Southeast Asia and India-focused private equity (PE) firm Creador has reached the first close for its Fund III at US$415 million, falling US$35 million short of its initial target at US$450 million.
This latest round of fundraising has seen different investors varying from endowments, pension funds, family offices, international fund of funds (FOF) as well as a development bank, according to Edwin Cheah, the Director of Creador.
The private equity firm, based out of Malaysia, Mauritius, India and Indonesia in its previous two funds has raised a funding amount of US$130 million and US$331 million respectively.
“The sectors that Creador III will focus on are consistent with Creador II,” Cheah said. “But the businesses that we are excited about are ones that sell from one to many, B2C businesses that are targeting a broad base of consumers.”
In particular, the company will be looking at three investment themes – financial, consumer and business services. With examples of financial services being banks and finance companies, consumer services examples including branded products, media, retail, healthcare, and education while business services refer to B2B services, payment processing.
Established in September 2011, Creador is founded and headed by former ChrysCapital managing director Brahmal Vasudevan. On its global advisory board are other noteworthy former Malaysian corporate captains like Krishnan Tan and Dr. Thillainathan Ramasamy, as well as former Indonesian finance minister Dr. Ir Bambang Subianto.
The company’s Malaysian portfolio includes data and analytical tools provider CTOS Holding Sdn Bhd, medical and allied health education provider Asiamet Education Group Berhad and retail pharmacy chain RedCap Pharmacy.
While in Indonesia, the company has picked stake in companies like financing firm BFI Finance, TV operator MNC Sky Vision and cereal player Simba Indosnack Makmur.
Its India investments include Murugappa Group’s NBFC Cholamandalam Finance, Repco Home Finance, tile maker Somany Ceramics and PC Jewellers.
With this new fund, the Malaysia-based company is also planning to invest in newer markets, such as the Philippines and Sri Lanka, apart from its existing target markets Indonesia and Malaysia in Southeast Asia, and India.
“We are exploring opportunities in the Philippines and Sri Lanka and these new markets will be no more than 10% of the fund,” Brahmal Vasudevan, the founder and chief executive officer of Creador said.
“We are still working on the deal opportunities in Indonesia and will disclose further details once able,” he added.
By Vivian Foo, Unicorn Media