Unitas cancels fundraising plans, China team joins Permira

Unitas closed its third fund at $1.2 billion in 2008 and retains holdings in five companies that have a presence in China. Tsao - who has become chairman and head of China at Permira - and his six-member Shanghai-based team will continue to manage the Unitas portfolio. They will simultaneously develop Permira's presence in China.

"The transition of the Shanghai team is a win-win for all parties. The team continues to provide active engagement and support to the Unitas portfolio; and Permira gains a proven and successful Shanghai team that has an extensive track record in making control investments in China," John Lewis, CEO of Unitas, and Alex Emery, head of Asia at Permira, said in a joint statement.

Following the spin-out of Unitas' Korea-based team last year, the firm initially planned to raise a fourth fund that would focus exclusively on cross-border and China opportunities. All but one of the Fund III investments were China control deals or non-Asian companies that were bought with a view to expanding their presence in the region.

Unitas retains condiments producer Jiahao Foodstuff, restaurant chains Babela's Group and Jiayo Noodle House, and surveillance technology firm ZNV. It also owns Hyva Holdings, a hydraulic cylinders manufacturer of European origin that relies on Asia, and particularly China, for the bulk of its sales.

The private equity firm has returned $2.1 billion to LPs since January 2013, of which $1.4 billion constituted capital gains, according to a source familiar with the situation. Fund III has generated a 48% return on its realized investments. These include specialist vacuum products developer Edwards Group, Australasian car parts supplier Exego, and Korean outdoor apparel manufacturer NEPA.

Unitas was formed in 1999 as J.P. Morgan Partners Asia and became known as CCMP Capital Asia after spinning out from its parent in 2005. The Asia business subsequently formally separated from CCMP's US and European operations and was renamed Unitas Capital. Its first independent fund - Asia Opportunity Fund II - closed at $1.58 billion in 2005.

Performance data disclosed by Oregon Public Employees' Retirement Fund indicate that, as of September 2015, Fund II had delivered a 1.68x multiple and a 7.3% IRR, with Fund III on a 0.8x multiple and a -8.5% IRR.

Permira reached a final close on its fifth global buyout fund at the hard cap of EUR5.3 billion ($7.2 billion) in mid-2014. The firm has 120 investment professionals spread across 15 offices and focuses on consumer; technology, media and telecom; industrials financial services; and healthcare. Its minimum check size is EUR75-100 million ($82-109 million).

Permira has been active in Japan for a number of years. In late 2014, the firm exited its first investment in the country - Arysta LifeSciences, which it bought from Olympus Capital in 2007 - to US chemicals firm Platform Specialty Products (PSP) for about $3.51 billion.

Last year, the GP bolstered its Japan presence with the appointment of Ryotaro Fujii as managing director and head of Japan. Yoichiro Furuse, a senior advisor to the firm, became Japan chairman.

 

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