News & Updates

• Invests US$1 million into Singapore-headquartered professional esports organisation RSG
• First in series of up to ten planned investments to tap on growth potential of burgeoning Southeast Asian esports scene

Singapore, 15 April 2021 – Tembusu Partners Pte Ltd (“Tembusu”), a boutique private equity investment firm headquartered in Singapore, announced today that its FrontSight Capital Fund (the “Fund”) has made its maiden investment into RSG, a leading Singapore-based Southeast Asian professional esports organisation. The investment of US$1 million will be used to support RSG’s strategy to strengthen capabilities, expand the regional talent pool, and extend its market reach to better engage the gaming community and improve fan experiences.

The Fund’s investment into RSG is the first of up to ten planned investments of US$1 to US$2 million each, to invest in Southeast Asian esports teams and companies that are at the frontier of growth and innovation in the region. The Fund will also help build a track record and pave the way for greater opportunities and participation in the region’s flourishing esports industry through a second fund in the future.

Launched in late 2020, the FrontSight Capital Fund invests in emerging esports companies in Southeast Asia, seeking to leverage the exponential growth potential of esports in the region, where online entertainment and play is driven by digital adoption and transformation. The Fund is jointly managed by FrontSight Capital’s Managing Partners Mr. William Cao and Mr. Dennis Liu. The fund manager is Tembusu.

Mr. William Cao has extensive background in the technology space, having worked at Tencent and Boyaa Interactive, and also founded his own company, Qfun, which was subsequently sold in 2016 to NYSE-listed 500.com, an online sports lottery service provider in China. Currently, Cao is also a key investor in 5E Play, China’s largest ‘Counter Strike: Global Offensive’ matchmaking platform. Mr Dennis Liu is co-founder of Peak Investment Group, a leading private equity investment institution in Asia Pacific, focusing on artificial intelligence, games, fintech and blockchain technology companies. William’s relevant industry expertise and subject matter knowledge, coupled with Dennis’s eye for identifying the growing tech companies of tomorrow, will help steer the Fund to greater heights.

Mr. Andy Lim (林殷), Founder and Chairman, Tembusu Partners, said: “We launched the FrontSight Capital Fund as we recognised the immense potential in Southeast Asia’s esports sector, which is uniquely positioned for exponential growth. This fund, which is in line with our thesis-driven approach to invest in disruptive technology and trends that drive innovation in key focus sectors including consumer services, serves as a strategic platform for international investors to tap on the growth of esports in the region. Tembusu will continue to explore similar strategic investments in the region’s esports sector through this fund, thereby paving the way for more to participate in this fast-growing industry.”

Mr. William Cao (曹宇), Managing Partner at FrontSight Capital, said, “While the US and China currently lead the global gaming industry, the growth journey for Southeast Asia’s esports sector has only just begun and we are proud to be one of the first movers supporting the local esports industry. Across Southeast Asia, we see many young and untapped esports organisations that are well-positioned to expand regionally and globally. RSG is an example of such a company, with the right drive and ambition, coupled with a clear roadmap towards becoming one of the largest esports organisations in Southeast Asia. Looking ahead, we will make it our goal to support RSG’s leadership in the frontier of today’s market, and will continue to keep an eye on similar strategic investments into suitable esports organisations to reap synergistic benefits for all stakeholders.”

Founded in 2017, RSG is a Singapore-based professional esports organisation operating across Southeast Asia to engage the gaming audience through esports teams and content creators. The company’s premier esports teams specialise in notable games such as Mobile Legends, PUBG, Call of Duty and Warcraft, and have participated in over 200 tournaments collectively. Building on its presence in Singapore, Malaysia and Vietnam, RSG is in the midst of a regional expansion into emerging markets. The esports organisation also plans to compete in more games and reach 150 million gaming audience in Southeast Asia by 2021.

Mr. Jayf Soh (苏峻锋), Founder and Chief Executive Officer of RSG, said, “RSG is honoured to have the support of strategic investors who believe in our vision, recognise our track record and amplify our steady growth as a leading player in Southeast Asia. We remain committed to uplift esports in the region through competitive and community excellence and be a credible bridge for brands and investors to engage with the esports market. As we scale up and diversify our offerings to other aspects of the gaming market, RSG will take a sustainable growth approach to invest in new technologies, expand our operations regionally, and groom the talent pool. We are excited about this new milestone, as we gear up to put RSG on the global map of esports in the near future.”

Southeast Asia holds the largest revenue in the global gaming market, and almost two-thirds of the gaming population in Greater Southeast Asia are engaged in esports. According to market research firm Newzoo, revenue from esports in Southeast Asia is expected to grow at a CAGR of 24% from 2018 to 2023, one of the highest globally. In addition, the region’s gaming market size is also expected to register a CAGR of 8.5% over the forecast period of 2021 to 2026. A 2019 report by Niko Partners projected the number of PC gamers in Southeast Asia to rise to 186.8 million in the next five years, with 95% of that number taking part in some form of esports. With the combination of increased digital penetration, 5G network infrastructure and a fast-increasing user base, Southeast Asia is poised to be one of the fastest growing esports markets globally with exciting opportunities waiting to be uncovered.

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ABOUT TEMBUSU PARTNERS

Tembusu Partners is a boutique private equity investment firm that invests in promising early and growth-stage companies with a view to generate sustainable returns for both investee companies and investors. Besides supporting companies through mezzanine and equity financing, it also contributes operational expertise to help them grow. Headquartered in Singapore, its primary geographical markets are within Emerging Asia – comprising China, India and Southeast Asia. For more information, please visit www.tembusupartners.com.

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