Carlyle confirms appointment of Indonesia head

Louis' move was first reported last month, with suggestions that Carlyle would become the first global buyout firm to open an office in Indonesia. The firm completed its first investment in the country last autumn - buying a minority stake in telecom towers operator Solusi Tunas Pratama (STP) for $100 million - after several years of thwarted efforts.

Louis has been involved in numerous significant capital markets and M&A transactions, including BHP Billiton's sale of a minority stake in the Kalimantan Coal Project to Adaro Energy and British American Tobacco's acquisition of Bentoel Cigarettes.

"Rajiv is one of the most experienced and successful leaders in the investment banking industry in Indonesia," said Greg Zeluck, managing director and co-head of the Carlyle Asia buyout team. "His strong networks and deep knowledge of Indonesia industries will greatly benefit Carlyle's efforts in Indonesia as we continue to expand our business in the local market."

Carlyle, which has raised more than $1 billion for its fourth regional buyout fund with a final target of $3.5 billion, has struggled to source deals in Southeast Asia, particularly Indonesia. The PE firm has four investment professionals based out of Singapore - supported by staff based in other offices in Asia - and lost Anand Balasubrahmanyan, a senior managing director, last year.

As Southeast Asia's largest market, boasting favorable demographics and rising domestic consumption, Indonesia is one of the reasons global buyout firms are scaling up their presence in Singapore as a regional hub. LPs have observed that Indonesia offices are likely to follow as these firms have to demonstrate a commitment to a country in which they are so keen to invest.

Despite the enthusiasm, large-cap deals are difficult to come by and the track record of buyout funds is mixed. While TPG Capital and CVC Capital Partners have managed to execute significant transactions, the former through an alliance with local player Northstar Pacific Partners, others have found it more difficult.

Affinity Equity Partners was the first of the pan-regional firms to set up a Jakarta office but it took three years to complete its first deal in the country. It acquired a minority stake in auto services group Mitra Pinasthika Mustika (MPM) last year for about $100 million, investing alongside Saratoga Capital. MPM is now preparing for an IPO.

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