<article><p>German development finance institution DEG has significantly increased its Asia exposure by investing about $454 million in Q4 of 2018 alone, as against a cumulative investment of $115.06 million in the three preceding quarters.</article>

<p>German development finance institution DEG has significantly increased its Asia exposure by investing about $454 million in Q4 of 2018 alone, as against a cumulative investment of $115.06 million in the three preceding quarters.</p>
<p>DEG, a subsidiary of KfW Group, invested in 21 companies across India, China, Southeast Asia and other Asian nations during the fourth quarter of last year, according to information available on its website. The investments were a mix of private equity, co-investments, and debt financing.</p>
<h3>DEG backs six PE funds</h3>
<p>As many as six Asian private equity companies bagged $92.75 million from DEG during the quarter. Quadria Capital Fund II bagged the highest funding worth $30 million followed by India’s Ascent Private Equity Trust ($17.06 million) and Hong Kong&#8217;s Clearwater China Investments Ltd ($15.9 million).</p>
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	<th class="column-1">Company    </th><th class="column-2">Investment (in $million) </th><th class="column-3">Country</th>
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	<td class="column-1">Banyan Tree India Growth Capital </td><td class="column-2">11.37   </td><td class="column-3">India</td>
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	<td class="column-1">Ascent Private Equity Trust  </td><td class="column-2">17.06 </td><td class="column-3">India</td>
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	<td class="column-1">Fulcrum Fund III</td><td class="column-2">11.37 </td><td class="column-3">India</td>
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	<td class="column-1">Quadria Capital Fund II (PE)  </td><td class="column-2">30</td><td class="column-3">Singapore, India</td>
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	<td class="column-1">Triple P SEA Financial Inclusion Fund  </td><td class="column-2">7.05 </td><td class="column-3">Singapore</td>
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	<td class="column-1">Clearwater China Investments Ltd</td><td class="column-2">15.9  </td><td class="column-3">Hong Kong</td>
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<p>Quadria Capital, which is focused on the healthcare sector in South and Southeast Asia, started raising the second fund in August last year. A VCCircle report in August said that the new fund was is targeting to raise $500 million. The firm closed its first fund at $300 million. The debut fund made nine investments, of which five were in India. These included hospital chain Medica Synergie Pvt Ltd, Asian Institute of Gastroenterology, Concord Biotech Ltd, and Health Care At Home India Pvt Ltd, among others.</p>
<p>The firm has assets under management exceeding $1.5 billion and investments in 18 companies across the Asia-Pacific region .</p>
<p>Meanwhile, DEG&#8217;s investment in Clearwater Capital was aimed at expanding access to finance for private sector led affordable housing projects. In August DEALSTREETASIA reported that the firm is raising a new investment fund. Clearwater was acquired by Fiera Capital Corporation in March last year, and has $1.4 billion in assets under management.</p>
<h3>India leads Asia Investments</h3>
<p>DEG invested about $172.93 million in eight Indian companies in the said period. These included Dewan Housing Finance Corporation Ltd, India Housing Fund, Fulcrum Fund III, Banyan Tree India Growth Capital, and Reliance Homes Finance Ltd, among others.</p>
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	<th class="column-1">Country</th><th class="column-2">Company</th><th class="column-3">Investments ($million)</th>
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	<td class="column-1">India</td><td class="column-2">Dewan Housing Finance Corporation Ltd                   </td><td class="column-3">40</td>
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	<td class="column-1"></td><td class="column-2">Dewan Housing Finance Corporation Ltd                   </td><td class="column-3">25</td>
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	<td class="column-1"></td><td class="column-2">Banyan Tree India Growth Capital                             </td><td class="column-3">11.37</td>
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	<td class="column-1"></td><td class="column-2">Fulcrum Fund III                                                            </td><td class="column-3">11.37</td>
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	<td class="column-1"></td><td class="column-2">Giriraj Renewable Pvt Ltd      </td><td class="column-3">25.48                                                 </td>
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	<td class="column-1"></td><td class="column-2">Reliance Homes Finance Ltd                                       </td><td class="column-3">34.12                                                  </td>
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	<td class="column-1"></td><td class="column-2">Ascent Private Equity Trust                                          </td><td class="column-3">17.06                                                    </td>
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	<td class="column-1"></td><td class="column-2">Incred Wholesale Banking NBFC Ltd</td><td class="column-3">8.53                                                    </td>
