Philippines: Sierra Madre hits first close of maiden fund at $50m

Visual from company website

Sierra Madre Philippines, a new private equity group, has completed the initial closing of its SME-focused Sierra Madre Philippines I LP Fund at $50 million.

Limited partners who have committed to invest in the vehicle include development finance institutions, Philippine institutional investors, and high net worth individuals,

The Sierra Madre team is investing over $19 million of the initial close commitments, said Sierra Madre partner and co-founder Alasdair Thomson during an interaction with DEALSTREETASIA.

“We expect to make eight to 10 investments over the life of the fund,” Thomson said. He declined to name the LPs.

Sierra Madre is a locally sponsored, locally focused private equity investor that makes growth investments of over $5 million in Philippine SMEs which have a track record of performance and the potential to become leaders in their chosen market segments.

“We have a very robust pipeline of potential transactions, having assessed in excess of 215 investment opportunities in the last two years,” Thomson said. “Of our deal flow, approximately half is in the area of retail, consumer goods and leisure, with over 85 per cent being driven by increasing consumer wealth in the Philippines.”

He added, Sierra Madre team is hopeful of concluding at least two deals this year.

Other members of the Sierra Madre senior team are seasoned PE space investors Danny Lizares, and Martin Lorenzo.

Thomson was a partner at Morgan Stanley Capital Partners and senior principal at Apax Partners in Europe. Lorenzo is the former chief executive of Pancake House and managing director of Del Monte Pacific, while Lizares was the former managing director of the Abraaj Group, and partner of Aureos Capital.

Last August, Sierra Madre disclosed plans of raising up to $120 million in its growth equity fund debut, a 10-year PE fund targeted at small and medium-sized enterprises.

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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.