
TR exits last China asset acquired through Cassia restructuring
TR Capital has sold China-focused luxury streetwear brand Evisu United – one of two assets it acquired through fund restructuring for Cassia Investments – through a sale to an unnamed financial sponsor. The size of the deal was not disclosed.
The specialist secondaries investor made the investment in 2018 through its third fund, which closed on USD 175m in 2017. The other asset was Guilin Seamild Foods, a producer of instant oatmeal and oat drinks. It was fully exited in September 2020, de-risking the entire Cassia restructuring. TR put approximately USD 50m into the deal.
Evisu and Seamild were in Cassia’s USD 100m second fund. The Hong Kong-based private equity firm pursued lower middle-market opportunities in China and Southeast Asia – Hong Kong-headquartered fashion retailer Shanghai Tang was a portfolio company until its sale to Lunar in 2018 – but decided against raising a third fund.
Cassia gained exposure to Evisu in 2016 by supporting the Japanese clothing maker’s USD 40m buyback of its China retail and franchising rights. The rights had been held by a joint venture partner, which was in turn backed by IDG Capital. Cassia took a minority interest in Evisu.
Founded in 1991, the company is best known for selling premium jeans and denim-related products under the Evisu Evergreen brand. It is inspired by vintage American denim, and it is widely recognized for its iconic branding, unique designs, and premium quality, according to a statement. Evisu also diversified into leisure and sportswear products.
“Our successful exit from Evisu, having de-risked the entire investment in such a short period of time, demonstrates the value of our strategy and the strength of the secondaries market in Asia,” said Paul Robine, founder and CEO of TR.
The secondaries investor has USD 1.2bn under management across four funds. In addition to fund restructurings, whereby TR works with managers to provide liquidity to LPs in existing funds, it makes direction acquisitions of equity positions in companies from financial sponsors.
The firm recently reached a first close of USD 350m on its fifth fund, which has an overall target of USD 600m. Nearly 90% of existing LPs re-upped in the first close. This came on the heels of TR leading a USD 150m continuation fund deal with India-based Samara Capital.
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