KUALA LUMPUR: CIMB Group
and Mitsubishi Corporation have launched the Asean Industrial Growth Fund (AIGF), which is a jointly-sponsored southeast Asia-focused private equity fund to be managed by CIMB Private Equity and Mitsubishi.
The Development Bank of Japan Inc will join in as a member of the general partnership.
CIMB said on Tuesday that the AIGF was a unique platform that seeks to match the “growing interest of Japanese corporates for Asean business opportunities” to the strong demand for Japanese expertise amongst Asean corporations.
It said that AIGF would focus on well-established companies and would seek to generate returns by working closely with management teams as well as playing an active role in assisting them to reach their full potential, both locally and regionally.
“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,” it said in a statement.
At first close, AIGF has reached a fund size of US$130mil sourced from a wide range of investors based in Japan including Hitachi, Ltd., Yamato Kogyo Co., Ltd. and The Toho Bank, Ltd.
Shinsei Bank, Ltd, a leading diversified Japanese financial institution, will join as a key strategic investor to the Fund.
Commenting on the Fund launch, adviser to the CIMB group chief executive officer Kenny Kim said it was overwhelmed by the support of its distinguished investors and partners who shared its belief and confidence in southeast Asian investment opportunities.
“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,” he said.
Mitsubishi asset management business division chief operating office Takajiro Ishikawa said 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,” he said.