logo  
HomeAboutSustainableInvestorContact
 
 
d
b
i
m
s
t
 

 


First and foremost, we are a provider of growth capital. Through growth, we intend our capital to achieve some measure of development and betterment of society in our target markets.

Our first 2 funds use mezzanine as a tool to invest directly into companies, usually private companies. Our definition of mezzanine capital is capital that either (i) ranks junior to senior debt and ranks senior to common equity, or (ii) takes elements of debt (can be senior) and equity components in its issuance. However, when it comes to capital structuring and positioning, mezzanine can never replace senior debt. The use of mezzanine is always to supplement equity. Its overall cost will always be cheaper than the cost of equity. Mezzanine is less dilutive, as well.

Our investment parameters are listed below. We invest in the middle market in Southeast Asia. We generally tend to stay away from auctioned deals where we have little pricing leverage. We employ a partnership based approach, so we will never do hostile deals. Our most important qualitative parameter is the creditworthiness and integrity of the management and controlling shareholders - we have a very low threshold and tolerance level for this principle. We will be doubly enthusiastic with companies placing a premium on human capital development and quadruply repelled vice versa. We look to assist our companies in raising their awareness on environment, social and governance matters, thereby increasing the valuation of our investments and mitigating our risks at the same time.

Investment Parameters

  • Minimum investment size: US$7.5 mm
  • Investee size: Minimum revenue US$15 mm or minimum enterprise value US$15 mm
  • Currency: US$
  • Sector focus: None, but no gaming, alcohol and tobacco, defense and projects causing irreversible environmental damage
  • Stage preference: Growth
  • Preferred duration: 3 - 5 years. We do not do bridge loans
  • Typical instruments: Convertible debt, preferred equity, senior debt with warrants
  • Governance requirement: Investees to adopt the CDC Investment Code or adopt own code that is similar or higher in standard

 

Top of Page

 

 

   
  Email
   
  Print