Singapore investors channeling private equity to Myanmar SMEs
CREDERA Group, a Singapore private equity (PE) firm, is raising a $100 million PE fund to invest in greenfield ventures in the finance, manufacturing and consumer product sectors in Myanmar, according to DealStreetAsia
The PE firm is currently in advanced talks with stakeholders in those areas and “a lot of the deals are getting closer to fruition”, Gaurav Manghnani, CEO of Credera Group was reported as saying.
Despite over 250 microfinance institutions and banks in the country, small and medium enterprises (SMEs) in Myanmar often face challenges in obtaining the funds they need to expand owing to stringent bank loan regulations and under-developed financial infrastructure.
It is this gap in the SME lending space that Credera Group is betting on. Currently, the PE firm is already in the process of teaming up with an Indian non-banking financial company as a strategic partner to co-invest and set up an equipment finance venture in Myanmar.
It also sees opportunities in the import substitution space, saying that the most lucrative investments can be found in this sector. It is currently looking to set up a sugar factory in Karen State and is also been evaluating possible investments in the cement manufacturing sector.
Education and healthcare are two other spaces of high interest to Credera Group. DealStreetAsia reports that the PE firm has looked into a couple of deals in the higher education space and is likely to expand its venture with a young professional team of entrepreneurs of Myanmar.
In the healthcare space, Manghnani said Credera is more interested in niche services than hospitals. It is reported to be searching for a potential local partner to invest in this space as well as operating partner that understands the dynamics of Myanmar.
A worker at a Myanmar pharmaceutical factory. Singapore private equity firm Credera Group is raising funds to invest in sectors including healthcare.