| Country : | MULTI COUNTRIES |
| Type of project : | Equity investment |
A strategic partnership for an Asian investment platform
Background
The aim of this project is to build a co-investment platform - TR Propasia - 100% owned and financed by Proparco. The investment size ranges from USD 10m to USD 20m. This vehicle will have the same legal form as TR Capital and will be managed by the same management company TR&Co. TR Capital is an investment fund created by Paul Robine, in partnership with Group Tikehau, investing across Asia in a diversified manner. The investment team is based in Hong Kong.
TR Propasia will be investing exclusively alongside TR Capital in the selected investments and in equal terms, provided that the investment opportunities comply with Proparco’s geographic and industry mandate.
Objectives
The objective of TR Propasia’s project is to build a regional investment platform. It will contribute to a better risk management while encouraging the creation of new partnerships in Asia. The strategic partnership with TR’s team, based in Hong Kong, allows both parties to complement each other in terms of access to investors as well as investment opportunities.
Description
TR Capital maximum fund size will be USD 75m. It will invest at 70% into Private Equity funds and at 30% into direct investments (Private Equity investments mainly into SMEs). TR Propasia’s investment strategy will be the same as TR Capital, except for the investments not complying with Proparco’s mandate in terms of countries and sectors. The investments will be made through equity, with an average size of USD 5m and with an investment period from 3 to 5 years.
Benefits
The major benefits resulting from this Proparco’s investment can be achieved in the following way:
- Sources of financing’s diversification: Private Equity Funds represent an alternative to bank borrowings for SMEs in Asia.
- Private sector development: good quality investment funds in Asia will assist in fostering private initiatives in these countries. It should contribute to the increase of the hiring of young local graduates.
- Institutional impact on capital investments: this project will encourage the development of capital investments in the region. Proparco’s presence will contribute to the development of investments made by private investors.
- Management skill enhancement: the management team is receiving Proparco’s operational advice in terms of fund management and risk management.
Date and amounts
Beginning: 2008
Financing: Initial investment of USD 10m and maximum of USD 20m.