Indies Capital Partners makes first close of second fund to target late-stage tech firms in SE Asia

Photo: Colin Watts / Unsplash

Alternative asset management firm Indies Capital Partners has announced the first close of its second fund, Indies Strategic Technology Fund II, L.P (ISTF II).

The fund has secured commitments of more than 70% of the target $80 million fund size, according to Indies Capital.

Its partner Harold Ong told DealStreetAsia that about 30% of the fund has already been deployed in five companies in Singapore, Indonesia, and Thailand.

Ong added that the firm expects to firm up investments in three to four more companies in the next few months.

In May, DealStreetAsia had reported that the firm is expecting to raise $100 million targeting late-stage tech companies in Southeast Asia.

ISTF II, which is expected to have about 15 companies in its portfolio, has a strategy similar to that of its predecessor, Indies Pelago Investments, which raised over $70 million in September 2019.

The private close-ended funds are focused on opportunities in the top technology companies in Southeast Asia, which have a valuation of $500 million and above.

The strategy offers investors diversified exposure to these companies at attractive valuations and a shorter exit horizon.

The funds, which take secondary share sales at discounts to current valuations, also offer the companies’ existing investors and founders intermediate liquidity, Ong said.

The first fund is fully deployed into 15 companies, and features 3 decacorns, 5 unicorns and 5 centaurs in its portfolio, Indies said. About half of the portfolio companies are in Indonesia.

Its portfolio companies include regional e-commerce enabler aCommerce, Indonesian online marketplace Bukalapak, and ride-hailing giant Grab, which are set to be publicly-listed companies.

“Southeast Asia is one of the world’s fastest-growing internet markets, underpinned by favourable demographics and strong economic fundamentals. Increasing digitisation, rising consumption, and rapid development of the region’s tech ecosystem represent an exciting investment opportunity. With the exit market for the ecosystem’s first wave of unicorns actively taking shape, this is an optimal time for entry,” said Pandu Sjahrir, managing partner at Indies said in a statement.

Founded in 2009, Indies Capital Indies is an alternative asset manager focusing on Southeast Asia, particularly Indonesia. To date, the firm has invested more than $1 billion into the region.

The investment firm, led by managing partners Denny Goenawan and Pandu Sjahrir, also runs a US dollar-denominated private credit strategy. In Q4 2020, it did a second close on its Indies Special Opportunities Fund III focusing on private credit, with $118 million in commitments.

Aastha Maheswari and Michelle Teo contributed to this story.

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.