Asean Industrial Growth Fund
CIMB Group and Mitsubishi Corporation have launched an Asean Industrial Growth Fund (AIGF) worth US$130 million (Bt4.2 billion).
This jointly sponsored Southeast Asia-focused private equity fund will be managed by CIMB Private Equity and Mitsubishi. The Development Bank of Japan will join in as a member of the general partnership.
AIGF seeks to match the growing interest of Japanese corporates for Asean business opportunities to the strong demand for Japanese expertise among Asean corporations. The fund aims to identify and capture the potential synergies that can be derived from the business ecosystems of the partners.
At first close, AIGF reached a fund size of $130 million sourced from a wide range of investors |based in Japan including Hitachi, Yamato Kogyo Co, and Toho |Bank. Shinsei Bank, a diversified Japanese financial institution, will join as a key strategic investor to the fund.
Kenny Kim, adviser to the CIMB Group chief executive officer, said the company was overwhelmed by the support of its investors and partners who shared its belief and confidence in Southeast Asian investment opportunities.
‘Robust growth’
"We are optimistic that our regional economy will continue to demonstrate robust growth, leading to the continued rise of the middle class, who will demand better products and services. These factors are the key drivers of our investment thesis for AIGF," Kim said.
Takajiro Ishikawa, chief operating officer of the asset management business division, Mitsubishi Corporation, added that there was tremendous interest from Japanese businesses to expand into Asean given the economic and geopolitical attraction.
"We are excited about the partnership with CIMB and the opportunities that this platform can offer by bringing the strengths of Japan and Asean together."
The fund will target middle-market opportunities that are expected to benefit from urbanisation, industrialisation and improved infrastructure development, as well as the burgeoning demand for new and improved services.
AIGF will focus on well-established companies and will seek to generate returns by working closely with management teams as well as playing an active role in helping them to reach their full potential, both locally and regionally, its principals say.
