Creador sees 2x return, 101% IRR on maiden exit

26.04.13 / Author: Andrew Woodman, Asian Venture Capital Journal

Creador has made a partial exit from its investment in Malaysian restaurant chain OldTown White Coffee at a 2x money multiple, representing an IRR of 101%.

The divested stake, representing 45% of the GPs total holding, was said to be acquired by a number of long-only mutual fund providers for a total of around $15 million. Creador said it will continue to retain an interest in the company to see further growth potential in the business.

The firm originally invested MYR45.7 million ($15 million) in the leading restaurant chain, which also has its own brand of instant coffee, in April 2012 for 10% stake interest.

Established in 1999, OldTown comprises two business segments – restaurant outlets and instant coffee. It reported revenues of MYR333 million and net profit of MYR44 million in 2012.

OldTown was the second investment from Creador I, which reached a final close of $132 million in January. The fund, which focuses on investments in India, Malaysia and Indonesia, is now around two thirds depolyed and the firm is already looking at a successor vehicle.