Singapore-headquartered Beacon Fund has announced the launch of a new fund with an initial target of US$50 million, which aims to invest in female entrepreneurs based in Southeast Asia’s emerging markets, such as Vietnam.
The firm, founded recently by Shuyin Tang and Lee Fitzgerald (both Partners at Patamar Capital), has already raised approximately 25 per cent of the target.
Beacon’s initial focus will be on debt products, which, it says, tend to be a better fit for the moderate-growth, cash-flow positive businesses that the fund targets.
The investment sizes range from US$500,000 to US$2 million with the potential to go smaller if the businesses contribute to COVID-19 recovery efforts.
Beacon has developed a thesis around certain sectors which have a high concentration of businesses fitting its target profile — for example agri-businesses, education, healthcare and services (marketing, design or HR).
The fund anticipates making its first investments before the end of the year.
Beacon will use an evergreen structure — rather than the ‘typical’ 10-year closed-ended fund — to better align with Beacon’s long-term vision and commitment to supporting female entrepreneurs.
Beacon has received support from many like-minded partners, including ‘Investing in Women’, an initiative of the Australian Government; and USAID INVEST, an initiative that mobilises private sector capital for better development results.
Much like the companies it invests in, Beacon aims to generate steady cash-flows and long-term capital appreciation.
As part of the launch, Beacon started a ‘Request for SMEs’ campaign, with the goal of sharing more transparently with entrepreneurs the type of companies the fund is looking for.
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