Project detail - Capsquare Asia Partners Fund II

Capsquare Asia Partners Fund II

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Who is our client

Capsquare Asia Partners is a private equity firm specializing in buyout investments, headquartered in Jakarta, Indonesia. The firm invests in consumer driven segments such as consumer goods, retail, education and healthcare. Potential targets are companies active in the Southeast Asian region, especially Indonesia, within the lower middle-market space.

Funding objective

The Indonesian economy exhibits indicators of robustness with strong and stable GDP growth. There is high growth potential in the future as it is the 4th most populous country in the world with favourable consumption driven demographics and PE under penetration in the lower mid-cap market. This fits well with the strategy of Capsquare Asia Partners Fund II (“Fund II”); investing in consumer driven lower mid-cap companies in Indonesia.

Why we fund this project

Through investing in Fund II, FMO provides growth capital to companies in Indonesia that serve the emerging middle class and which at the same time have limited access to capital. By providing access to scarce capital, we contribute to economic growth that will lead to job creation and increases in tax revenues (through investee companies increasing revenues). Additionally, development impact will be achieved by setting international standards for manufacturing.

Environmental and social rationale

Capsquare has adhered to all local standards and introduced all required ESG standards in the past. Currently, Fund II is closely supervised by Paterson Consulting in establishing their ESMS and reporting and with FMO and other DFIs joining as LPs, is implementing reporting and proper administration of its E&S efforts.

Region
Asia
Country
Indonesia
Sector
Infrastructure, Manufacturing and Services
Signing date
12/14/2017
Total FMO financing
USD 15.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B