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	<td class="column-1">CHINA/HONG KONG</td><td class="column-2">Clearwater China Investments Ltd</td><td class="column-3">15.9</td>
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	<td class="column-1"></td><td class="column-2">China Water Affairs Group Ltd                                                                              </td><td class="column-3">50</td>
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	<td class="column-1"></td><td class="column-2">Frankishche Pipe-Systems &amp; Components (Changshu) Co Ltd                       </td><td class="column-3">6.82</td>
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	<td class="column-1">SOUTHEAST ASIA</td><td class="column-2">Quadria Capital Fund II L.P                                                      </td><td class="column-3">30</td>
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	<td class="column-1"></td><td class="column-2">Triple P SEA Financial Inclusion Fund                                  </td><td class="column-3">7.05</td>
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	<td class="column-1"></td><td class="column-2">Thanh Thanh Cong Bien Hoa Joint Stock Company          </td><td class="column-3">28.43</td>
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	<td class="column-1"></td><td class="column-2">Tam Tri Medical JSC (TTMed)                                                  </td><td class="column-3">8.3</td>
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	<td class="column-1"></td><td class="column-2">PT Sulfindo Adiusaha                                                                 </td><td class="column-3">30</td>
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	<td class="column-1"></td><td class="column-2">Rent 2 Own Holdings Pte Ltd                                                    </td><td class="column-3">2.5</td>
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	<td class="column-1"></td><td class="column-2">Kiatnakin Bank Plc</td><td class="column-3">50</td>
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	<td class="column-1"></td><td class="column-2">PRASAC Microfinance Institution Ltd</td><td class="column-3">10</td>
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	<td class="column-1">Rest of Asia<br />
</td><td class="column-2">JMS Holdings Ltd   <br />
(Bangladesh)                                                                      </td><td class="column-3">14</td>
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	<td class="column-1"></td><td class="column-2">Meghna Sugar Refinery Ltd (Bangladesh)     </td><td class="column-3">28.22</td>
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<p>DEG started investing in India about two decades ago. Its exposure in the country reportedly stands at over half-a-billion dollars currently. In the past, it has also backed several other Indian mid-market private equity funds including Rabo Equity Advisors, and Ambit Pragma.</p>
<p>Recently, DEALSTREETASIA reported that DEG has committed €10 million (about $11.2 million) to the third fund of private equity firm Fulcrum Venture India LLC. The third fund, Fulcrum Fund III, is a $100-million India-focused vehicle targeting small and medium enterprises (SMEs) in the pharmaceuticals and healthcare sector.</p>
<h3>SE Asia bags $166m investments</h3>
<p>Southeast Asia companies garnered $166.28 million in investments from the German finance institution. Kiatnakin Bank of Thailand bagged the biggest single investment of $50 million in the form of loan in December last year. The funds will be used for on-lending to Thai SMEs.</p>
<p>Meanwhile, Indonesia&#8217;s chemical producer PT Sulfindo Adiusaha has secured $30 million in loan from DEG. The loan has been structured as equity-like mezzanine and is expected to enhance the company&#8217;s equity.</p>
<p>Singapore&#8217;s Triple P SEA Financial Inclusion Fund, which has secured about $7 million, focuses on private equity investments into small- to mid-market insurance and non-bank financial services companies. The fund, established in 2017, is mainly targeted at Indonesia, Philippines, Vietnam, Thailand and Cambodia.</p>
<p>In November, DEALSTREETASIA reported that Triple P Capital is on track to secure a final close for its $120-million Southeast Asia financial inclusion fund in early-2019.</p>
<p>Aside from Clearwater China, the other two Chinese companies to have received investments include China Water Affairs Group Ltd , and China Water Affairs Group Ltd. DEG has been engaged in China since 1985, and the current portfolio comprises financing of over €495 million, according to its website.</p>
<p>Globally, DEG&#8217;s current portfolio comprises about 700 investments in 82 countries. The firm claims to have a portfolio of more than 130 active fund investments and over 100 direct and co-investments.</p>
<p><strong>Also Read:</strong></p>
<p><strong><a href="https://www.dealstreetasia.com/stories/deg-fulcrum-ventures-122392/"><span style="color: #ff0000;">Germany’s DEG backs PE firm Fulcrum Venture India’s third fund</span></a></strong></p>
<p><strong><a href="https://www.dealstreetasia.com/stories/triplep-capital-sea-fund-112033/"><span style="color: #ff0000;">Triple P Capital to close $120m Southeast Asia fund by early 2019</span></a></strong></p>

Germany's DEG has increased its Asia exposure by investing about $454 million in Q4 of 2018 alone, against $115.06 million in the three preceding quarters.

Germany's DEG significantly hikes Asia exposure, backs six PE funds in Q4 2018

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Germany's DEG significantly hikes Asia exposure, backs six PE funds in Q4 2018

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