Asia Alternatives fund-of-funds closes on $2b
Asia Alternatives has reached a final close of USD 2bn for its sixth private equity fund-of-funds and several related vehicles. It is the firm’s largest raise since its inception in 2015.
More than 85% of committed capital came from pre-existing relationships. LPs include The Boeing Company, Cathay Life Insurance, The Dai-ichi Life Insurance, Intermountain Healthcare, Comprehensive Financial Management, Jasper Ridge Partners.
US pensions were represented by the likes of New York State & Local Retirement Systems, New York State Common Retirement Fund, San Francisco Employees’ Retirement Fund, Florida State Board of Administration, Maryland State Retirement and Pension System, Minnesota State Board of Investment, Public Schools Retirement System of St. Louis, and Virginia Retirement System.
The largest of the funds is Asia Alternatives Capital Partners VI (AACP VI), which along with its parallel vehicles, closed with combined commitments of USD 1.1bn against a target of USD 1bn.
AACP V and AACP IV both closed on USD 1.8bn in 2017 and 2015, respectively. Asia Alternatives raised USD 1.5bn for its third fund in 2012, which represented a significant step up in size from USD 950m in the previous vintage.
AACP VI will target a diversified portfolio of top-performing local Asian fund managers, maintaining a strong commitment to China, where growing consumer demand and technological innovation is believed to continue underpinning short- and long-term opportunities. Target strategies will include buyout, growth, and expansion, VC, special situations, direct co-investments and secondaries.
“We have remained focused on expanding our relationships and expertise across Asia, utilizing our local presence to gain access to opportunities within different markets and strategies,” Akihiko Yasuda, a managing director at Asia Alternatives, said in a statement.
“While China continues to be our largest single country exposure, our partnerships with buyout firms in Japan have also become significant sources of performance in recent years.”
Asia Alternatives is one of the oldest independently formed Asian private equity fund-of-funds and notable as the first to receive a qualified foreign limited partner (QFLP) license in China. The QFLP program gives international investors the opportunity to invest in renminbi-denominated companies.
“Our extensive experience investing through market cycles and the lasting relationships we have forged with leading fund managers across Asia provide a unique perspective and the ability to take advantage of the opportunities market volatility has created,” Melissa Ma, a co-founder and managing partner at Asia Alternatives added.
The firm has more than 50 professionals across offices in Hong Kong, Beijing, Shanghai, and San Francisco. Assets under management now stand at about USD 16.5bn.
Eaton Partners and Diamond Dragon Advisors acted as placement agents for the latest fund-of-funds, while Ropes & Gray served as legal counsel.
More on Greater China
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.