Japanese banks commit to CVC's fourth Asia fund

According a JBIC release, SMTB and JBIC will each invest $50 million to CVC Capital Partners Asia Pacific Fund IV. The vehicle launched last year seeking $3 billion. The hard cap includes a $200 million GP commitment.

The fund will pursue deals of $60-300 million in Greater China, Japan, South Korea and Southeast Asia. The target return is 20-30% gross IRR and a gross multiple of 2-3x.

It is expected that having SMTB and JBIC as a partners will raise CVC's profile in Japan, giving the firm better access to strategic investors to which it can exit is portfolio companies. This is the first commitment JBIC has made into a traditional buyout fund. The government-backed bank typically invests in infrastructure and social development programs,

Other LPs in the fund include Pennsylvania Public School Employees' Retirement System (PSERS) and Teachers' Retirement Systems of Louisiana (TRSL), which agreed to invest $100 million and $75 million, respectively, last December.

CVC's first Asia fund, a 2000 vintage vehicle that closed at $750 million, delivered a net IRR of 31.4% and a net multiple of 2.2x. Fund II was problematic, receiving commitments of $1.9 billion in 2005 but the net IRR stands at -9.6% and the net multiple at 0.6x.

CVC closed Fund III at $4.2 billion in 2008 and it has so far delivered a net IRR of 16.1% and a net multiple of 1.5x.

CVC has been particularly active in China recently with trio of buyout deals in recent months.

Last week, it confirmed the acquisition of Chinese dumpling chain Da Niang Dumplings for an undisclosed sum. Prior to that, it acquired a controlling stake in overseas education counseling service provider EIC for a reported $200 million. The third China control deal - an acquisition of high-end restaurant chain South Beauty Group - has yet to be officially announced.

Meanwhile, in Southeast Asia, the private equity firm has completed two partial exits from Indonesia's Matahari Department Store - a $1.3 billion private placement last year and a $215 million sale earlier this month. 

Last year it also acquired a majority stake in SPi Global, a business process outsourcing (BPO) unit of Philippine Long Distance Telephone. It was the Philippines' largest-ever PE buyout.

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• Topics
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• North Asia
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• Japan
• CVC Capital Partners
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