[Portfolio Feature] Tembusu Partners’s e-sports fund invests US$1M in Singapore’s RSG

[First Published in e27 – April 15, 2021]

Tembusu Partners, a Singapore-based boutique private equity investment firm, announced today its FrontSight Capital Fund has invested US$1 million in local e-sports organization RSG.

The e-sports fund’s maiden investment 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.

Tembusu Partners said in a press note RSG is the first in its ten planned investments of US$1 to US$2 million each in Southeast Asia’s e-sports teams and companies that are at the “frontier of growth and innovation in the region.”

The PE firm plans to launch a second fund in the future to capitalise on the growing e-sports industry in Southeast Asia.

Launched in 2020, the FrontSight Capital Fund invests seeks to leverage the exponential growth potential of e-sports in the region, where online entertainment and play is driven by digital adoption and transformation. The fund is jointly managed by Managing Partners William Cao and Dennis Liu, and managed by Tembusu Partners.

“We launched the fund as we recognised the immense potential in Southeast Asia’s e-sports 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 e-sports in the region,” noted Andy Lim, Founder and Chairman of Tembusu Partners.

“Tembusu will continue to explore similar strategic investments in the region’s e-sports sector through this fund, thereby paving the way for more to participate in this fast-growing industry,” he added.

Founded in 2017, RSG is a professional e-sports organisation operating across Southeast Asia to engage the gaming audience through e-sports teams and content creators. Its e-sports 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 organisation also plans to compete in more games and reach 150 million gaming audience in Southeast Asia by 2021.

“While the US and China currently lead the global gaming industry, the growth journey for Southeast Asia’s e-sports sector has only just begun. Across Southeast Asia, we see many young and untapped e-sports organisations that are well-positioned to expand regionally and globally,” opined Cao.

“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,” said Jayf Soh, Founder and CEO of RSG.

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 e-sports. According to market research firm Newzoo, revenue from e-sports in Southeast Asia is expected to grow at a CAGR of 24 per cent 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 per cent over the forecast period of 2021 to 2026.


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