Yangzijiang Financial to anchor $100 million fund of firm led by ex-CEO Vincent Toe
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The fund will invest exclusively in Singapore SMEs, with Yangzijiang Financial CEO Ren Yuanlin saying they have "exceptional growth potential" with the right capital and strategic support.
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SINGAPORE - Yangzijiang Financial will be the anchor investor in a $100 million fund by ICH Asset Management (ICHAM), which is led by the Singapore-listed company’s former chief executive Vincent Toe.
The fund will invest exclusively in Singapore’s small and medium-sized enterprises (SMEs), and is expected to start doing so in September, Yangzijiang Financial announced in an Aug 18 filing with the Singapore Exchange.
It did not specify the exact sum it would invest in the fund.
The initial pipeline of opportunities includes companies in the technology, healthcare, sustainability and consumer services sectors.
SMEs “form the backbone of the economy and, with the right capital and strategic support, harbour exceptional growth potential for investors”, said Yangzijiang Financial chief executive Ren Yuanlin.
“By anchoring this fund with ICHAM, we are signalling our long-term commitment to the local equity market and believe that Singapore offers a unique opportunity for investors who are prepared to take a focused and disciplined approach,” he added.
Mr Toe, who is managing director of ICHAM, said the strategy is to identify companies with clear growth trajectories and continue to support them in the public markets.
The fund will back SMEs from before they undergo an initial public offering, through to market entry and beyond, including strategic placements after listing.
Yangzijiang Financial said: “This flexible strategy will enable both the group and ICHAM to capture value-accretive opportunities throughout the growth milestones.
It added: “By focusing on Singapore’s small to mid-cap segments, the (fund) endeavours to address the lack of large institutional capital and research coverage in this space, unlocking growth potential in an underserved area of the equity market.”
Yangzijiang Financial shares ended 1.9 per cent lower at $1.04 on Aug 19. THE BUSINESS TIMES
