Timah Partners, a Singapore-based permanent capital firm, has announced the acquisition of a S$60m umbrella debt facility aimed at facilitating SME acquisitions in Singapore. This innovative facility, supported by UOB, RHB Bank, and Genesis Alternative Ventures, is structured to enable the acquisition of multiple small and medium-sized enterprises (SMEs) with strong cash flows, including asset-light businesses that typically face financing challenges.
The facility is designed as an umbrella delayed-drawdown arrangement, providing a pre-negotiated framework for financing and executing SME acquisitions over time. Dennis Chua, Founder and CEO of Timah Partners, highlighted the importance of clarity and trust in succession planning, stating, “Succession is a big life decision for a founder. It’s not just about price.”
This move comes amidst a growing SME succession crisis in Singapore, where many founders are nearing retirement without clear succession plans. Timah’s model offers a solution focused on continuity and long-term ownership, providing an alternative to traditional private equity, which has become more selective in Southeast Asia.
Eric Lian, Head of Group Commercial Banking at UOB, emphasised the bank’s commitment to supporting SMEs, stating that the partnership with Timah Partners will help catalyse resilience and growth for local enterprises. Serena Hong, Head of Commercial Banking at RHB Bank, added that the facility offers a structured pathway for founders to navigate succession whilst preserving their business legacy.
Timah Partners aims to use this facility as a stepping stone for broader efforts to ensure SME continuity in Singapore, with plans to extend its relationship with lending partners into wider financing and banking support as these businesses grow.
