Tower Capital hits US$250m first close of South-east Asian PE fund

SINGAPORE-BASED Tower Capital Asia has hit the first close of its South-east Asian private equity (PE) fund, Tower Capital PE Fund I, at US$250 million, the firm announced in a press statement on Wednesday.

Investors include a "pre-eminent, international institutional investor" and single family offices from South-east Asia, Tower Capital said.

Founded in 2016, Tower Capital is a South-east Asia-focused PE firm which specialises in mid-market investments. As at end-2020, it was managing institutional funds totalling US$450 million.

The Tower Capital PE Fund I will invest in various sectors, including consumer, education, healthcare, manufacturing and business services. Investments will be made in Singapore and opportunistically in the rest of South-east Asia. The first deal is expected to close this quarter.

Danny Koh, founder and chief executive of Tower Capital, said: "We are very grateful to our investors for their support, which remained unwavering through an unusually difficult fundraising year for general partners globally."

He added: "South-east Asia, led by Singapore, is establishing itself as a market for private equity dealflow in recent years with the rapid creation and maturation of businesses. By investing early into building relationships with South-east Asian business owners, Tower Capital is well-placed to capture buyout opportunities as they arise."

Tower Capital's past deals include the S$269 million privatisation of traditional chinese medicine brand Eu Yan Sang in 2016, and the S$276 million privatisation of logistics firm Poh Tiong Choon in 2017.