Northstar Group seeks to raise $1b Southeast Asia fund

According to Reuters, Northstar is still finalizing details for the new fund.

Sources close to the firm previously told AVCJ that Northstar Equity Partners IV would be roughly the same size as its predessor, which closed at $820 million in 2011. Separately, LP sources indicate that Northstar has indicated that it will not exceed $1 billion.

Northstar was founded by former Goldman Sachs banker Patrick Walujo and Glenn Sugita in Indonesia in 2003.

After the close of Fund III, it was announced that TPG - an LP in Northstar's early funds and a frequent co-investor - would enter into a cross-shareholding arrangement with the firm. TPG is now believed to own 10-20% of Northstar, while Northstar owns less than 0.5% of TPG.

Speaking to AVCJ last year, Walujo said the firm's investment strategy hadn't change much between Funds II and III despite the latter being nearly three times the size of the former. Rather, the co-investment share would be scaled back.

"We have invested nearly $2 billion together with our co-investors. About $700 million of that was from the funds we manage, meaning we have provided more than $1.3 billion of co-investment opportunities to our partners," he said. "Our strategy has evolved as our assets under management have grown and, going forward, Northstar-managed funds will represent a bigger share of our deals."

Earlier this year, the firm made a partial exit from its investment in Bank Tabungan Pensiunan Nasional (BTPN) alongside TPG when Japan's Sumitomo Mitsui Banking Corporation (SMBC) agreed to buy up to 40% of the lender - pending regulatory approval - at a price-to-book valuation of $1.56 billion.

On the investment front, Northstar has been less active in Indonesia recently, although the country is still expected to account for the bulk of Fund IV.

There has been nothing since the acquisition of a 49% stake in domestic Trimegah Securities last December. However, this year Northstar has already made three investments elsewhere in Indonesia, including last month's $103 million management-led buyout of Singapore's biggest property broker, ERA Singapore.

 

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• Topics
• Southeast Asia
• Fundraising
• Fundraising
• Northstar Group
• TPG Capital
• Indonesia
• Singapore
• Southeast Asia