Aureos invests $5m in Philippines

Aureos has invested $5 million in a semiconductor business in the Philippines, one of the least frequented private equity destinations in Southeast Asia.

Aureos, an emerging market growth capital provider, has invested $5 million (€3.7 million) from its South East Asia Fund (ASEAF) in Cirtek Electronics Corporation, a semiconductor business in the Philippines, which is expanding to meet a growing order book.

Philippines is one of least frequented investment destinations for funds because of the country’s volatile political history and a number of write-offs experienced by existing private equity firms.

The cyclical semiconductor business, on the other hand, has attracted buyout firms elsewhere. Recent examples include The Carlyle Group in Taiwan and Affinity Equity Partners and TPG Capital in Singapore.
Aureos’ investment, which involved a mix of redeemable convertible notes and a loan, will be used for capital expenditure and working capital.

Cirtek’s growth has led to the completion of a second plant, with a capex and working capital requirement for 2007 estimated at $5 million. The company posted revenues of $23.7million in 2006.

ASEAF is one of the 10 funds established by Aureos Capital.