Growtheum Capital Partners (GCP), the Singapore-based private equity firm that recently raised $567 million for its debut fund, has announced its investment in KIN Dairy, an Indonesian manufacturer of dairy products.
Financial terms of the deal remain undisclosed but sources aware of the development estimate the investment to be around $70 million.
With the investment, Growtheum now joins Mitsui & Co as a backer of KIN Dairy, which aspires to attain market leadership in Indonesia’s dairy sector.
Earlier this year, Growtheum invested about $100 million in Vietnam’s International Dairy Products (IDP).
KIN Dairy, Growtheum’s latest dairy sector investment, is a vertically integrated dairy manufacturer that produces yogurt and milk products under the brand KIN. It also operates one of the largest and only A2-cow dairy farms in Indonesia, according to the announcement.
The farm, which is situated 1,350 meters above sea level in the mountainous region of West Java Island, is spread over 80 hectares and is equipped with the latest technologies in milking, feeding, and processing.
“With the company’s relentless commitment to product innovation, nutritional values, and best-quality ingredients, KIN Dairy represents an attractive opportunity for GCP to realise the market opportunity,” said Kusnadi Pradinata, senior managing director at the PE firm.
KIN Dairy president director Warren Choo said GCP’s track record of collaboration with management teams in growing and building consumer companies in Southeast Asia appeals to the Indonesian manufacturer.
The investment comes about a month after Growtheum secured the final close of its debut fund at $567 million, lower than its initial target of $600 million to $800 million.
Growtheum SEA Fund I, which will invest in Southeast Asia and India, raised from around 40 LPs, including institutional investors such as the World Bank’s International Finance Corporation (IFC) and the Asian Development Bank (ADB). The firm has also deployed in a series of deals.
Growtheum has invested in Indonesia’s e-grocery platform AlloFresh, digital lender Bank Allo, hospital group Mitra Plumbon Healthcare Group, and IDP, among others.
The firm deploys cheque sizes of between $50 million and $350 million. It avoids smaller deals but can be opportunistically flexible with its cheques, Growtheum’s managing partner Amit Kunal had said earlier.
