Japan’s largest trading company Mitsubishi Corporation, together with CIMB Group and Development Bank of Japan Inc (DBJ), has announced the launch of a private equity fund, called ASEAN Industrial Growth Fund (AIGF), today.
Headquartered in Singapore, AIGF will be a private equity platform providing growth capital to the middle market in Southeast Asia particularly in Indonesia, Malaysia, Singapore and Vietnam.
It intends to realise the intrinsic value of portfolio companies and maximise returns by leveraging Mitsubishi Corp’s vast business ecosystems and management know-how, CIMB’s broad customer base and financial expertise as well as DBJ’s private equity experience in the ASEAN region.
According to ACN Newswire, AIGF had its first closing at $130 million with Shinsei Bank Limited as a strategic investor. Other leading Japanese industrial companies and institutional investors including Hitachi Ltd, Yamato Kogyo Co and The Toho Bank Ltd also joined the first round.
The fund is aiming to reach approximately $200 million over the next 12 months.
Mitsubishi Corp is currently expanding its activities far beyond its traditional trading operation as it diversifies its business from natural resources development to investment in retail, industrial manufacturing, infrastructure and financial products.
AIGF will act as the core platform in Southeast Asia for its private equity business, which will cover from small caps to large corporations.