ASEAN-focused private equity (PE) firm AIGF Advisors Pte Ltd has closed its second fund, AIGF II LP, at 17.3 billion yen ($126 million), according to an announcement.
The commitments were made by institutional investors in Japan and the ASEAN region, AIGF said.
A PE fund sponsored by Japanese conglomerate Mitsubishi Corporation, AIGF is focused on the small and mid-cap segment in Southeast Asia.
The firm said its second vehicle will continue to support small and middle market companies in the region, which has many such firms looking for growth capital.
AIGF has invested in five companies in Southeast Asia; it exited Malaysian supermarket chain Jaya Grocer last year. Daniel Yong, partner of AIGF, had then said the sale allowed the firm to “realise significant value” for its investors.
Other investments by AIGF include the KFC franchisee in Thailand, flexible workspaces provider KMC Solutions and Meatworld International in the Philippines, and Singapore-based logistics firm BHS Kinetic.
AIGF is not the only PE firm sponsored by a Japanese conglomerate to focus on Southeast Asia. Mizuho Asia Partners, which operates as a subsidiary of Mizuho Corporate Bank, is seeking to raise $350 million for its latest fund, Exacta Asia Investment III, to invest in mid-cap companies in the ASEAN region.
Altair Capital, an affiliate of Tokyo-headquartered buyout firm Polaris Capital Group, is investing out of its maiden fund, having backed Southeast Asia’s largest automotive marketplace Carro, Malaysian grocery retail chain TF Value-Mart, and most recently, corporate solutions firm Xcelerate.
Last year, the Development Bank of Japan and Aozora Bank formed a joint fund, the 2-billion-yen Asia Growth Investment Fund I, to provide capital to SMEs in Southeast Asia.
Advantage Partners is another Japanese buyout firm that has an eye on Southeast Asia. It has funded Vietnam-based fashion retailer Elise, and Malaysia’s metal solution provider EKO Group and home care products manufacturer Plastic Centre. In 2019, Advantage Partners sold a minority management stake to local financial services major Tokyo Century.