Vertex Ventures, a Southeast Asia- and India-focused venture capital firm, is likely to get $20 million in Limited Partner commitment from International Finance Corporation (IFC) for its fifth fund for the region.
IFC, the private-sector investment arm of the World Bank Group, said it is evaluating an equity investment of up to $20 million in Vertex Ventures (SG) SEA V LP, a Singapore-domiciled fund managed by Vertex Ventures SEA Management Pte. Ltd.
IFC added that it may also come with a $20 million delegated authority co-investment envelope.
It is common for LPs to co-invest in one or more portfolio companies along with a partner venture capital or private equity firm.
Vertex is expected to be aiming at a $400-500 million final corpus under the new fund.
Vertex, an early-stage venture capital firm backed by Singapore state investment firm Temasek Holdings, had raised $305 million under its fourth fund in 2019. This was higher than the $280 million hard cap set by the VC firm earlier.
The VC firm counts sovereign wealth funds, financial institutions, corporate houses and family offices across Asia and Europe among its LPs.
It had set a goal of backing three-four Indian tech companies through this fourth fund.
Vertex’s first India and Southeast Asia fund of 2010 vintage and the second fund of 2014 vintage were fully funded by Temasek. Its third fund had surpassed the target corpus to mark the final close at $210 million in October 2017.
Vertex Ventures Southeast Asia and India fund is part of Vertex Holdings’ network of global funds.
Earlier this year, its Israel chapter collected $400 million for two new VC funds.