FMO proposes $15m investment in Archipelago Capital’s second PE fund

Photo: REUTERS/Beawiharta

Dutch development bank and impact investor FMO has proposed a $15-million investment in the second private equity fund managed by Singapore-based buyout firm Archipelago Capital Partners.

Archipelago Asia Focus Fund II (AAFF II) is a mid-market, control-driven PE fund that seeks to invest across Southeast Asia, specifically in Indonesia, the Philippines, Malaysia, and Thailand.

The fund seeks to tap buyout or significant control opportunities in three sectors – consumer goods and services, financial services, and industrials and logistics.

As of October 2020, the fund has managed to secure 75% of its $250-million target and is expected to close in the first half of this year, its CEO Jovasky Pang told DealStreetAsia in an earlier interaction.

“By investing in AAFF II, FMO intends to support local entrepreneurs and owners of medium-sized companies through providing capital for growth and operational advice with a goal to enhance these businesses’ growth and performance through active ownership,” FMO said in its disclosure.

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

Archipelago Capital Partners was founded in 2015 by Pang, along with Kiat Chan, and Eng Khim Lim. Its first fund had a corpus of $75 million.

LPs who committed to Archipelago’s maiden fund were Pavilion Capital, Sofina, Hanwha, and NH – or Nonghyup, National Agricultural Cooperative Federation – according to a Singapore Venture Capital & Equity Association Quarterly July 2020 newsletter.

Archipelago typically invests in companies that it has tracked for over a year, taking into consideration their sustainability, business models, and products. Companies on its radar are those specialising in food packaging, ready-to-eat products, food processing, and ingredients.

In its disclosure, IFC had earlier indicated that Archipelago’s second fund will deploy 40-50% of its corpus in companies operating in the Philippines.

FMO, meanwhile, is focused on supporting sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs.

The bank has an investment portfolio of $10.4 billion, with a 28% exposure to Asia. It focuses on developing markets, covering sectors such as financial institutions, energy, and agribusiness.

FMO’s average ticket size for investment is 15 million euros ($16.7 million) and it invests across equity and debt.

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.