Alternative asset management firm Indies Capital Partners is set to close its second tech fund at $125 million, higher than the original target, by the first quarter of 2022.
The firm has already raised over $100 million of the total corpus, Harold Ong, partner of Indies Capital Partners, told DealStreetAsia in an interaction.
“We plan to close the fund once we are close to or at the hard cap of $125 million. Our target was $80 million, but we have now exceeded $100 million.”
The firm has already invested in 10 companies from Indies Strategic Technology Fund II (ISTF II), since its first close in July 2021 and its portfolio companies include last-mile delivery startup Sicepat; e-commerce behemoth Bukalapak; and Sociolla, an omnichannel retailer of beauty products.
While Indies Capital Partners typically prefers to invest in the range of $2-10 million, it has also parked capital in larger amounts in companies alongside co-investors.
The firm keeps a sector-agnostic approach, even as it has clocked quite a few investments in the digital space.
“We are investing across sectors that we believe will resonate with the Southeast Asian digital consumer by simplifying and democratising access. These could be businesses that are e-commerce-related or are in the fintech space, or those that drive B2B digitisation and enablement in areas such as e-logistics, infrastructure SaaS,” Harold said.
“While the new fund is broadly focussing on similar sectors and has the same strategy, the performance of our first fund made capitalraising for fund 2 much easier,” Harold added.
The firm’s existing limited partners (LPs) are understood to have supported its fundraising exercise for ISTF II, thereby providing approximately 70-80% of the capital.
In May, DealStreetAsia had reported that Indies Capital Partners is expecting to raise $100 million targeting late-stage tech companies in Southeast Asia. ISTF II is looking to build a portfolio of about 15 companies, similar to that of its predecessor.
Its first fund has been fully deployed into 15 companies and features 3 decacorns, 5 unicorns and 5 centaurs in its portfolio. About half of the portfolio companies are in Indonesia.
Apart from Bukalapak (a portfolio company of both tech funds of Indies), the firm has funded regional e-commerce enabler aCommerce, and ride-hailing giant Grab, among others, from its previous fund. Both the companies are looking to make their public market debut soon.
Founded in 2009, Indies Capital Partners is one of the earliest private credit-focused managers established in Southeast Asia. Over the years, it spun its business to foray into venture debt and structured equity as well to invest in the burgeoning startup ecosystem across the region, with a special focus on Indonesia.
Currently, its assets under management (AUM) stand at over $9o0 million, according to sources. In the fourth quarter of last year, it secured more than $120 million in commitments for Indies Special OpportunitiesFund III. It plans to close the fund by the end of this year at $130-150 million in commitments. Its predecessor – Indies Special Opportunities funds were ISO II and ISO I, which raised $145 million and $100 million, respectively.
In the tech space, the firm also runs Indies Pelago Investments for which it raised over $70 million to invest exclusively in Southeast Asia’s tech sector in 2019.
While ISTF II sems to be an extension of Indies Pelago investments, it is slated to focus on mid to late-stage deals in Southeast Asia.
Among other tech funds that have recently closed funds include Jakarta-headquartered Alpha JWC, which secured a total of $433 million to invest in startups across Southeast Asia. Meanwhile MDI, and Kejora Capital – both headquartered in Indonesia – are also in the process of raising funds to invest in Southeast Asia. In Singapore, Tanglin Ventures is set to close its over $100-million fund.