The Asian Development Bank (ADB) has signed an equity investment of up to $30 million in Growtheum Capital Partners SEA Fund I LP (GCP SEA Fund I, the fund) to provide equity capital to socially responsible, middle-market Southeast Asian companies poised for growth in the financial services, health care, education, digital services, and consumer sectors.
It is Growtheum’s first fund and will help spur the growth of middle-market companies in countries with rapidly growing populations, helping to create development benefits including new jobs, higher incomes, and larger tax revenues.
“The rapid growth of Southeast Asian economies presents huge opportunities but can also mask inequalities such as access to affordable health care, education, and financial services,” said ADB Director of Private Sector Investment Funds and Special Initiatives Division Janette Hall. “By partnering with Growtheum’s dedicated business management team and investing in GCP SEA Fund I, ADB will help to fill some of these gaps. This investment will support profitable businesses to scale strategically and responsibly, while driving inclusive job creation, especially for women.”
GCP SEA Fund I aims to make 8-12 equity investments in middle-market companies of between $50 million and $125 million each, and up to $250 million for larger transactions requiring co-investment capital. ADB’s participation will catalyze new third-party institutional capital to help the fund achieve its target size of $600 million–$800 million.
Established in 2021 and headquartered in Singapore, Growtheum is a private equity firm targeting investments primarily in Southeast Asia. To date, Growtheum has raised more than half of the targeted $600 million–$800 million, for its first fund dedicated to investing in growth companies in Southeast Asia.