Soh Xuan Yong
Soh Xuan Yong
Singapore-based Tower Capital Asia (“the Firm”) concludes the final closing of its maiden blind-pool private equity vehicle, TOWER CAPITAL PE FUND I, LP (“the Fund”).
A total of US$379 million (approximately S$534 million1) has been raised from pre-eminent institutional investors and family offices globally, surpassing the Firm’s original target of US$300 million. The capital collected comprises US$324 million in primary commitments, and US$55 million in co-investment commitments.
The Fund’s mandate is to invest into a portfolio of sector-leading companies within the business services, consumer, education, healthcare and manufacturing sectors in Singapore and, opportunistically, the rest of Southeast Asia. To this end, the Fund has deployed approximately 40% of the capital into three investments since its formation – leading corporate services firm Boardroom Group, ancillary education service provider Indigo Education Group, and English literacy market leader I Can Read Asia.
Post-investment, the Firm works closely with portfolio company sponsors and management to rejuvenate business models and drive long-term value creation based on the principles of regionalisation and digitalisation.
Commenting on this milestone, Mr Danny KOH, Founder and Chief Executive Officer, says, “We are extremely grateful to have done well in the fundraise of our maiden fund. The prevailing private equity fundraising environment has been a challenging one, encumbered by global geopolitical tensions and macroeconomic uncertainties. Despite these challenges, we gained positive momentum with institutional limited partners, who are increasingly looking for quality managers to partner with in this part of the world. Relative to other markets globally, Southeast Asia remains a growth haven with robust fundamentals and an expanding private equity opportunity set. We thank all our investors for placing their faith in the Tower Capital Asia team.”
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 million2) delisting of iconic Traditional Chinese Medicine healthcare brand Eu Yan Sang in 2016, and the S$276 million (approximately US$204 million3) take-private of Poh Tiong Choon, one of Singapore’s oldest logistics companies, in 2017.
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.
1 Based on exchange rate of US$1:S$1.41.
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.