Affinity reaches $1.5b first close on Fund IV

About 20 LPs, most of them existing investors, participated in the first close, according to sources familiar with the situation. The LP base is broad, taking in pension funds, sovereign wealth funds, fund-of-funds and family offices, among others. MVision is serving as placement agent.

Investors that have disclosed involvement include Washington State Investment Board, which put in $300 million, three times its commitment to Affinity's third fund, and Maine Public Employees' Retirement System, which has committed $30 million.

Affinity Asia Pacific Fund III took about four months to reach a final close of $2.8 billion in 2007. The LP base featured the likes of California Public Employees' Retirement System (CalPERS) and California State Teachers' Retirement System (CalSTRS). Affinity was created in 2002 following a spin-out from UBS' Asia private equity business led by K.Y. Tang.

The fundraising environment in Asia is tightening, with $18.98 billion raised in the second half of 2012, according to AVCJ Research. Only $46.8 billion was raised for the year in full, down 35.8% on 2011 and the lowest annual total since 2009.

Several global and regional buyout firms are currently in the market raising Asia funds, besides Affinity. KKR has still to announce a final close on its second pan-regional vehicle, said to be around $6 billion, while RRJ Capital has reportedly raised $3.5 billion for its second fund, having originally targeted up to $5 billion.

The Carlyle Group is seeking $3.5 billion and TPG Capital is looking for up to $4 billion, while both MBK Partners and Morgan Stanley Private Equity Asia have reached first closes as they work towards targets of $2.25 billion and around $1.5 billion, respectively.

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• Topics
• Fundraising
• Buyout
• Fundraising
• Affinity Equity Partners
• Asia
• buyout