Heritas Capital hits first close of US$150m third growth-fund

HERITAS Capital, an investment firm based in Singapore, has hit the first close of its third private equity fund Heritas Growth Fund III at US$60 million. The first close was anchored by the Tsao Family Office and Heritas' parent company IMC Group, founded by late shipping magnate Frank Tsao.

Heritas announced earlier this year its plans to launch a US$150 million Fund III, which will be a pan-Asia impact fund focusing on the sectors of healthcare, education and technology.

The fund aims to back 10 to 15 companies with innovative and impactful solutions aligned with select United Nations sustainable development goals. Ticket sizes for each investment may range from US$5-20 million, targeting high-growth businesses seeking Series B financing and beyond to scale up their solutions and products.

Heritas has deployed US$150 million out of its other growth funds. Its portfolio companies include dental chain Q&M Dental, Indonesian telehealth startup Alodoktor, and Vietnamese K-12 education company BHL Education.

Its latest investment was a follow-on participation in the US$125 million Series C round of Hummingbird Bioscience through Fund II, having been an early backer since the Series A and B rounds via its Heritas Venture Fund.

Fund III was set up as the first sub-fund under a Heritas-managed Variable Capital Company (VCC), a new corporate structure tailored for investment funds using Singapore as a base for fund management and domiciliation.

Heritas will be evaluating additional impact-oriented sub-funds in areas such as venture capital, special purpose acquisition companies (SPACs) and development impact bonds.

"The first close of Heritas Growth Fund III is timely as Covid-19 has widened existing inequalities and devastated lives and livelihood, but also offered the opportunity to reconstruct more sustainable growth paradigms," said Chik Wai Chiew, chief executive officer and executive director at Heritas Capital.

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