The financing targets companies in the manufacturing, health care, financial services, education, business services, and consumer sectors across Southeast Asia. Photo credit: ADB.
ADB aims to help improve access to financing for mid-sized companies in Southeast Asia where the availability of equity capital is limited for these kind of companies.
The Asian Development Bank (ADB) signed a $15 million equity investment in KV Asia Capital Fund II LP, a private equity fund managed by KV Asia, to provide growth capital to companies in the health care, financial services, education, manufacturing, business services, and consumer sectors across Southeast Asia.
“Through KV Asia II, ADB will help improve access to financing for mid-sized companies in Southeast Asia where the availability of equity capital is limited for this size of companies,” said Director of Investment Funds and Special Initiatives at ADB’s Private Sector Operations Department Janette Hall. “The financing will help companies to scale, acquire new customers, expand into underpenetrated markets, and provide high quality and efficient services that help countries to accelerate progress on Sustainable Development Goals (SDGs).”
KV Asia has demonstrated an ability to identify and support promising and talented business leaders and foster a new generation of entrepreneurs in Southeast Asia. ADB’s investment will help the fund enhance its management of environmental and social issues, implement energy efficiency measures to reduce its carbon footprint, and promote opportunities for women and girls. ADB’s private equity fund investments help ensure that best practice environmental, social, and governance investment and other standards are taken up by the market.
Established in 2010, KV Asia has raised approximately $450 million in committed equity capital across two funds dedicated to investing in growth companies in Southeast Asia.
ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.
This article was first published by ADB on 8 September 2022.
