#Indonesia #Jakarta #Southeast Asia #East Ventures #Coller Capital

East Ventures Initiates New Era with GP-led Secondary Transaction

In a significant development for the venture capital landscape in Southeast Asia, East Ventures, a renowned firm based in Indonesia, announced the successful closure of its inaugural GP-led secondary transaction in collaboration with global secondary firm, Coller Capital. This landmark deal is poised to enhance liquidity options for the firm's investment partners, offering them opportunities to capitalize on their commitments while still retaining ties to their portfolio companies.

The transaction primarily involved limited partners in East Ventures 5 L.P. (EV5), marking a significant step as the firm continues to navigate the complexities of venture capital investments. As of now, the fund has generated a remarkable distribution-to-paid-in capital (DPI) ratio, reaching approximately 2.0x. This achievement underscores East Ventures' commitment to delivering value to its investors while fostering growth within the Southeast Asian tech ecosystem.

East Ventures, established in 2009, has emerged as a dominant player in the region, focusing on seed and early-stage rounds. The firm's strong commitment to nurturing startups has led to robust financial returns and a reputation for consistent high performance. EV5 particularly boasts a stellar portfolio featuring prominent Southeast Asian technology companies such as IDN and waresix, which have also been integral to subsequent funding rounds initiated by East Ventures.

“This transaction not only serves as a substantial liquidity milestone but also enables us to maintain our strategic partnership with the talented entrepreneurs behind our portfolio companies,” noted Willson Cuaca, Co-Founder and Managing Partner at East Ventures. “We believe that these companies are strategically positioned to benefit from the burgeoning digital economy in Indonesia.”

The transaction was structured to include a profit participation component, designed to ensure that EV5 can offer lucrative returns for its limited partners while still engaging actively in the future developments of its portfolio. This kind of structured approach solidifies East Ventures' stance as a vital partner in the growth and success of the companies it supports, showcasing its role as an integral player in their operational strategies and corporate governance.

Peter Kim, Partner and Head of Asia at Coller Capital, emphasized the collaborative nature of the deal, highlighting their long-standing relationship with East Ventures. He stated, “This deal is a testament to our commitment to providing tailored solutions that align with our partners' objectives while unlocking substantial value for investors.”

The involvement of UBS Private Funds Group as advisors and the legal counsel provided by Gibson, Dunn & Crutcher for East Ventures further illuminate the complexities involved in executing such a pivotal transaction. Debevoise & Plimpton also served as legal advisors for Coller Capital, showcasing the high level of professionalism and expertise required to facilitate such deals.

As the venture capital and secondary markets continue to evolve in Asia, this transaction by East Ventures signals a shift towards innovative liquidity solutions that support both investment firms and their partners. With East Ventures being recognized as one of the most active and consistent top-performing funds globally, this move aligns perfectly with their ongoing mission of driving positive social and environmental impacts throughout Southeast Asia.

With the dawn of this new chapter, East Ventures stands ready to further its engagements in the digital space, reinforcing its commitment to entrepreneurs and solidifying its role in shaping the Southeast Asian venture landscape.