South East Asia-centered venture capital funds have secured $500 million (approx INR 3,578 crore) in the first half of 2019, says a report by Preqin, an alternative assets tracker.
While, the buyout and growth funds of the SE Asian venture funds have matched last year’s total.
The report further revealed that in 2019 so far, six funds have secured another $500 million, putting 2019 on course to match the previous year.
Besides, ASEAN (Association of Southeast Asian Nations)-focused venture capital fund-raising hit a record in 2018 with 17 funds securing $0.9 billion.
“Southeast Asia presents a wealth of opportunities to private equity and venture capital investors, and clearly many of them are starting to take an increased interest in the region. With several large cities on the global stage, and governments that are encouraging entrepreneurship and technological innovation, these countries make fertile ground for venture capital investment in particular. But the fractured regulatory environment can pose a challenge for investment, and investors characterize it as ‘diverse’, ‘fragmented’ and ‘segmented’. Alongside that, political uncertainty in some corners may be putting a brake on larger scale buyout investment, and it remains to be seen whether domestic investors will turn to the asset class in greater numbers. However, as investments and appetite are increasing in the region the future seems bright for ASEAN private equity,” said Ee Fai Kam, Head of Asia Research & Operations, Preqin.
Furthermore, with a target of $8.5 billion in capital, there are 70 ASEAN-focused funds, which are currently, present in the market. And, a large proportion of the interest in the region comes from international investors.
In fact, about 84 per cent of the known investors in ASEAN-focused funds are based outside the region.