Ex-CVC Asia head raises $200m SPAC

The SPAC will pursue Asia-based targets – outside of Greater China – in the technology, media, and telecom (TMT), business services, and consumer spaces. It will prioritise companies that are fully or partially owned by financial sponsors, leveraging what is described as “substantial pent-up demand for private equity exits in this region.”

The lengthy and cumbersome processes for listing on many Asian stock exchanges, a valuation gap between companies listed in Asia versus their peers in the US, and the relatively higher liquidity levels in the US are cited in the prospectus as reasons why merging with a US-listed SPAC might be attractive.

Since stepping back from his role at CVC in 2017, Kuan (pictured) has made investments through his family office, Generation Management. The family office controls the SPAC sponsor.

Numerous members of Generation Asia Acquisition’s management and investment team are contacts from Kuan’s time at CVC. Norimitsu Niwa and Yonghi Li, who serve as COO and investment advisor, respectively, used to work for the GP. Among the operating advisors are former senior executives at ex-CVC portfolio companies EIC Education, Arteria Networks, SPi Global, and Infastech.

Advisors Danny Hwang and Samuel Hwang, brothers who co-founded and led EIC, now run Vietnam-focused education business Point Avenue. Generation Management invested in the company’s Series A round last year.

Generation Asia sold 20m units at USD 11.50 apiece. Each unit comprises one class A ordinary share and one-half of one redeemable warrant. Each whole warrant can be converted into a common share at a price of USD 11.50 per share.

Several investors have signed forward purchasing agreements that commit them to acquire 8m units – under the same structure as the main offering – when the SPAC merges with a target. The forward purchasers are Atalaya Capital Management, Schoenfeld Asset Management, Apollo Capital Management, and Carnegie Park Capital. Carnegie has also invested in the sponsor.

The sponsor bought USD 6.8m in warrants. In addition, the sponsor and management subscribed to common shares for a nominal sum that converted into a 20% stake in the listed entity.

Once a target is identified, a majority of investors must vote in favour of the transaction. On completion, they can exercise their warrants and purchase shares or redeem some or all their shares for cash. If there is no deal within 18 months of the offering – although there is an option to extend to 24 months – investors get their money back.

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• Topics
• North Asia
• Southeast Asia
• Technology
• Consumer
• IPO
• SPAC
• TMT
• Roy Kuan
• CVC Capital Partners