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| Yawadwipa Companies Formally Launched with US$1bn Indonesia-focus #PrivateEquity Fund as Part of Strategy |
•Co-Founder C. Christopher Holm Named CEO and Head of Yawadwipa
•Prasetyo Singgih Appointed Chief Operating Officer and General Counsel
•US$1 Billion Java Fund Seeking Regulatory Approval
•Core Advisory Services
•Alliance Discussions
A collection of well-established Indonesian partners and two key executives formally announced today the launch and initial funding of the Yawadwipa Companies ("Yawadwipa" or the "Company"), a merchant banking operation comprised of entities initially focused on certain investment management activities, namely private equity (herein the "Java Fund"), and traditional strategic advisory services for the benefit of Indonesia.
Gita Wirjawan, Indonesia's Minister of Trade, former Chairman of the Indonesia Investment Coordinating Board or Badan Koordinasi Penanaman Modal (BKPM) and prominent investment banker and investor said, "Private equity in Indonesia, though around for several years already, is relatively nascent given its sheer size of less than US$5 billion of asset under management in the context of a country with a GDP of US$1 trillion (PPP adjusted vs. a nominal GDP of around US$800 billion) and a stock market capitalization of approximately US$400 billion, so much is yet to be reaped in the private equity space. Thus the formation of Yawadwipa and its ability to attract first-rate global banking and investing talent to drive cross-border activity and help further the development of Indonesia is a testament to the recent ascendancy into the investment grade status, on the back of proven fiscal sustainability, monetary stability, and continuing reform mindedness, making Indonesia poised further to go on a positive trajectory."
THE YAWADWIPA PARTNERSHIP:
The firm will be operated by a small group of executives ("Partners"). C. "Chad" Christopher Holm will serve as Chief Executive Officer and Head of Yawadwipa as well as Chairman of the Investment Committee of the Java Fund. He has agreed to enter into a long-term employment agreement and contribute an additional targeted US$25 million to benefit the Company, the Java Fund and certain local social causes. Mr. Holm is one of the most prolific and experienced dealmakers based in Asia today, having completed more than 50 strategic transactions in 20 countries worth over an aggregate US$150 billion, with US$35 billion in Asia and US$75 billion of cross-border work over a nearly 20 year career. He has also helped lead IPOs and other capital raises for clients with an aggregate valuation of over US$100 billion. In 2011, he advised on two of the largest M&A transactions in Asia ex-China. He previously served as a senior executive at Bank of America Merrill Lynch, Citigroup and Lazard, during which time he led both regional and global efforts. Select strategic clients have comprised many of the largest and most distinguished entities in the world, including BlackRock, Citigroup, NYSE Euronext, PIMCO, Blackstone, Hellman & Friedman, Sumitomo Mitsui, AXA, GE and IBM.
In describing Yawadwipa, Mr. Holm said, "Our partnership is guided by entrepreneurial collaboration, whether with clients, market participants, the communities we serve or one another. We are disciplined problem solvers focused on delivering results for clients through intellectual and equity capital while always aligning interests. The collective attributes of our partners, both executive and non-executive, uniquely differentiate us, though we humbly accept our position as a new contributor. We have high respect for a number of firms and individuals in the market today and look forward to working with them in the future."
Hamid Biglari, Vice-Chairman of Citicorp, the strategic operating arm of Citigroup, member of Citigroup's Operating Committee and Head of Emerging Markets and Content remarked, "I have had the good fortune of working closely with Chad as a colleague. Together we tackled some of the more complicated strategic and financial assignments in the past decade. Chad has consistently proven to be one of the most analytical and savvy finance professionals of his generation. He has been a trusted advisor to me and a friend to our firm." In addition to his many roles at Citi, Dr. Biglari is a member of the Council on Foreign Relations and a member of the Board of Trustees of the Asia Society. He previously served as co-head of McKinsey & Company's investment banking consulting practice.
The Company is also pleased to announce that Prasetyo Singgih has been appointed as Chief Operating Officer and General Counsel of Yawadwipa. In this capacity, Mr. Singgih will oversee all internal, compliance and government affairs, while also playing an active role in the firm's business development and deal sourcing efforts. Mr. Singgih will additionally be a member of the Investment Committee of the Java Fund. Mr. Singgih is Vice Chairman of the Indonesian Chamber of Commerce and Industry (KADIN) Committee in China and the Senior Partner of Singgih & Partners, a law practice based in Jakarta. After having started and built his own stock brokerage firm, Inti Fikasa Securindo, in Jakarta, he then excelled with General Electric Company's operations in Indonesia and the U.S. Subsequently, he became a Director of Manulife Indonesia during which time it acquired ING Aetna and Zurich Life and merged John Hancock's operations in Indonesia, before he ultimately established his own specialty law practice focused on political and business advisory and various areas of litigation.
