AlpInvest leads $450m stapled secondary for Southern Capital

The total size of the deal – in which GIC Private is also a participant – is $450 million.

The primary piece of $80 million will go towards an expected first close of $220 million on Fund IV, according to a source familiar with the situation. The full target for the fund is $500 million. Southern initially briefed investors that it would seek $650 million but the number was revised downwards prior to the official launch.

The GP’s second fund closed at $300 million in 2009 and made investments in China as well as Southeast Asia. The geographical remit was reduced to Malaysia, Singapore, and Indonesia for Fund III. Southern raised $408 million for that vehicle, having increased the hard cap from $350 million to accommodate strong LP demand. 

Fund II has three remaining portfolio companies, all of which are based in Southeast Asia. They include Qualitas Medical, a Malaysia-based healthcare services provider that is reportedly targeting a Singapore IPO. The overall fund portfolio, excluding the previous China investments, is said to be tracking at more than 2.5x.

Southern concentrates on buyouts of businesses with enterprise values of up to $300 million. Education features strongly in Fund III with companies such as Canadian International School and Star Learners in Singapore and Malaysian university operator HELP International. Engineering services are represented through Greatearth – known as UE E&C until its privatization – and Catermas.

Stapled secondaries and other fund restructurings are gaining traction in Asia. In the past year, Partners Group took stakes in two of EQT Partners’ flagship buyout funds and made a primary commitment to the firm’s latest Asia vehicle. Meanwhile, Canada Pension Plan Investment Board (CPPIB) subscribed to a preferred equity security linked to an existing Olympus Capital Asia fund alongside an agreement to provide primary capital.

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• Topics
• Secondaries
• Secondaries
• Fundraising
• Southeast Asia
• Southeast Asia
• Secondaries
• Southern Capital
• AlpInvest Partners N.V.
• GIC Private