Indonesia’s investment firm PT Saratoga Investama Sedaya is in talks with strategic investors for a co-investment partnership as it looks to bet big on rising opportunities in Southeast Asia’s largest economy.
The company is currently evaluating multiple options including running public-listed Saratoga Investama funding on its own, setting up a new successor fund, or co-investing with a strategic partner.
Saratoga Investama invests almost US$100 million annually in Indonesian companies or global firms with reaches in Southeast Asia. The fund mainly focuses on investment opportunities in the early stage and growth stage with emphasis on three key sectors including consumer, infrastructure, and natural resources.
Jerry Ngo, the Chief Financial Officer at Saratoga Investama said, “We have enough monetization to allow us to deploy and share part of the gains to continuing shareholders. The company also has access to the debt market which will help tap funding sources.”
“So the next phases is really whether Investama should continue to invest on it own, or go with new partners.”
So far, the firm has been approached by strategic investors from China, Korea, and Japan who are keen to enter Indonesia and participate in its growth as co-investors. The firm is however still in discussions with these players and will announce the development soon.
In terms of selection, the Saratoga Group will consider the LP-GP structure and look for partners that specialize or concentrate on specific skill sets such as expertise in water management industry, healthcare, among some.
Moving forward, Ngo said that, “the company will continue to focus on their main business, i.e. finding out good deals in the pipeline, investing into right partners, growing them and bringing them to a stage where you could either monetize or look for investment.”
Saratoga Group’s recent investments in healthcare include Awal Bros Hospital Group in 2016 and Indonesia’s leading herbal remedy player Deltomed. Meanwhile, the company has also invested in cold chain logistic warehouse MGM Bosco and Mitra Pinasthika Mustika, a consumer automotive company.
At present, the investment firm has over 20 subsidiaries, many of which are public companies listed on the Indonesia Stock Exchange like coal producer Adaro Energy, tower operator Tower Bersama Infrastructure, plantation firm Provident Agro, and leasing company Mitra Pinasthika Mustika.