APAC investors make up bulk of Dymon Asia’s $450m Fund II


South-East Asia-focused manager Dymon Asia Capital has held a $450 million final close on its second vehicle.

The firm launched Dymon Asia Private Equity (S.E Asia) Fund II in September 2017 with a $350 million target and held a first close on $325.1 million in December. Private Equity International understands that the firm later extended the hard-cap target from the initially decided $430 million to $450 million, because of strong demand from new and existing investors.

Sovereign institutions, insurance companies and banks, multi-generational family offices and professional asset managers are investors in the fund, Gerald Chiu, a partner at Dymon Asia, told PEI. The LP base also includes family offices and high net worth investors from Fund I that reupped for Fund II.

In terms of geographic composition of the LP base, Chiu said more than half of capital raised came from Asia-Pacific LPs, a third from Europe and the remainder from the US. Meanwhile, investors in Dymon Asia’s S$300 million ($225 million; €188 million), 2012-vintage debut vehicle, were mainly Asia-based. Heliconia Capital Management, a Temasek subsidiary, was an investor in that fund, along with several unnamed Asian family offices and high net worth investors.

Heliconia did not back invest in Fund II, PEI understands.

Fund II will have the same investment strategy as it predecessor, focusing on both growth and control investments the lower mid-market space or small and medium enterprises in South-East Asia.

Explaining the strategy further, Chiu said: “We now have offices in Singapore, Kuala Lumpur and Bangkok, and because of the multi-country nature of the fund, we decided to raise capital in US dollars instead of Singapore dollars. In the first fund we were more heavily weighted towards Singapore but in Fund II we see ourselves doing more investments in South-East Asia.”

Fund I has been invested in Bangkok-headquartered food company Greenday Group, vending machine company Atlas and preschool operator Nurture Education Group, among others. So far, the firm has exited three investments from Fund I, of which the distributions alone have returned more than capital drawn to LPs, the firm said in a statement. Fund I was generating a net IRR of 30 percent as of December 2017, according to information on the firm’s website.

Dymon Asia manages approximately $5 billion of assets across private equity, venture capital and hedge funds.