Mr. Singgih commented, "I am proud to be an inaugural Partner of Yawadwipa and believe that we have immense potential to do exceptional things for our country's development. In executing the business plan, our philosophy is simple -- be patient but persistent while consistently demonstrating integrity, professional conduct, and excellence in execution. Our franchise, today and tomorrow, is about trusted relationships and sound judgment -- without these we have nothing."
INVESTMENT BUSINESS OVERVIEW:
The Company is in the process of securing all required regulatory approvals for the official launch of its private equity fund, the Java Fund, as well as a limited set of other ancillary offerings. Based on strong feedback and detailed analysis, the Company will target a fund raise of US$1 billion, with the majority of investments to be made to further the development of Indonesia. If the target is achieved, the Java Fund will be one of the larger non-Government sponsored vehicles of its type in Southeast Asia. Required approvals are anticipated towards the end of the first quarter of 2012. At such time, the Company intends to the formally disclose details surrounding the balance of its core executive team, the majority of which are Indonesian nationals, and more robustly describe its organizational structure and the Java Fund.
"Continuing volatility and global market dislocation benefits scaled and experienced investors with deep domain expertise. History has proven fragile and choppy markets are most often when significant excess returns are achievable. The uncertainties worldwide combined with the relative macro growth of the region play directly to our strengths. We like our profile and believe as Partners we provide a unique conduit to tap the attractive but complicated Indonesian market," said Mr. Holm.
Suryo B. Sulisto, Chairman of the Indonesian Chamber of Commerce and Industry (KADIN), founder of PT Satmarindo Group and the President Commissioner of Bumi Resources Tbk, commented, "KADIN, the Indonesian Chamber of Commerce and Industry welcome the formation of private equity funds for Indonesia in general and Yawadwipa as the new addition. This is not only testimony of the confidence international business communities have of the way our economy is managed, but also shows the attractiveness of enormous business opportunities that Indonesia could offer as an Investment destination."
ADVISORY BUSINESS OVERVIEW:
In part because of its affiliation with the proposed Java Fund and its ancillary offerings, Yawadwipa's positioning in the market and the opportunities for its advisory franchise are uniquely broad. The nature of the Yawadwipa business permits it to engage in activities avoided by others, allowing the firm to conduct itself in a distinct fashion.
Core initial advisory services will include, but not be limited to:
•In-market traditional strategic advice, including M&A and generational-transition services
•Cross-border strategic and execution services for foreign clients seeking to enter or grow in Indonesia, and Indonesian clients looking to transact abroad
•Restructuring, privatization and SOE rationalization advice and execution
•Capital raising advisory
•Various tactical defense and other client defense business
ALLIANCE DISCUSSIONS:
Yawadwipa is currently exploring the possibility of forming domestic and international alliances to give clients more efficient linkage to a variety of complementary products and services in the capital, loan and advisory markets. Such alliances may result in certain levels of exclusivity, preferred access or joint product branding.
"The alliance discussions are at early stage and we have yet to center on the right set up that best assists our interests while maintaining reasonable optionality over the long term. Partnerships and deep relationships are consistent with our model, though we are cognizant of the commitment that comes from strategic tie-ups. We will proceed with caution as we continue evaluating various structural iterations," commented Mr. Singgih.
FURTHER INFORMATION:
Interested parties may visit the Company's in-process website at www.yawacompanies.com or contact it directly at info@yawacompanies.com
. Press-related inquiries may be sent to media@yawacompanies.com
. Prior to full completion, the Company's website will contain a downloadable business and strategic profile of Yawadwipa.
Yawadwipa, Sanskrit for the noble island of Java, is a merchant banking operation comprised of a collection of regionally and globally focused entities initially engaged in investment management and strategic advisory. A Yawadwipa entity will serve as manager of the Java Fund, which will focus on private equity investing and intends to raise US$1 billion, making it one of the largest regionally dedicated funds. Key to the Company's strategy is adherence to a model where advice and equity capital in combination are consistently delivered to clients and investors. Yawadwipa also seeks to complement its core services with additive products and partnerships, including through acquisition.
SOURCE Yawadwipa Companies
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