The Intellectual Property Office of Singapore (IPOS) and Singapore-based private equity (PE) firm Makara Capital have jointly established the Makara Innovation Fund (MIF) with a corpus of S$1 billion ($717.5 million).
The mandate of the fund is to boost innovation and intellectual property (IP) in the city-state.
The fund is intended to aid innovators and enterprises in translating their concepts into tangible assets.
Makara Capital was founded in 2005 as a joint venture (JV) with Credit Suisse AG but through a move by its founding partners, emerged as an independent entity in 2008.
The Makara Innovation Fund (MIF) will target high-growth enterprises which possess strong IP and proven business models globally which leverage Singapore as a strategic hub for expanding to global markets.
“The Makara Innovation Fund seeks to partner with innovative enterprises, providing capital and market access in order to enable them to compete at a global level,” said Makara Capital CEO Ali Ijaz Ahmad.
With a growing recognition of the role of IP in being a key competitive asset for businesses, according to its website, the fund will invest in “small-to-mid cap companies that demonstrate proven and defensible intellectual property, compelling fundamentals and a strong Pan-Asian growth trajectory.”
It will focus on sectors linked to urban solutions, advanced technologies, fintech, consumer, alternative energy and healthcare. It will target companies with strong managerial talent and will look at an investment size of S$30 to S$150 million per portfolio company with attractive exit potential.
The new fund is part of an initiative under the updated IP Hub Master Plan to support the Committee on the Future Economy’s Report, which identified IP as a key driver of economic growth.
Other initiatives include a memorandum of understanding with the Singapore Business Federation (SBF) to help enterprises innovate and scale up by providing SBF members with IPOS’ suite of services such as training and executive education, as well as reaching out to more than 150 local innovative enterprises over the next three years to provide them with access to local and international IP advisory and management tools.