CVC to seek $4b for fifth Asian fund

The impending fundraise was first reported by the Financial Times and since been confirmed to AVCJ by a source familiar with the situation. CVC declined to comment.

This will be the first fund launched under a new Asia leadership team, headed by Sigit Prasetya, who rose to prominence in Southeast Asia with deals such as Matahari Department Store. Prasetya’s appointment was announced to LPs in early 2017. Roy Kuan, the existing regional managing partner, was set to scale back his involvement over an 18-month period concluding in his retirement.

At the time, CVC’s fourth fund was approximately 40% deployed. The private equity firm has since picked up the pace of investment somewhat, with acquisitions such as foreign exchange trading platform Oanda Global Corporation, Malaysia’s Munchy Food Industries, and Japanese massage chain operator Riraku. Commitments sit in the $100-300 million range.

Liquidity events in the last 18 months include an IPO for Indonesian sports retailer MAP Aktif Adiperkasa and the sale of Philippines-based business process outsourcing provider SPi Global to Partners Group. However, there have also been some challenges in the portfolio, notably in China and Korea. As of March, Fund IV had reportedly generated a gross IRR of 27% and a 1.5x multiple.

Prasetya’s appointment coincided with the elevation of Brian Hong as co-head of Southeast Asia alongside Prasetya, while Hans Wang became head of Greater China and the regional team. Departures since then include Yi Luo and Steve Lim, heads of China and Korea, respectively, as well as Nobuaki Kurumatani, who left his post as president of Japan to become CEO of Toshiba Corporation.

CVC has been active in Asia since 1999 and closed its first regional fund in 2000 at $750 million. It then raised $1.9 billion for Fund III in 2005 and $4.1 billion for its fourth vehicle two years later.

Pan-regional fund managers have enjoyed a strong fundraising environment of late. Baring Private Equity Asia recently reached a first close of $4.5 billion on its seventh Asian fund, while The Carlyle Group closed its fifth Asia buyout vehicle at $6.55 billion in June. This followed Affinity Equity Partners completing a $6 billion fundraise at the start of 2018 and KKR raising a record $9.3 billion last year.

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• Topics
• Buyout
• Fundraising
• GPs
• CVC Capital Partners
• Asia