Singapore’s oldest logistics companies, in 2017.
The Fund expects to close its first investment in the first quarter of 2021.
1 Not including limited partner co-investment amounts.
2 Market capitalisation as at date of announcement; exchange rate of US$1:S$1.37.
3 Market capitalisation as at date of announcement; exchange rate of US$1:S$1.35.
Established in 2016, Tower Capital Asia is a leading mid-market private equity firm based in Singapore. Backed by global expertise and anchored by Asian values, the Firm has led ground-breaking investments in the privatisation and/or buyout of iconic Southeast Asian businesses, in close partnership with business sponsors. The companies backed by Tower Capital Asia are typically under half a billion US dollars in enterprise value, and display strong organic growth metrics as well as market-leading potential. As of September 2022, the Firm manages institutional funds across all vehicles totalling nearly US$500 million, or approximately S$700 million. For more information on the firm, please visit www.towercapitalasia.com.