Genesis Alternative Ventures has successfully raised $125 million for its second venture-debt fund, focusing on Southeast Asia. This marks a significant achievement for the private lender amid a challenging fundraising environment.
The fund has attracted a mix of returning and new investors. Notable returning backers include Sassoon Investment Corporation, Korea Development Bank, Silverhorn, Japan’s Aozora Bank, and Mizuho Leasing. New investors include Mizuho Bank and the U.S.-based investment platform OurCrowd.
Co-founder Ben J. Benjamin acknowledged the current slowdown in fundraising but emphasized that it is “business as usual” for Genesis. He stated, “There is never an easy time to raise money; it’s just more difficult sometimes, and this has been a challenging period.” Despite these challenges, there remains a strong appetite for venture debt, as evidenced by the capital commitments received.
The fund has already deployed approximately 20% of its capital to startups, including drone service provider Aonic, orthodontics startup Zenyum, and e-commerce returns startup Returnkey.
Yasuhiro Kubota, managing executive officer and co-CEO for the Asia-Pacific at Mizuho Bank, expressed enthusiasm about the partnership, stating, “We are delighted to come on board with Genesis on a shared vision in the venture-debt space. Southeast Asia continues to be an exciting region with a thriving startup ecosystem.”
The fund size was intentionally moderated, with a target of between $120 million and $150 million, reflecting a more cautious approach compared to the larger venture capital funds raised in recent years. Dr. Jeremy Loh, co-founder and partner at Genesis, noted that this fund is appropriately sized for the current ecosystem, representing an increase from the first fund, which raised $80 million.
Dr. Loh pointed out that while venture debt remains the primary contributor to their business, many startups are still unfamiliar with how to effectively utilize debt financing. The presence of larger players, such as HSBC, has helped mature the venture debt ecosystem in the region.
In a notable addition to the firm, Philip Yeo, former chairman of the Singapore Economic Development Board, has joined the advisory board at Genesis. Dr. Loh expressed excitement about Yeo’s involvement, calling him a “true statesman and visionary in the technology and investment space.”