The Asian Development Bank (ADB) has signed an equity investment of up to $30 million in Growtheum Capital Partners SEA Fund I LP to provide capital to socially responsible mid-market South East Asian companies poised for growth in the financial services, healthcare, education, digital services and consumer sectors .
This is the first Growtheum fund, and will help drive the growth of middle-market companies in countries with rapid population growth, helping to create development benefits, including new jobs, higher revenues and higher tax revenues.
“The rapidly growing economies of Southeast Asia offer tremendous opportunities, but can also hide inequalities such as access to affordable healthcare, education and financial services,” said Janette Hall, Director of the Investment Funds Division at the Private Sector and ADB Special Initiatives.
“By partnering with the Growtheum business management team and investing in GCP SEA Fund I, ADB will help fill some of these gaps. This investment will support profitable businesses to scale strategically and responsibly, while driving inclusive job creation, especially for women.”
The GCP SEA Fund I aims to make 8-12 equity investments in mid-market companies of $50-125 million each, and up to $250 million for larger operations that require co-investment capital.
ADB supports Cambodia’s energy transition program
The ADB’s participation will catalyze new institutional capital from third parties to help the fund reach its target size of $600 million to $800 million.
Created in 2021 and headquartered in Singapore, Growtheum is a private equity firm investing primarily in Southeast Asia.
To date, Growtheum has raised more than half of the $600 million to $800 million anticipated for its first fund dedicated to investing in growth companies in Southeast Asia.
