TR hits $350m first close on fifth Asia secondaries fund - update
TR Capital, an Asia-focused private equity secondaries investor, has reached a first close of USD 350m on its fifth fund, which has an overall target of USD 600m.
Colin Sau, a managing partner at the firm, told Mergermarket, AVCJ's sister publication, that the first close came in the first week of January. He added that TR Capital hopes to reach a final close by mid-year. TR said in a statement that nearly 90% of existing LPs re-upped in the first close.
TR raised USD 350m for its fourth flagship fund, which closed in February 2021. The vehicle is now more than 80% deployed. Sau said a final investment, expected during the first half of 2023, would take the fund to full deployment.
Fund V will have an eight-year lifespan with the option to extend by up to two years, according to two sources familiar with the situation. It will make 13-15 investments in total.
The sources added that LPs in the new fund range from family offices to wealthy individuals. TR Capital has not engaged a placement agent on a fund-wide mandate, but it is working with boutique advisor Avenue Alternatives to target LPs in the Middle East, according to a third source familiar with the situation.
Sau noted that TR Capital would target technology, consumer, and healthcare deals across India, China, and Southeast Asia. The firm opened a Singapore office last year – adding to existing bases in Hong Kong, Shanghai, Shenzhen, and Mumbai – with a view to doing more in Southeast Asia.
Founded in 2007, TR Capital has more than USD 1.2bn in assets under management and has completed about 40 investments to date.
In past vintages, there has typically been a 50-50 split between fund restructurings, whereby TR Capital works with managers to provide liquidity to LPs in existing funds, and direct acquisitions of equity positions in companies from financial sponsors.
Most recently, the firm led a USD 150m transaction that saw three investments managed by India-based Samara Capital spun out into a continuation fund, as announced. These were the sole remaining privately held assets in Samara’s second fund, which will reach the end of its life in 2024.
TR Capital has also supported CNY-to-USD fund restructurings for China-based Kinzon Capital and Loyal Valley Capital, and acquired LP positions in funds managed by the likes of Vietnam’s VI Group and China’s Innovation Works.
Following the Samara transaction, Paul Robine, founder and CEO of TR Capital, told AVCJ that he is seeing more fund restructuring opportunities involving portfolios of several assets. He added that deal sizes are increasing.
The firm’s fund restructuring deals tend to fall in the USD 150m-USD 300m range, while direct investments in companies are USD 30m-USD 100m.
Avenue Alternatives did not respond to an emailed request for comment.
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