Genesis Alternative Ventures closes $80m for first SEA venture debt fund

Singapore-based private lender Genesis Alternative Ventures said it has closed its US$80 million debt fund for Southeast Asia, which it claims is the first venture debt fund in the region.

The company didn’t specify, however, if this was the first or final close of the fund.

Genesis’ managing team / Photo credit: Genesis Alternative Ventures

Anchored by Singapore’s Sassoon family – a clan known for its retail dealings – other investors in Genesis Alternative Ventures Fund I include Japan’s Aozora Bank, Korea Development Bank, and Hong Kong multiasset investment firm Silverhorn Group. Earlier backers include Indonesia’s CIMB Niaga and Seattle-based global investment impact fund Capria Fund.

Financial institutions, fund-of-funds, and family offices made up about 75% of total commitments from investors across Asia, Europe, the Middle East, and the US, according to a statement.

“Venture debt in Southeast Asia has been thrust into the limelight during the Covid-19 period with entrepreneurs seeking more efficient capital and putting in place additional capital buffers,” said Genesis Alternative Ventures’ co-founder and managing partner, Jeremy Loh.

Citing a study by private market data firm Pitchbook, the company said that venture debt has grown faster than the broader VC market in the US, reaching record numbers in 2019 and 2020. In Southeast Asia, qualified deal flow continues to grow by 31% quarter on quarter on an annualized basis since January last year, Genesis claimed, referring to its internal statistics.

Loh helped establish Genesis in 2019 with Ben Benjamin and Martin Tang, making up a team of Southeast Asian investment veterans. Genesis said it has deployed over US$30 million to date to a portfolio of 12 venture-backed companies across the region, including GoWork, Horangi Cyber Security, and Lynk Global.