Peregrine, Sewu jointly set up investment firm
Peregrine, Sewu jointly set up investment firm
JAKARTA (JP): The Hong Kong-based Peregrine Investment
Holdings, the largest Asian investment bank outside of Japan, is
expanding its business here to participate in the growing
economies of South East Asia, Chairman Philip Tose says
Tose said in a press conference yesterday that Peregrine
teamed up with the Jakarta-based Gunung Sewu Group to found
Peregrine Indonesia Fund (PIF), a Cayman Island investment
company listed on the Irish Stock Exchange, to bring foreign
capital into Indonesia.
He estimated that PIF's first closing later this month will
exceed US$50 million while the second in the end of 1994 will go
between $90-100 million.
Husodo Angkosubroto, Peregrine's Indonesian partner and
principal of the Gunung Sewu Group, said that Peregrine could
bring as much as $1 billion in investment funds to areas such as
power, telecommunications and transportation.
Government officials said that Indonesia needs US$305 billion
in investment during the current Five Year Development Plan
(Repelita VI) and 73 percent of the total is expected from the
private sector, including foreign investors.
"At least some 80 percent of the funds to be brought in by PIF
will be biased on medium and long term venture capital
opportunities where the exit will be a public listing," said
Patrick Alexander, the managing director of the company, adding
that the fund life is seven years from the first closing.
Alexander, who lived in Indonesia for 10 years as an
Australian diplomat, said that Indonesia is in need of foreign
capital.
Tose said that the investors include institutional fund
managers, pension funds and individuals from the United States,
Canada, Britain, the Netherlands, Switzerland, the Middle East,
Hong Kong and other Asian countries.
He added that Peregrine will invest a maximum of 15 percent of
its assets in an enterprise.
Peregrine will help unlisted companies, which need capital as
well as management assistance, to improve performance and, in the
long run, list their shares on stock exchanges, he said. (09)