Singapore-listed financial firm Yangzijiang Financial Holding Ltd, has partnered with Temasek-backed investment firm Heliconia Capital Management Pte. Ltd. (Heliconia), to launch S$150 million ($109 million) fund to invest in promising small and medium enterprises (SMEs) in Singapore and other Southeast Asian countries.

Yangzijiang Financial said in a statement on Tuesday the investments will be made through the Heliconia Generation Fund Limited Partnership fund.

Yangzijiang Financial will contribute S$80 million ($58 million) to the fund, as the anchor limited partner of the fund.

The fund intends to invest in promising SMEs, with a focus in Singapore and Vietnam.

It is intended for the fund to co-invest alongside the other funds managed by Heliconia, including the SME Co-Investment funds, catalyzing more capital for promising Singapore SMEs. Investments may be structured in the form of equity, debt and/or hybrid debt-equity structures.

Heliconia focuses in investing in growth-oriented SMEs. Some criteria used in identifying its investments include a strong market position, sustainable competitive advantage, competent management, and the potential to be a significant player regionally or globally.

By tapping on Heliconia’s extensive business network and industry relationships, the investee companies have also benefitted and expanded their operations.

Heliconia has a track record as an active investor in Singapore, and portfolio companies include Carousell, CSE Global, Eagle Eye Centre, Fagerdala, Heptagon, Jumbo Group, Nanofilm, One Championship, Secretlab and Razer.

In the last few years, Heliconia has also expanded to other Southeast Asian countries with investments in Vietnam and Indonesia.

As the anchor limited partner of the fund, Yangzijiang Financial will have one representative in the fund’s investment committee in order to represent its interests as a limited partner in the fund.

Where appropriate, Yangzijiang Financial will explore co-investment opportunities alongside the fund.

“We are honoured to join hands with Heliconia Capital Management to invest and support the growth of Singapore and Southeast Asian SMEs. SMEs form the critical pillar of the economic system of every country in Southeast Asia,

“With the Fund focused on investing in promising small and medium businesses in the region, there is a plethora of growth opportunities that we can target,” said Vincent Toe, Chief Executive Officer and Chief Investment Officer of Yangzijiang Financial.

Heliconia’s Chief Executive Officer Derek Lau said the move is in line with the group’s overall co-investment objective where they can leverage more networks.

“We are excited to have Singapore listed Yangzijiang Financial join as the anchor limited partner in our newly launched Heliconia Generation Fund. Partnering with like-minded investors such as Yangzijiang Financial will add value for our investee companies,” he added.

Yangzijiang Financial is a Singapore-incorporated company whose principal business comprise the (i) investment management business, which seeks capital appreciation and investment income from investments in both public and private companies, funds and debt investments; (ii) provision of wealth management services for advisory income and (iii) fund management business to generate recurring fee-based income from the management of third party investment funds.

Heliconia is an investment firm that focuses on growth-oriented companies. It is a wholly owned subsidiary of Temasek Holdings.

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