Mars Growth Capital, a Singapore-based technology investment firm and debt provider, announced the initial closing of its first equity fund, Dragon Fund I, with an initial LP commitment by Mitsubishi UFJ Financial Group, Inc. of up to US$500m.
The fund is targeting final close next year.
Dragon Fund I, which marks the firm’s entry into equity investing, will make growth equity investments in private, mid to late-stage tech and tech-enabled companies. Initially focusing on the Asia-Pacific region, deal sizes will range from US$20m to US$100m with flexibility to make primary and secondary investments.
Founded in 2021, Mars Growth Capital is a joint venture between Mitsubishi UFJ Financial Group, Inc. and Liquidity Group. For the past 2 years, the firm, through two venture debt funds, has been providing non-dilutive venture debt to tech and tech-enabled companies in the Asia-Pacific and EMEA regions and has built a portfolio of 30+ companies, with an AUM of US$750m.
MUFG as a sole LP provider of the funds decided to increase the LP commitments to those two venture debt funds by US$250m to US$1.0Bn to continuously support promising startups both in Asia-Pacific and Europe. Together with the new Dragon Fund I, the aggregate AUM reaches to U$1.5Bn to be invested through both debt and equity.
Commenting on the fund launch, Ridhi Chaudhary, Managing Director and a GP Partner of Dragon Fund I, said: “With flexibility to make primary and secondary investments, Dragon Fund will look to invest in companies with exceptional management teams, strong execution track record and high growth potential. With the power of Liquidity Group’s ML platform, the investment teams will be able to evaluate investment opportunities comprehensively and at a faster pace while investing in the most attractive ones to generate superior returns for the LPs. The technology will also allow for automated and real time monitoring of the portfolio investments.“
Founded in 2021, Mars Growth Capital leverages machine learning and decision science technology to deploy both non-dilutive, as well as equity financing solutions in the range of $3-100M in as little as 48 hours, to mid-market, late-stage, and pre-IPO technology companies in APAC, Japan, and Europe.