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Men thrashing grain. Indonesia
Capsquare Asia Partners, the manager of Capsquare II, is the only fund manager dedicated to Indonesia that focuses on acquiring control / majority stakes in small / medium–sized companies. By becoming a shareholder of Capsquare Asia Partners Fund II (“Capsquare II”), PROPARCO will be supporting private sector development and access to long-term capital for these companies.
Client presentation

Capsquare Asia Partners Fund II (“Capsquare II”) is the second fund managed by Capsquare Asia Partners fully dedicated to Indonesia and exclusively focusing on acquiring control / majority stakes in small / medium–sized companies.
It is the successor fund of Capsquare Asia Partners Fund I (“Capsquare I”), which raised USD 83m in 2013.
This new vehicle has a target size of USD 150m and concluded a first closing in December 2017.

Capsquare’s strategy is based on three pillars:

  • A focus on consumer-driven sectors that benefit from the economic growth of Indonesia such as FMCG, retail, education and healthcare;
  • Investment tickets ranging between USD 15m and USD 30m;
  • Control / majority stakes in order to provide active support to the management of the companies in the portfolio.
Project description

PROPARCO is making a USD 15m equity investment in Capsquare II to finance small / medium–sized companies in Indonesia. The fund’s strategy is to target consumer-driven sectors that benefit from the economic growth of this emerging country.

Project impact

The investment in CAPSQUARE II will support economic and social development in Indonesia.

The project directly contributes to the development of the private sector and the private equity market. It will create jobs and contributes to professionalizing governance processes, as well as environmental and social practices, in the companies supported.

Over the next 5 years, 6,700 direct and indirect jobs will be supported thanks to this investment in CAPSQUARE II.

The Fund also contributes to diversifying capital markets in a geographical area where the private equity remains underdeveloped. In this respect, it promotes access to long-term capital for companies.

15/12/2017
Date of signature of the project
Sectors
Indonesia
Location
Financing tool
13 200 000 Euros
Amount of funding
Equity Investment of USD 15m
Financing details
CAPSQUARE ASIA PARTNERS FUND II, L.P.
Client
CES