PE firm Archipelago Capital eyes $250m for second Southeast Asia fund

The Philippines. Photo by REY MELVIN CARAAN on Unsplash

Singapore-based private equity firm Archipelago Capital Partners is targeting to raise up to $250 million for its latest fund – Archipelago Asia Focus Fund II – that will invest in small and midsized companies in Southeast Asia.

The fund will primarily focus on control situations across three core sectors – consumer goods and services, financial services, and industrials and logistics. It aims to make 7-10 investments in companies in the region, with a specific focus on Indonesia and the Philippines, and Thailand and Malaysia on an opportunistic basis.

The firm’s debut fund closed at $75 million in May 2019.

The International Finance Corporation (IFC), a member of the World Bank Group, has proposed a $25 million equity investment into Fund II.

In its disclosure, IFC said Archipelago’s second fund will deploy 40-50 per cent of its corpus in companies operating in the Philippines. The fund, it added, will provide access to private equity to mid-cap companies in Southeast Asia and will “increase investee growth” through the PE firm’s control strategy.

Last year, Archipelago’s subsidiary, Osmanthus Investment Holdings, completed its acquisition of a 15-per cent stake in One Network Bank Inc (ONB), the rural banking arm of the Philippines’ largest lender BDO Unibank.

Archipelago Capital Partners was founded in 2015 by Jovasky Pang, Kiat Chan, and Eng Khim Lim.

Prior to the establishment of the PE firm, Pang had worked with Fullerton Financial Holdings, an investment arm of Temasek Holdings, while Chan and Lim previously were key members of the corporate finance practice in Southeast Asia at McKinsey & Company.

The Philippines, a primary focus of Fund II, remains a small market for private equity investing as most business owners in the country are still slowly adopting the idea of creating and selling businesses.

Two of the country’s PE investing pioneers are Sierra Madre Capital and Navegar. Sierra Madre raised its first fund – Sierra Madre Philippines I – in 2017 at over $50 million, with just over a quarter of the fund already deployed.

Last year, Navegar made an initial close of its new fund – Navegar II LP – at $87.1 million. The fund invests in middle-market, growth-oriented companies in the country, with a target investment size of up to $18 million. The fund received $20 million from the IFC.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.