US, German development institutions poured $47m into Asia Partners’ inaugural fund

Singapore-based growth equity investment firm Asia Partners announced that the US International Development Finance Corporation (DFC) and the Deutsche Investitions-und Entwicklungsgesellschaft (DEG) have invested US$25 million and US$22 million, respectively, in its inaugural Asia Partners I LP fund.

This is part of the US$384 million total that Asia Partners raised in the final close of the fund earlier this month.

The Asia Partners team / Source: Asia Partners

The fund will focus on the US$20 million to US$100 million investment size range in Southeast Asia, and looks to bridge the “series C or D gap” between early-stage VC firms and public capital markets.

According to Asia Partners, the two  government agencies focused on international development were some of the first to invest in the fund before its final close in February this year.

DFC is the development bank of the US, which partners with the private sector to finance solutions to challenges facing the developing world today. It invests across sectors including energy, healthcare, critical infrastructure, and technology.

Meanwhile, DEG is a federally owned investment organization in Germany. It manages an 8.5 billion euros (US$10 billion) portfolio across 80 countries and provides private sector companies with long-term financing and advises them as they implement their investments.

“Environmental, social, and corporate governance (ESG) considerations are a crucial part of Asia Partners’ investment due diligence process and are closely aligned with the organizational missions of the DFC and DEG,” said Asia Partners’ co-founding partner and investment committee member, Oliver Minho Rippel.

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Asia Partners’ advisory board also includes John J. Wood, the founder of literacy-focused non-profit organization Room to Read.

Correction (March 30, 2021 19:15pm SGT): The headline incorrectly stated that the DFC and DEG were state-owned firms earlier.