CVC passes $4.4b on latest Asia fundraise
CVC Capital Partners has hit the USD 4.45bn mark on its sixth pan-Asian fund, following a first close of USD 3.5bn at the end of last year.
The fundraising update was revealed in a US regulatory filing that noted commitments had been received from 70 investors. These filings do not necessarily reflect the full extent of a fundraise. LPs that have disclosed their participation include Canada Pension Plan Investment Board (CPPIB), Oregon Investment Council, and Partners Group.
CVC launched the fund in the first quarter of 2022, targeting USD 6bn. The first close coincided with the hard cap being set at USD 6.5bn, according to Mergermarket, AVCJ’s sister title. The private equity firm closed Fund V at the hard cap of USD 4.5bn in April 2020.
Active in Asia since 1999, CVC has EUR 12bn (USD 13.1bn) in assets under management in the region and 29 active investments. It typically targets control, co-control, and structured minority investments with enterprise values of USD 250m to USD 1.5bn.
Recent additions to the Fund V portfolio include Samator Indo Gas, Indonesia’s largest industrial and medical gas producer, which received USD 155m from CVC in March for a significant minority stake. This is an example of the GP's partnership approach, where it executes minority-joint control deals with founders and family groups. The strategy has been particularly prevalent in Southeast Asia.
According to Oregon Public Employees Retirement System, Fund V was marked at 1.2x as of December 2022. The pension system is also in CVC’s second and third Asian funds, from 2005 and 2008, respectively. Fund II was on 0.79x with an IRR of -5%; Fund III was on 1.58x with an IRR of 12.9%.
Raising capital is proving a challenge for many GPs in Asia. Industry participants have noted that many Western investors are either overallocated to the asset class and unable to make new commitments or in risk-off mode and therefore reluctant to allocate to Asia.
Managers in the region have raised USD 24.3bn so far this year, excluding renminbi-denominated funds. The 12-month totals for 2021 and 2022 were USD 95.9bn and USD 106.4bn, respectively. Pan-regional funds accounted for approximately 40% of the total in 2021 and 2022. For 2023 to date, it is 22%, according to AVCJ Research.
North Asia-focused MBK Partners recently began marketing its sixth fund with a target of USD 7bn. Other pan-regional players currently in the market include CVC Capital Partners, The Carlyle Group, TPG Capital, and PAG. All apart from Carlyle have disclosed first closes. PAG set out with a target of USD 9bn but had raised only USD 2.2bn as of March. The firm subsequently cut back its target to USD 6bn.
More on Fundraising
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.