Global impact investment firm Capria has announced a partnership with the Australian Government’s Department of Foreign Affairs and Trade (DFAT) to expand its investment platform into the Southeast Asia region.
Along with DFAT’s Scaling Frontier Innovation Program, Capria will be leveraging its emerging market experience in Africa, Latin America, and India to form partnerships with regional fund managers that specialise in investing in small, fast-growing businesses, it said in an announcement released on July 9.
“With the DFAT partnership, we are expanding our unique model of investing and partnering on a long-term basis with selected Asia fund managers to scale up their investment programs leveraging the capabilities of a global network of similar funds to deliver superior returns and scaled impact,” said Dave Richards, Co-Founder and Managing Partner, Capria.
According to Capria, small, fast-growing businesses (SGBs) have an immense impact as the growth drivers of emerging economies in Southeast Asia including Indonesia, Philippines, Vietnam, Myanmar, and other countries. They are facing many challenges scaling up starting with access to sufficient risk capital.
“We are excited to partner with Capria to build critical support for growing investment flow to promising early-stage businesses in Southeast Asia,” said Stephanie Kimber, Scaling Frontier Innovation Manager from DFAT’s innovationXchange, adding that Capria’s innovative model leverages their experience from Africa and Latin America.
Over the next two years, the US-based investment firm will partner with and invest in up to five first-time and experienced fund managers in Southeast Asia, each of which will invest in 5-10 small and fast-growing businesses per year going forward. These local investors will be deploying capital via private equity and mezzanine debt structures typically investing under $2 million per investment, it stated.
Capria is considering both single and multi-sector funds targeting healthcare, education, financial services, logistics, e-commerce, and more. Capria is scouting for fund managers in Southeast Asia and an additional fund manager in India to strengthen its presence in the region, from where it aims to get almost a third of its business in the next few years. There are eleven fund managers in emerging markets in Capria Network at present, that are aiming to collectively raise $200 million in funding by December 2018. Capria itself is in the process of reaching the first close of its $100-million fund.