Delta Capital is seeking to raise $100M for its third fund that will target bigger-sized and control deals in the frontier market, according to managing partner Nick Powell. Limited Partners ("LP") in Delta Capital's existing funds include development finance institutions such as the UK's CDC Group, Norway's Norfund and Denmark's IFU. Institutional LPs accounted for 50% of Delta Capital's second fund, the contribution is expected to increase to 80% for its third fund.
Delta Capital is looking to fundraise at least $100M for its third fund. The idea of an outside investment was elusive as the previous isolation forced Myanmar businesses to grow organically. However, perspectives are changing. Deal count has risen from just 3 in 2016 to 21 in 2020. “It’s still predominantly a VC market with people doing smaller deals, which is a much busier area,” Powell said. “There are only a couple of shops that do around the $5-10M area and once you get to $10-30M there’s only us or the regional funds”.
Delta Capital and Daiwa PI Partners have jointly invested $12.6M in plastic bottles recycler Commercial Plastics Company (“CPC”). The investment in CPC is a testament to Delta Capital’s commitment to sustainability. CPC will become the first food-grade bottle-to-bottle recycler in Myanmar, supplying to domestic and foreign plastic converters. The company expects to recycle over 20% of Polyethylene Terephthalate (“PET”) bottles produced in Myanmar and save over 15,000 metric tonne of carbon emissions per year.
Delta Capital and Daiwa PI Partner announced the investment of $12.6M in Commercial Plastics Company (“CPC”), a post-consumer plastics bottle recycler in Myanmar, incorporated in 2016 with the aim to reduce Myanmar’s reliance on PET import. The funding will proceed toward equipment to expand its recycling capacity at a time when environment awareness and education are rising in the country. Myanmar has a favorable backdrop with an estimated 64% PET bottles collection rate compared to Southeast Asia’s average of 26%.