Indonesia’s Arapima targets $150m for debut fund

Looking to capitalise on post-Asian financial crisis recovery, the Indonesia-based firm has raised more than $30 million so far for its Southeast Asian fund.

Indonesia-based Arapima is raising a $150 million (€94.83 million) Southeast Asian fund that will target mid-market consumer and retail companies with enterprise values between $20 million and $50 million.

We really believe the mid-market space in Indonesia has been neglected.

Stefan White

“We really believe the mid-market space in Indonesia has been neglected,” Arapima managing director Stefan White told PEO. “The private equity space in Southeast Asia is very new.” 

Arapima is one of a small but growing number of Indonesia-based private equity firms seeking to exploit post-Asian financial crisis opportunities in Southeast Asia. Other fund managers with offices on the island chain include TPG-backed North Star, Saratoga Capital Asia and Quvat Management. 

White said Arapima will bring in professional management for its portfolio companies and take them public as soon as possible, for both capitalisation and transparency purposes. Arapima expects to invest the fund in five to eight portfolio companies, and will seek minority investments in many family-owned businesses.

The fund has a target initial close date of the fourth quarter of this year. Arapima has secured more than $30 million in commitments thus far, with general partners contributing $23 million. In addition to consumer and retail businesses, Arapima will also explore opportunities in the manufacturing and services sector.