Affinity reaches $2.5b second close on Fund IV

The fund, which reached a first close of $1.5 billion in March, has a hard cap of $3.5 billion. Its first investment came last week with the purchase of a majority stake in South Korean digital music platform Loen Entertainment from SK Telecom for KRW265.9 billion ($239 million).

Investors that have disclosed involvement in Fund IV include Washington State Investment Board, which put in $300 million, three times its commitment to Affinity's third fund, and Montana State Investment Board, which is investing $20 million, compared to $15 million for Fund III. Maine Public Employees' Retirement System and New Mexico State Investment Council committed $30 million and $75 million, respectively.

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).

According to CalPERS, Fund III had delivered a net IRR of 16.5% and a net multiple of 1.54x as of year-end 2012. This compares to -1.9% and 0.9x for Carlyle Asia Partners III (2008), 0.3% and 1.01x for TPG Asia V (2007), and 13.5% and 1.48x for KKR Asian Fund I.

KKR recently announced a final close of $6 billion on its second regional fund, the largest Asia private equity vehicle ever raised. Carlyle and TPG are both still in the market with their latest funds, each of which is targeting $3.5 billion.

Affinity was created in 2002 following a spin-out from UBS' Asia private equity business led by K.Y. Tang. MVision is serving as placement agent for Fund IV.

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