Creador in $105m first close

28.08.13 / Author: Drew Wilson, Private Equity International

The Southeast Asia-focused firm has reached a first close about four months after launching Fund II, and aims to attract European and US LPs.

Kuala Lumpur-based Creador has made a $105 million first close on its second fund, according to a source with direct knowledge of the matter.

Fund II was launched in April and is targeting $250 million, Private Equity International reported earlier. Fimeris is acting as a global placement agent.

The first close was largely existing LPs, but the firm believes it will attract North American and European institutional investors, who are showing increasing interest in Southeast Asia as China and India slow, according to PEI’s source.

The firm expects to raise “a little more than $250 million” with a final close in early 2014, he added.

Fund II will emphasise investments in Malaysia and Indonesia, with little exposure to India, where plunging currency combined with slowing GDP growth and a difficult exit environment have soured investor sentiment, founder and chief executive of the firm Brahmal Vasudevan told PEI.

“With India I’ve been warning investors the last two years that the currency will gradually decline, so the [declining rupee] has not surprised us,” Vasudevan said. “The [declining] Indonesian rupiah we believe is more volatility than it is systematic and in the longterm the currency does not worry us.”

Fund I, a $130 million vehicle with a 2012 vintage, is fully invested, he added.

In April, Creador made its first exit from Fund I by selling a partial stake in Malaysia’s OldTown White Coffee restaurant chain for $15 million, for a 2x multiple or IRR of 100 percent, the firm reported.

Creador invests in both listed and unlisted businesses in Southeast Asia. It was launched in 2011 by Brahmal Vasudevan after he left Indian GP, ChrysCapital Partners.