China's Sailing exits as US GP backs Maldives resort chain

Travel and leisure-dedicated KSL is currently investing its fifth private equity fund focused on the sector, which closed in May at $2.7 billion. According to travel industry researcher Skift, the GP is partnering with Singapore's GIC Private to jointly take a 35-40% stake in Soneva and invest $200 million in an expansion across the Maldives and Japan over the next three years.

Sailing acquired a minority stake for an undisclosed sum in 2014, which was said at the time to be the largest-ever Chinese private investment in the Maldives. Value-add efforts included the opening of Soneva Jani, which is positioned as an environmentally sustainable luxury resort, as well as the construction of several residential villas. These were installed over water, rather than on the beach, to better fit the tastes of Chinese tourists. Expansion into China was originally part of the plan.

“The more we have gotten to know Soneva, the more excited we are about the opportunities to help Soneva grow,” Tina Yu, a principal at KSL, said in a statement, describing “experiential” travel as an expanding market of interest. “Soneva has 25 years of experience operating at the very highest level and have been pioneers in creating rare authentic experiences for their guests. We look forward to a long and successful partnership with Soneva and its management team.”

KSL describes its primary target areas as hospitality, recreation, clubs, real estate and travel services. It claims to have raised about $12 billion in equity and debt since inception in 2005. Previous activity in Asia Pacific includes the acquisition of Australian expedition cruise company Orion for $20 million. Last year, KSL backed Baillie Lodges, an Australian luxury accommodation provider focused on unique locations in wilderness areas.

Set up in 2012, Sailing operates the first cross-border, renminbi-denominated private equity fund. The vehicle was launched by Shanghai International Group with a target of RMB50 billion ($8 billion), to be raised from domestic enterprises. It reached a first close of RMB12 billion.

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• Topics
• South Asia
• Consumer
• Expansion
• Southeast Asia
• Exits
• Thailand
• GIC Private
• sailing capital
• Growth capital