Malaysia-based Iris Capital Partners has launched a $37.8 million (RM160 million) venture debt fund focused on domestic and Southeast Asian startups.
Iris Capital Partners is a new fund formed under the Malaysian finance ministry’s Dana Penjana Nasional (DPN) programme. The Malaysia finance ministry-owned Penjana Kapital, institutional and high net worth investors have injected capital into the fund, said Iris in a statement.
The fund will be co-managed by Hanwha Asset Management, making it the South Korean group’s first venture debt partnership in Malaysia. Hanwha’s Kimo Kim and Yuntek Jung, both experienced fund managers at Hanwha Asset Management, have been appointed as partners at Iris Capital.
Dato’ Wan Kamaruzaman Wan Ahmad, who previously held senior leadership positions in Malaysian firms including KWAP in 2013-18, Bermaz Auto, and the Bond and Sukuk Information Exchange, sits as chairman of the Iris Fund.
“This inaugural venture represents the Group’s strong belief in the growth of the region. The fund will be the first of many partnerships with Iris Capital Partners as the Group is looking to invest more in Malaysia and Southeast Asia,” said Kimo Kim, Partner at the Iris Fund.
Iris has already begun deploying.
It made its first investment in Growthwell Group, a Singapore-based alternative meat and seafood protein provider for food and beverage (F&B) businesses in Southeast Asia. The fund joined Growthwell’s $22 million Series A round alongside Temasek, Creadev, GGV Capital and DSG Consumer Partners.
Growthwell is the company behind the vegan plant-based brand HAPPIEE!, egg-free cooking ingredients brand OKK and plant-based ready meal brand Gomama. It plans to use the investment to expand its manufacturing facility in Johor Bahru, Malaysia.
According to Iris, the fund is sector and stage agnostic. It looks for companies with comprehensive business plans and projections with clear strategies for long-term growth. “The Fund is aimed to diversify capital sources for startups and help strengthen the financing opportunities in South East Asia,” said Dato’ Wan Kamaruzaman Wan Ahmad, chairman of the Iris Fund.
Venture debt is a small but growing asset class in Southeast Asia. Apart from Iris Capital, the other Southeast Asian venture debt funds include names like InnoVen Capital, Genesis Alternative Ventures and BRI Ventures.
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