fbpx 49274-001: Equity Investment in Creador III LP | Asian Development Bank

Regional: Equity Investment in Creador III LP

Nonsovereign (Private) Project | 49274-001 Status: Active

A $45 million equity investment in a targeted US$450 million growth equity fund focused on Southeast Asia (namely, Indonesia, Malaysia, and Philippines), India and Sri Lanka. The fund, Creador III LP, ( Creador or the Fund ), will invest in about 12 middle market companies primarily in three key verticals: (i) financial services (banks, finance companies); (ii) consumer goods and services (healthcare, education); and (iii) business services (B2B services, outsourcing, payment processing, logistics). The Fund will also primarily seek to take minority stakes with significant influence, with an average investment size of $10 to $50 million.

Project Details

Project Officer
Mahmud, Farshed Private Sector Operations Department Request for information
Country
  • Regional
Sector
  • Finance
 
Project Name Equity Investment in Creador III LP
Project Number 49274-001
Borrower/Company Creador Management III Limited
Country Regional
Location Regional
Type or Modality of Assistance
7456 Equity Ordinary capital resources USD 45.00 million Approved
Strategic Agendas Inclusive economic growth
Regional integration
Drivers of Change Partnerships
Private sector development
Sector / Subsector

Finance / Infrastructure finance and investment funds

Gender Equity and Mainstreaming No gender elements
Responsible ADB Department Private Sector Operations Department
Responsible ADB Division Portfolio Management Division, PSOD
Responsible ADB Officer Mahmud, Farshed
Project Sponsor(s)
Description A $45 million equity investment in a targeted US$450 million growth equity fund focused on Southeast Asia (namely, Indonesia, Malaysia, and Philippines), India and Sri Lanka. The fund, Creador III LP, ( Creador or the Fund ), will invest in about 12 middle market companies primarily in three key verticals: (i) financial services (banks, finance companies); (ii) consumer goods and services (healthcare, education); and (iii) business services (B2B services, outsourcing, payment processing, logistics). The Fund will also primarily seek to take minority stakes with significant influence, with an average investment size of $10 to $50 million.
Objectives and Scope

The fund will make equity and equity-linked investments in middle-market companies that cater primarily to middle-income segments in South and Southeast Asia, including India, Indonesia, Malaysia, the Philippines, and Sri Lanka. Within these segments Creador III will concentrate on three broad investment themes: (i) financial services (e.g., banks and finance companies); (ii) consumer goods and services (e.g., health care and education); and (iii) business services (e.g., business-to-business services, outsourcing, payment processing,

and logistics).

Linkage to Country/Regional Strategy The fund's investment goals strongly align with ADB strategies for encouraging the development of private sector middle market companies (including SMEs), removing barriers to financing for such companies, and promoting social and inclusive growth. Furthermore, the fund's investments are consistent with ADB's plan for finance sector operations, which prioritizes the need to enhance access to finance for middle market companies as part of the finance sector development agenda, and the need to support the three key pillars of the real economy: households, SMEs, and infrastructure. The fund's exit strategy includes IPOs and trade sales, which are expected to contribute to the development of local capital markets in the investee countries.
Safeguard Categories
Environment FI
Involuntary Resettlement FI
Indigenous Peoples FI
Summary of Environmental and Social Aspects
Environmental Aspects The project is an equity investment focusing on three main industries: (i) financial services; (ii) consumer goods and services; and (iii) business services. The existing environment and social management system (ESMS) was enhanced to adopt the ADB's prohibited investment activities list (PIAL) as primary screening tool for new investments. An environment and social screening is also undertaken to assess potential impact of proposed investments. Category A investments on environment are excluded from ADB financing.
Involuntary Resettlement The Fund adopts an enhanced ESMS which screens and assess potential social impact of a proposed investment prior to approval. The Fund will not engage in any investment categorized as A on involuntary resettlement.
Indigenous Peoples The Fund adopts an enhanced ESMS which includes screening and assessment of potential impact of a proposed investment on indigenous peoples (IPs) prior to approval. The Fund will not engage in any investment that will impact on IPs.
Stakeholder Communication, Participation, and Consultation Conduct of stakeholder consultation depends on the potential risk/impact of the proposed investment. Stakeholder engagement in general is limited to implementation of a range of charitable activities through the company's foundation.
Timetable for assistance design, processing and implementation
Concept Clearance 06 Aug 2015
Credit Committee Meeting 28 Sep 2015
Approval 06 Nov 2015
Last PDS Update 16 Jul 2018

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Equity Investment in Creador III LP: Report and Recommendation of the President Reports and Recommendations of the President Oct 2015

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Investment disclosure: The subprojects listed below provide a status update of Creador III portfolio as of February 2019.

