Creador launches $200m Fund II

The Brahmal Vasudevan-led firm has started fundraising for its second vehicle and has made its first exit from Fund I selling a partial stake in Malaysia’s OldTown White Coffee.

Kuala Lumpur-based Creador has launched its second private equity vehicle targeting between $200 and $250 million, a source close to the matter revealed to Private Equity International. The fund officially went to market about two weeks ago and the private placement memorandum to potential LPs will be released within the coming weeks. 

Creador has about $100 million in potential commitments from its existing LPs, with some new investors also showing interest, the source said. The fund is eyeing a first close on 1 September.

The firm declined to comment on fundraising. 

Creador's first fund, vintage 2012, closed last year on $132 million. The original target of Fund I was $350 million, but due to market conditions and rules that restrict many of its target LPs from investing in first time funds, the firm reduced the target, PEI reported earlier.
 
The launch of the new fund comes as Creador makes its first exit from Fund I, selling 45 percent of its holding in restaurant and coffee shop chain OldTown White Coffee on the Malaysian stock exchange, according to a firm statement. The price of the deal was undisclosed, but the firm said it made a 2x multiple and 101 percent IRR on the sale. 

Creador invested RM45.7 million (€11.5 million; $15 million) in April 2012, representing a 10 percent interest in OldTown. The firm retains 65 percent of its original interest as it sees “further growth potential in the business”, according to the statement.

Established in 1999, OldTown runs restaurant outlets and produces instant coffee. During 2012, the company reported revenues of $111 million and net profit of $14.6 million.

“We’d been getting a lot of interest in the stock but the company doesn’t want to issue new shares because they don’t need new capital, so we decided to do a partial exit to help the company get a broader base of investors,” founder and chief executive of the firm Brahmal Vasudevan told Private Equity International

Many investors are looking for exposure to high-growth consumer stocks in Malaysia, which has had a buoyant stock market compared to China and India, he added. 

“Malaysia last year was one of the top IPO markets with three big listings. This year, post the elections that happen in about 10 days, there are a few large IPOs that are expected to go ahead,” Vasudevan said,