Financial Times

Aureos Capital, a leading global private equity investment firm specializing in small and medium-sized enterprises (SMEs) in emerging markets, said last week it has closed two investments worth US$ 5.3 million from its newest fund - Aureos South Asia Fund (ASAF) during July/ August.

In Sri Lanka, a US$ 1.3 million investment was made in Dutch Lanka Trailer Manufacturers Ltd. (DLT). DLT is a manufacturer of various types of trailers for the local and export market.

During the last three years, DLT’s revenue and profits have grown by CAGR of 45% and 34%, respectively. Exports account for over 60% of DLT’s revenue and over the last few years DLT has secured an impressive list of clients such as Dubai Ports, P&O, SAGT, Tata Motors, A.P. Moller Terminals (Maersk), SLPA, and Hutchison Ports from Middle East and South Asian countries. Aureos’ investment in DLT was part of a US$ 2 million private placement. DLT will utilize the investment to fund its joint venture with Tata International and to expand capacity in its local factory at Kelaniya.

An Aureos statement said DLT is planning a listing in the Colombo Stock Exchange in two years. DLT’s Managing Director Dilip Kodikara said that they are very happy to partner with an investor like Aureos and said that he hopes to tap new international markets for DLT through Aureos’ presence in emerging markets where the demand for trailers are growing fast. DLT’s current capacity of 800 trailers per annum will be increase to approx 3,000 units after local and Indian expansions.

In India, ASAF made a US$ 4 million investment in Accutest Research Laboratories (Pvt) Ltd (Accutest). Accutest is a Mumbai based contract research organization, currently focusing on Bioavailability (BA) and Bioequivalent (BE) studies. BA and BE studies are normally availed of by pharmaceutical companies at the time of launching a drug which has already gone off-patent. Accutest currently has facilities in three locations in West India – Mumbai, Pune and Ahmedabad.

Commenting on the two new investments, Aureos Capital’s Managing Partner for the South Asia Region, Nissanka Weerasekera, said that they are very happy that they closed two investments within 6 months of closing ASAF. Weerasekera said they are evaluating several other investments in the region and the investment deal flow is very encouraging.

Aureos is a prominent private equity fund manager, focused exclusively on SMEs in the emerging markets, with US$ 557 million under management in 24 funds. Aureos has 22 offices across Sub-Saharan Africa, Central America, South-East Asia, South Asia, China and the Paci9c Islands.