CIMB Group and Mitsubishi Corporation launch new ASEAN private equity fund
Kuala Lumpur: CIMB Group (“CIMB”) and Mitsubishi Corporation (“Mitsubishi”) today announced the launch of AIGF LP (ASEAN Industrial Growth Fund, “AIGF” or the “Fund”). This jointly sponsored Southeast Asia-focused private equity fund will be managed by CIMB Private Equity (“CIMB PE”) and Mitsubishi. Development Bank of Japan Inc. (“DBJ”) will join in as a member of the general partnership.
AIGF is a unique platform that 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 will identify and capture the potential synergies that can be derived from the vast business ecosystems of the distinguished partners.
Commenting on the Fund launch, Kenny Kim, Adviser to the Group Chief Executive Officer, CIMB Group said, “We are overwhelmed by the support of our distinguished investors and partners who share our 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.”
To this, Takajiro Ishikawa, Division COO of Asset Management Business Division, Mitsubishi Corporation echoed, “There is 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 assisting them to reach their full potential, both locally and regionally.
At first close, AIGF has reached a fund size of USD130 million sourced from a wide range of investors based in Japan including Hitachi, Ltd., Yamato Kogyo Co., Ltd. and The Toho Bank, Ltd. Shinsei Bank, Limited, a leading diversified Japanese financial institution, will join as a key strategic investor to the Fund.