Genesis receives boost from Capria for war-chest

Seeing an absence of venture debt funds in the regional market, Genesis introduced the Genesis Alternative Ventures Fund I in May 2019. The five-year venture debt fund is currently on track to reach its target of US$50 million to US$70 million ($69.7 million to $97.6 million) by early next year.

Jeremy Loh, managing partner of Genesis, has been optimistic that venture debt will become a mainstream source of financing for companies across Southeast Asia.

“We see a robust pipeline of companies coming through and we believe that entrepreneurs value the need for a judicious balance of debt and equity to fund their expansion. Singapore is a major hub for tech start-ups aiming to capture the region’s rapid growth, huge markets and youthful, mobile-savvy consumers,” he says.

As Southeast Asia’s first private debt fund, it has gathered a strong group of investors. Most recently in June, Seattle-based global investment fund Capria was welcomed as a strategic investor. This investment is Capria’s first in Southeast Asia and first in a venture debt fund.

Capria leads the largest network of collaborating fund managers in emerging markets. Currently, it has 24 fund managers with 157 investments across 25 countries, and US$400 million of assets under management (AUM) which is expected to achieve US$1 billion by the end of this year. Capria counts International Finance Corp, Ford Foundation, Vulcan Capital, Omidyar Network and Sorenson Impact Foundation among its investors.

Genesis will leverage Capria’s expertise in impact investing to identify and provide venture financing to companies with meaningful impact objectives such as financial inclusion, sustainable food production, small business digitisation and gender diversity, as they scale across Southeast Asia.

Capria says that it applies the global best practices of impact investment and environmental, social and governance (ESG) management in order to increase the resilience of its portfolio. Capria and its global network aim to deliver profits, while providing capital to address environmental and societal issues, aligning its aim with the United Nations’ Sustainable Development Goals.

Dave Richards, co-founder and managing partner at Capria, says: “The idea of investing for superior financial returns, coupled with sustainable impact, is catching on in Southeast Asia. Capria is proud to partner with Genesis to further this wave.”

“Until recently, ‘impact investing’ was very nascent and mostly associated with concessionary financial returns in Southeast Asia. This has started to change, with more leading funds implementing impact strategies to tap underinvested sectors and companies,” he adds.

As part of Capria’s investment, Genesis will also join Capria Network, the largest network of emerging market fund managers collaborating to deliver market-rate returns to investors as well as scaled impact. Capria also joins a growing list of blue-chip investors in Genesis, which includes Sassoon Investment Corp, family office of entrepreneur Victor Sassoon, and other notable corporates, family offices and high-net-worth individuals across Asia, Europe and the US.

Genesis also has CIMB Niaga, a leading bank in Indonesia, as a strategic partner. The bank made a US$10 million commitment to Genesis last year to fund fast-growth tech companies in Indonesia.