Northstar set for $800m close on Fund IV

The GP is still in final negotiations with a smaller number of LPs, according to a source familiar with the situation. The process was expected to be completed sooner but progress has been hampered by a challenging fundraising environment and uncertainty about Indonesia surrounding last year's presidential and parliamentary elections.

The fund launched in early 2014, with a target of around $800 million and a hard cap of $1 billion, and achieved a first close of $500 million in July of that year. It is likely to be near in size to its predecessor, which closed at $820 million in 2011.

LPs in Fund IV include Maryland State Retirement & Pension System and New York State Common Retirement Fund. The latter committed $10 million through a co-investment pool managed by Asia Alternatives Management. It is also an investor in Asia Alternatives' fund-of-funds.

Northstar was founded by former Goldman Sachs banker Patrick Walujo and Glenn Sugita in 2003. The firm raised $110 million for its first fund and followed up with a second vehicle worth $285 million in 2008. One LP previously told AVCJ that Funds I and II were on course to deliver returns of around 3x and 2x, respectively.

TPG Capital was a significant LP in Northstar's first two funds and a frequent co-investor. Ahead of the final close on Fund III, TPG acquired a minority stake in Northstar, which in turn received a smaller interest in TPG. As part of the arrangement, Ashish Shastry moved from TPG to Northstar as managing partner.

In February, Northstar and TPG made another partial exit from Indonesian lender Bank Tabungan Pensiunan Nasional (BTPN), selling 17.5% to Japan's Sumitomo Corp. for IDR5.93 trillion ($461.8 million). This is part of the deal whereby Sumitomo agreed to buy 40% of BTPN, conditional on winning regulatory approval. Northstar and TPG acquired a 71.61% stake in BTPN in 2008 for approximately $200 million.

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