KV Asia hits $100m first close on Fund II

Most of the eight LPs in Fund I have returned, among them Adams Street Partners and HarbourVest Partners, according to a source close to the situation. Other investors in Fund I, which raised $263 million in 2013, include Morgan Stanley Alternative Investment Partners, Hermes GPE, Cambridge University, Alpha Associates, Industriens Pension, and Alaska Permanent Fund.

Fundraising for Fund II was tentatively initiated as early as 2019 but delayed to focus on the exit of Malaysian grocery retailer TF Value Mart to Intermediate Capital Group. The process began in earnest in January this year.

The fund will pursue the same strategy as its predecessor, seeking primarily control buyouts with some scope for significant minority positions where a board seat and operational influence can be obtained. It will invest across Southeast Asia with an emphasis on Malaysia, Indonesia, and Vietnam. Singapore is a core market but could be less of a focus due to increased valuations locally, the source added.

KV typically writes checks in a range of $25-75 million. Sector targeting to date has concentrated on essential consumables, where the goal is to acquire local champions in the vein of TF Value Mart. Other standout investments historically include Malaysian university operator APIIT Education Group.

KV was founded in 2010 by Karam Butalia and Vibhav Panandiker, both formerly of Standard Chartered Private Equity. Butalia was global head of private equity at Standard Chartered from 2002 to 2008 and spent 24 years with Citigroup in Asia, where he founded CVC Asia Pacific Fund I and served as group head of Indonesia. Panandiker focused on Southeast Asia at Standard Chartered and has also filled roles at Citigroup and JP Morgan.

Recent middle-market fundraising in Southeast Asia includes Tower Capital, a GP that previously operated on a deal-by-deal basis, reaching a first close of about $250 million on its debut fund. Meanwhile, Novo Tellus Capital Partners closed its second fund at $250 million and Thailand’s Lakeshore Capital, which targets the Greater Mekong region, raised $150 million for a second vehicle. Other GPs in the market include Navis Capital Partners and Creador.

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• Topics
• Southeast Asia
• Fundraising
• Buyout
• Growth
• Singapore
• KV Asia
• Adams Street Partners
• HarbourVest Partners