Exclusive: Dymon Asia PE plans to raise more than $300m for second fund

Dymon Asia
Photo: Dymon Asia Private Equity website

Dymon Asia Private Equity, the PE arm of Dymon Asia Capital, is in talks to raise its second fund, according to two people aware of the development. The firm is learnt to have begun talks with potential investors, or limited partners, to raise more than $300 million for the fund.

Dymon Asia Private Equity did not respond to a DEALSTREETASIA email query on its second fund.

The PE firm’s first fund, Dymon Asia Private Equity (S.E. Asia) Fund was launched in October 2012 and had achieved a final close of S$300 million (about $246 million at that time) in commitments. The fund was backed by Heliconia Capital Management, a wholly owned subsidiary of Temasek Holdings.

The PE fund invests in profitable small and medium enterprises (SMEs) with revenues of S$10-500 million in Singapore and the rest of Southeast Asia. Dymon typically makes equity investments of S$15-50 million in each company in return for minority or majority stakes. Investments are normally structured as buy-outs, growth capital, recapitalization or through hybrid instruments. According to the Dymon Asia Private Equity website, the fund invests in all sectors except real estate, resources and technology startups.

Investments by the Dymon Asia Private Equity (S.E. Asia) Fund include pre-school operator Nurture Education Group (2013), wallpaper and furnishing products distributor Goodrich Global (2013), marine civil engineering and construction firm HSL Constructor (2014), food service provider Select Group (2016) and vegetables and fruit snacks brand Greenday Group (2016).

According to its website, it has so far made one exit – healthcare facilities management firm Asia Integrated Facility Solutions – in 2016. It opened its office in Kuala Lumpur, Malaysia this year.

Dymon Asia Capital was co-founded in 2008 by Danny Yong and Keith Tan and currently manages $5.7 billion across hedge fund, private equity and venture capital assets. Majority owned by its partners, it counts Temasek among its stakeholders. The Singapore state investment firm’s commitments include $500 million in 2014 towards establishing the Dymon Manager Solutions Group, which is primarily focused on creating equity-based strategies.

Its venture capital arm, Dymon Asia Ventures, was set up in 2015. The VC arm is exclusively focused on financial technology, or fintech, startups. In September 2016, this portal had reported that Dymon Asia Ventures had started fundraising for its $50 million debut fund. This portal had also reported that Dymon Asia Ventures was raising a part of its $50-million debut fintech-focused fund on Fundnel, a Singapore-based private investment and equity crowdfunding platform.

In March this year, the VC firm hit the first close of its maiden fund at $20 million. Limited partners in the fund include Digital Ventures, a fintech-focused firm under the umbrella of Thailand’s Siam Commercial Bank (SCB). Dymon Asia Ventures is looking to hit the final close for this vehicle by the year-end. Portfolio companies include blockchain firm Otonomos, financing startup Capital Match, forex-focused 4XLabs and credit management services provider AsiaCollect.

More recently, Bloomberg reported that Dymon Asia Capital is firming up plans to raise an additional $600 million for a stock fund as it expands its equity business. The Dymon Asia Equity Fund oversees more than $400 million, made up of mostly internal capital and money from Singapore state-owned investment company Temasek Holdings Pte, according to the report.

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