CAPSQUARE ASIA PARTNERS FUND IIStatus: Approved investment
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The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
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.
What is our 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 do we fund this investment?
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.
What is the Environmental and Social categorization 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.
- Infrastructure, Manufacturing and Services
- Effective date
- Total FMO financing
- USD 15.00 MLN
- FMO NV
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)