Silk Road Launches First Ever Myanmar-focused Venture Capital & Private Equity Fund

10 September, 2012

Silk Road Management is pleased to announce the launch of Myanmar Human Capital Fund, after reaching the target size of US$ 25 million for its first close. Capital commitments came from a number of family offices and high net worth individuals from Mongolia, Russia and oil rich countries of the Caspian region.

“We are extremely privileged to be in a position to launch the first ever Myanmar-focused venture capital & private   equity fund,”   stated Alisher Ali, Managing Partner   of Silk Road Management. “After   50 years of   isolation,   Myanmar is currently witnessing unprecedented transformation, with bold reforms initiated by the government   capturing both the nation’s aspirations and the world’s attention.   We truly believe that human capital development   is the key to success of the country’s economy and prosperity of its people. We hope that our debut fund will both contribute to the development of knowledge-intensive industries in Myanmar and provide strong returns for our investors”.

The  Fund  intends  to  pursue  investments  in  knowledge-driven  industries  such  as   internet, information   technologies, media, telecommunications services, education, health care, financial and professional services. Despite investment appeal of oil & gas, mining, manufacturing and other capital-intensive sectors in the country, the Fund aims to focus on industries where human capital, creativity and innovation will create new champions in Myanmar’s future knowledge-based economy in years to come.

Strategically located between China and India, Myanmar is currently undergoing historical transformation from the long-isolated state with its economy crippled by sanctions into the nation that once again could become one of the most prosperous in Asia with the successful process of democratization and market reforms.  Endowed with significant natural resources, the second largest landmass in South East Asia and population of over 60 million, Myanmar represents one of the world’s most attractive investment opportunities.

Only two months ago, the US administration issued keenly-awaited approval for the American companies to invest in Myanmar which paved the way for American and global companies and investors to accelerate their decisions on investments into the country’s capital-starved economy.    Since then, a number of US blue chip companies announced their plans to enter or return to Myanmar. Interestingly, the launch date of the Myanmar Human Capital Fund coincides with today’s announcement of The Coca Cola Company about making its first delivery to Myanmar in 60 years.

Silk Road Management is an investment management firm focused on investments in various asset classes in resource-rich frontier countries, including public equities, private equity and property.  The Firm recently launched Silk Road 3 Fund to invest  primarily in public equities and fixed income in Myanmar, Mongolia and Mozambique.  Silk Road also manages two venture capital and private equity funds: $30m Mongolia Human Capital Fund and $25m Myanmar Human Capital Fund, both of them being the first ever such funds in Mongolia and Myanmar respectively. The Firm owns seven frontier markets equity indices: Silk Road Composite Index, Silk Road Central Asia Index, Silk Road Mongolia Index, Silk Road Australia Index, Silk Road Hong Kong Index, Silk Road Iraq Index and Silk Road Iraq Oil Index.

Silk Road Management is an investment management subsidiary of Silk Road Finance, an investment bank, operating in Mongolia, Myanmar and other resource-rich frontier markets, offering merchant banking, investment banking and asset management services.  Eurasia Capital, the company’s subsidiary in Mongolia is a leading, award-winning investment bank providing capital raising, cross border M&A advisory, sales & trading and research services to its local, regional and international clients.  Mandalay Capital, SRF’s Myanmar-focused investment banking subsidiary offers corporate finance and advisory services to Myanmar companies as well as international and Asian strategic and financial investors seeking investment opportunities in Myanmar.  Global Nomad Family Office, a member of Silk Road Finance group is the first multi-family office in Mongolia and the Caspian region.

SOURCE:  Silk Road Management