Riverside makes debut in Southeast Asia

The firm has acquired Drex-Chem Malaysia, one year after appointing its Singapore-based deal origination head

Global private equity firm The Riverside Company has made its first foray into Southeast Asia with chemical distribution business Drex-Chem Malaysia, having strengthened its operations in the sub-region over the past two years, according to a statement. 

Riverside did not disclose the financial details of the transaction, but is currently investing from its second Asia Pacific vehicle, which closed on $235 million in May this year having raised almost 60 percent more than its $150 million initial target. The firm typically invests in growing businesses valued at up to $250 million.

While the second fund maintained the strategy of its predecessor, it included Southeast Asia as a new target region for the firm. Still focusing on Asia’s developed markets, including Australia, Japan and Korea, Riverside now also looks for opportunities in Southeast Asia, particularly in the more developed markets of Singapore and Malaysia.

The firm opened its presence in Singapore in March 2013, since staffing the office with managing director Ivica Turza to head the region’s deal origination efforts.

“Singapore will be a very important office going forward. It is really focusing a lot on opportunities in the market – the pipeline right now is great and increasing as we speak,” he told Private Equity International last year.

Turza also sourced the investment in Drex-Chem, which Riverside intends to grow both organically and through add-on acquisitions.

Drex-Chem’s operations allow international chemical producers to access the Malaysian market, providing customers with specialty products, as well as logistic and technical services on the ground.

“Drex-Chem Malaysia boasts a broad product offering, strong technical capabilities and a knowledgeable salesforce that anticipates and meets both its principals’ and customers’ needs,” Riverside managing partner Stu Baxter said in a statement.