Sin­ga­pore in­vestors chan­nel­ing pri­vate eq­uity to Myan­mar SMEs

The Myanmar Times - - Business - THE MYAN­MAR TIMES busi­ness@mm­

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.

Photo: The Myan­mar Times

A worker at a Myan­mar phar­ma­ceu­ti­cal fac­tory. Sin­ga­pore pri­vate eq­uity firm Credera Group is rais­ing funds to in­vest in sec­tors in­clud­ing health­care.

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