Temasek-backed Vertex seeks $450m for latest Southeast Asia, India fund

Vertex SEA Fund V would be almost 50% larger than its 2019-vintage predecessor and will double down on existing investments, PEI understands.

Vertex Ventures Southeast Asia & India, a Temasek-backed venture capital and growth equity business, is seeking $450 million for its fifth fund, Private Equity International understands.

The firm – which is part of a global network of six independent managers anchored by Temasek’s Vertex Holdings subsidiary – is expected to hold a final close on the fund next year, according to two sources with knowledge of the matter.

Fund V would be almost 50 percent larger than its $305 million 2019-vintage predecessor and will make a larger number of investments, as well as doubling down on existing Vertex assets, the sources said.

Vertex Ventures Southeast Asia & India declined to comment.

Vertex Holdings typically provides between 20 percent and 40 percent of Vertex funds. The firm supplies anchor funding and operational support for a global network of GPs, which includes Vertex Ventures Israel, Vertex Ventures US, Vertex Ventures China, Vertex Ventures Healthcare and Vertex Ventures Growth.

Reuters previously reported that Vertex Ventures Southeast Asia & India would seek at least $400 million for Fund V.

The firm’s prior investments include ride-hailing giant Grab, which became one of the region’s largest unicorns, or start-ups valued at more than $1 billion. It has backed 65 companies to date, of which six became unicorns, per its website.

Southeast and South Asia have been touted as a potential alternative to Chinese private equity, which has been impacted by regulatory uncertainty, travel disruption and geopolitical tensions in recent years. India, in particular, attracted massive amounts of capital during the pandemic and is likely to benefit in part from diminished appetites for China in the near term.