KUALA LUMPUR: OSK Ventures International Bhd
(OSKVI) and Affin Hwang Investment Bank Bhd have launched Pothos Fund I, their first dedicated venture debt fund targeting high-growth companies across Southeast Asia.
OSKVI said the three-year fund, managed by Pothos GP Sdn Bhd, will provide debt-equity hybrid financing to revenue-generating companies with proven business models, strong management teams and predictable cash flows.
The fund is also aimed at giving sophisticated investors access to venture debt, an alternative asset class traditionally more accessible to large institutional investors.
OSKVI said venture debt could help companies extend their operational runway and fund expansion while reducing the dilution of existing shareholders compared with equity fundraising.
Pothos Fund I will seek to generate returns through contractual income streams, downside protection features and selective equity participation.
OSKVI chief executive officer Amelia Ong said financing requirements were evolving as companies in the region matured.
“As companies mature, their financing needs evolve, and venture debt provides a valuable option alongside traditional equity funding.
“Through Pothos Fund I, we are not just introducing a new investment product, we are helping to build a more complete funding ecosystem that supports innovation, encourages sustainable growth, and creates long-term value for both businesses and investors,” she said in a joint statement.
Affin Hwang Investment Bank chief executive officer Hanif Ghulam said venture debt was playing an increasingly important role in providing growth companies with capital for expansion while minimising equity dilution.
“Through our partnership with OSKVI, we are combining complementary strengths and deep market expertise to deliver an institutional-quality investment solution that benefits investors while supporting the next generation of Southeast Asian growth champions,” he said.
OSKVI has invested in and exited more than 50 technology and enterprise companies across Southeast Asia over the past two decades.
Pothos GP is a subsidiary of OSKVI, with strategic equity participation from Affin Hwang Investment Bank.