Investment Name Country of Investment Sector Background Environment Safeguards Category Involuntary resettlement Safeguards Category Indigenous Peoples Safeguards Category Start Date Exit Date
City Union Bank India Banking

City Union Bank (CUB) is a listed private, scheduled commercial bank in India focused on financing to Small and Medium Enterprises (SME), Trade and Retail segments. Headquartered in Kumbakonam, Tamil Nadu, CUB has a network of over 500 branches and over 1,300 ATMs across India. It has a strong legacy franchise in South India and is steadily expanding its presence Pan India

C C C Feb 2016 April 2017

Corona Remedies

India Pharmaceuticals

Incorporated in 2004, Corona is a fast growing pharmaceuticals company in the Indian domestic formulations market. The product range includes drugs in the fast growing therapeutic segments like cardio diabetic, nutraceuticals, gynecology, orthopedic and pediatrics. The Indian domestic pharmaceutical market is growing at a fast pace driven by better diagnosis and rising lifestyle diseases. Corona has been successful in building a strong presence due to its product range, focus on affordable quality healthcare, robust distribution network and an experienced field force

B C C

Jul 2016

-
Ventaserv Malaysia Vending Machines

VentaServ is an independent vending services operator that places and operates vending machines in Malaysia. Vending machines provide a convenient means of procuring refreshment for consumers. Operates machines that provide canned RTD beverages and ready-to-drink hot and cold beverage machines. Machines are operated in offices, shopping malls, factories, educational institutions amongst others

C C C Jul 2016 -
Mr. DIY Malaysia Value Retail

Established in 2005, MR. D.I.Y. is the largest home improvement retailer in Malaysia with more than 20,000 different products across a variety of segments such as household, hardware and electrical products. MR. D.I.Y. has doubled its store count to over 450 stores across the whole of Malaysia in the last few years as the brand gained more traction in Malaysia. MR. D.I.Y. prides itself on being a low-cost leader by emphasizing operational efficiency and providing “everyday low prices” to customers.

C C C

Oct 2016

-
Hermina Indonesia Healthcare

Hermina Group is one of the largest private general hospital chains in Indonesia with 28 hospitals and 2,800 operating beds across 17 tier 1 and tier 2 cities. The Group was initially founded as a single maternity clinic in the 1970s but has now developed into a multi-specialty general hospital chain with a core expertise in women and children care. Hermina is also one of the early adopters and supporters of the government sponsored Universal Healthcare Coverage program as part of the Group’s goal of providing high quality and affordable hospital services to local communities across Indonesia.

B C C

Jun 2017

-

Paras Healthcare

India Healthcare

Established in 2006, Paras Healthcare is a North India focused hospital chain offering secondary and tertiary care services. The Indian healthcare market is highly under​-​served and North India is characterized by weak hospital infrastructure and low doctor availability compared to other regions. Paras ​Healthcare ​is built on three ​tenets – quality, affordability and accessibility. The chain continues to expand in the Tier I and Tier II towns of North India by being a community player and empowering the middle class with access to quality care at locations that have limited facilities

B C C

Jul 2017

-

Mr. DIY

Indonesia Value Retail

MR. D.I.Y Indonesia is a regional expansion of MR. D.I.Y Malaysia, which was established in 2005 and currently owns and operates more than 380 stores in Malaysia, Thailand and Brunei. It is the largest home improvement retailers in Malaysia, selling a variety of products with over 20,000 SKUs across 9 product categories. The 9 product categories are: Household, Hardware, Electrical, Stationery, Sports, Jewelry and Cosmetics, Gifts, Car accessories, and Toys.

C C C

Jul 2017

-

Bake with Yen

Malaysia

F&B Retail

Established in 1987, Bake With Yen (BWY) is the largest specialty bakery and food ingredients retailer with presence in Peninsular and East Malaysia. Over the last 30 years, BWY has developed a reputation as the preferred one-stop destination for a vast array of affordable local and imported baking ingredients. Today, BWY boasts a successful range of in-house products and aspires to expand its footprint across Southeast Asia.

C C C

Aug 2017

-

Ujjivan Financial Services

India Banking

Ujjivan is the holding company of Ujjivan Small Finance Bank, which is focused on providing loan and savings products to the unserved and underserved population. Incorporated in 2004, Ujjivan serves over 3.5 million customers through its network of pan India branch network.

C C C

Nov 2017

-

Ujjivan Financial Services

India  Banking

Ujjivan is the holding company of Ujjivan Small Finance Bank, which is focused on providing loan and savings products to the unserved and underserved population. Incorporated in 2004, Ujjivan serves over 3.5 million customers through its network of pan India branch network.

B (revised)

C C

Feb 2019

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