Southern Capital closes Fund III

The Singapore-based firm has hit its hard-cap, collecting $408m for investments in Southeast Asia.

Southeast Asia-focused Southern Capital Group has closed its third fund on $408 million after hitting the market last year, according to a person with knowledge of the situation. 

Southern Capital, which is headquartered in Singapore, had been targeting $350 million. The firm collected $400 million, plus another $8 million from affiliates, the source said. Southern also decided to share 100 percent of any transaction fees with limited partners in Fund III, up from 80 percent in the prior fund, the person said.

The firm could not be reached for comment as of press time. Park Hill Group worked as placement agent for the fundraising. 

The firm focuses on investments in Southeast Asia, targeting mid-market businesses with enterprise values of between $20 million and $200 million. 

Tan Teong Hean, former chief executive of Southern Bank, is the chairman of Southern Capital’s investment committee. Eugene Lai and Kenneth Tan head the firm as managing directors and co-managing partners. 

Prior to Southern Capital, Lai worked as a managing director of The Carlyle Group’s Asia buyout business, while Tan co-founded Cassis International, a smart card services company. Tan also formerly worked with GIC Special Investments.

Southern Capital’s past funds were called Mulberry Asia funds I and II. Fund II is a 2009 vintage that closed on $300 million, and Fund I is a 2005 vintage that closed on $60 million, according to Private Equity International’s Research and Analytics division.