Vickers Venture Partners, a Singapore-based venture capital (VC) firm, is set to hit the first close of its $500 million sixth fund in the first week of October, according to two sources aware of the development.
One source told DealStreetAsia that Vickers has raised $125 million for its first close. A separate source said that two anchor investors contributed $90 million to the pot. Both confirmed that the VC will complete its first close in the first week of October.
Vickers Venture Partners did not respond to email queries seeking details about the fund.
Vickers’s $500-million sixth fund is one of Southeast Asia’s largest VC funds, targeting to invest in 30 to 50 companies in biotechnology, nanotechnology, and artificial intelligence. To date, Vickers has closed five funds totaling $368 million and has invested in over 54 companies globally including Cambridge Industrial Trust, Jingjin Electric, RWDC Industries, and Samumed.
According to documents seen by DealStreetAsia, Vickers’s $81.1-million fourth fund achieved a net internal rate of return of 44% and a net multiple of 42x.
Southeast Asia is enjoying a period of capital surfeit as VCs continue to raise larger and larger funds.
Temasek-backed Vertex Ventures closed a $305-million fourth Southeast Asia and India fund in September, while Eduardo Severin-led B Capital secured $406.1 million for the first close of its second fund in March.
Several Southeast Asian VCs have also expressed interest in launching growth or select funds – aimed at re-investing in high performing portfolio firms that are pushing past the early Series A rounds.
These include Vertex Ventures’s $290-million growth fund, Golden Gate Ventures, and Hanwha Asset Management’s $200-million growth fund, and the $200-million EV Growth Fund – a joint venture between Sinar Mas, East Ventures and Yahoo! Japan.
In June, Gojek backer Openspace Ventures told DealStreetAsia that it plans to launch a $500 million third fund later this year. This will comprise the main fund of $200 million, and a growth opportunities fund of $300 million for select larger limited partners (LPs).
Southeast Asian VCs raised a total of $1.58 billion for new funds in the first half of 2019, according to DealStreetAsia data, and they are on track to top last year’s total of $2.12 billion.
Meanwhile, a separate data available with Preqin and Vertex indicates how Asia’s venture capital market has grown exponentially in size last year, hitting $334 billion in assets under management (AUM) from just $75 billion five years ago.