Ex-BofA banker launches $1 bln Indonesia PE fund

HONG KONG Tue Nov 8, 2011 3:01am EST

HONG KONG Nov 8 (Reuters) - A former Asia-based investment banker with Bank of America Corp , Chad Holm, is seeking to raise $1 billion in a new private equity fund to invest in Indonesia.

Holm, who relocated to Asia last year, told Reuters the fund would be primarily focussed on financial, resources, and infrastructure investment opportunities in Indonesia.

The fund would be launched in the first quarter of next year, aiming for a first close within three months, he added.

Holm, who specialises in financial industry M&As and capital raising, is backed by Indonesia businessmen in his new venture, which will offer corporate advisory services.

"This is the old-line merchant banking model. This is putting your money where your mouth is ... as opposed to a very transactional model," Holm said, adding that he had committed about $25 million of his own money to the venture.

The fund would set aside 10 percent of its profits for social causes, Holm said.

Indonesia, Southeast Asia's biggest economy, has attracted the attention of global investors because of its fast-growing youthful middle class and rich natural resources. Since 2005, there have been 18 private equity deals in Indonesia with $1.8 billion of cash invested, according to Thomson Reuters.

Several other funds, including Saratoga Capital, Ancora Capital, Falcon House Partners, are planning to raise private equity funds targeting Indonesia, with fund sizes varying between $300 million and $400 million.

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