Makara Capital, Singapore Gov launch $717m fund

The pair will target companies with strong intellectual property focused on urban solutions, fintech, consumer, alternative energy and healthcare.

The Intellectual Property Office of Singapore (IPOS) and Singapore-based private equity firm Makara Capital launched a S$1 billion ($717 million; €657 million) innovation fund on Wednesday, according to a statement from IPOS.

The Makara Innovation Fund (MIF) will target high-growth companies with strong intellectual property (IP) and proven business models that use Singapore as a base for their growth and cross-border expansion.

The firms will invest between S$30 to S$150 million across 10 to 15 IP-rich companies, which could be based in Singapore or elsewhere. Sectors of interest include urban solutions, advanced technologies, fintech, consumer, alternative energy and healthcare.

Companies the firms will invest in are expected to leverage Singapore’s IP ecosystem to help translate ideas into assets and revenue.

The MIF is an initiative under the updated 2013 IP Hub Master Plan, which identified IP as a key driver of Singapore’s economic growth. Under the master plan, the government aims to inject at least S$1.5 billion value-add into the nation’s economy over the next five years.

Makara Capital, founded in Singapore in 2005, is a financial services company focused on private equity, structuring and financing with a focus on innovation, infrastructure and energy. The firm is currently deploying a 2013-vintage, $888 million vehicle called Asia Development, according to PEI data.