OCBC Closes on S$550M PE Fund For Asian SMEs

Aug 28 2015 | 7:32pm ET

Singapore-based OCBC Bank, has closed on a new S$550 million private equity fund launched in conjunction with its asset management subsidiary, Lion Global Investors.

The venture, which started soliciting investors in November 2014, is aimed at satisfying the growing demand among Asian high-net-worth investors for alternative assets.  

The Lion-OCBC Capital Asia Fund 1 will targets small and medium-sized enterprises (SMEs) that exhibit high growth. The fund will concentrate in four core markets – Singapore, Malaysia, Indonesia and China, where OCBC Bank’s extensive presence, local knowledge and large client base provide access to a ready pool of potential investments.

It is the first time OCBC Bank, through its private equity investment unit Mezzanine Capital Unit, has created a private equity fund investing in SMEs.

The new fund’s target was initially S$400 million, but was upped due to strong demand from investors. The fund reportedly attracted interest from insurance companies, regional banks, sovereign wealth funds and high net worth individuals, including customers of OCBC Bank’s private banking subsidiary Bank of Singapore. 

OCBC Bank was formed in 1932 from the merger of three local banks, the oldest of which was founded in 1912. It is now the second largest financial services group in Southeast Asia by assets.

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