Novo Tellus, a Singapore-based private equity firm that focuses on mid-market technology and industrials sectors of Southeast Asia, has reached the final close of Novo Tellus PE Fund 2 at $250 million.
According to a statement from FIRSTavenue the global placement agent in the fundraise, the PE fund was 43% above the fundraising target and attracted global institutional investors, which made up 88% of the fund’s commitment.
Endowments, retirement funds, sovereign wealth, and global fund-of-fund investors represented the vast majority of LP commitments, according to the statement.
As with its predecessor, Fund 2 will target mid-market tech and industrials deals in the region and has already been tapped for two investments.
Fund 1 raised $25 million in 2012 and was fully deployed in 2016. The firm, founded by Loke Wai San in 2011 said its maiden fund delivered 5.6x return and 3.5x net DPI.
The firm launched Fund 2 in early 2019 and reached a first close of $50 million in the second quarter of that year. The fund closed in December despite “formidable challenges with fundraising during a global pandemic,” Loke said.
“We’re pleased that our strategy, our track record and the positive early performance from our first two investments have helped underscore Novo Tellus’ ability to find and build investment value right through the cycle,” according to Loke.
Novo Tellus is active in investing behind themes including 5G, cloud computing, semiconductor, advanced manufacturing, and Industry 4.0 digitalisation.
Last month, the firm signed a conditional placement agreement to invest about $17.7 million in Singapore’s Catalist-listed semiconductor supplier Grand Venture Technology. The investment was made through NT SPV 12, a wholly-owned subsidiary of Novo Tellus PE Fund 2.
Its earlier investments include Singapore-based data centre solutions provider Procurri Corporation; industrial automation firm ISDN Holdings and smart card IC module and test services player NovoFlex.
Novo Tellus now joins a number of Singapore-based PE firms that have raised or are raising funds targeting Southeast Asia. In January, Asia Partners made another close of its debut fund at $282 million.
Singapore-based PE Tower Capital Asia also raised $250 million for its SE Asia-focused fund, Tower Capital PE Fund I, marking the first close of the fund.