RRJ Capital raises $3.5b for Fund II – report
RRJ Capital has reportedly raised $3.5 billion for its second fund. The Hong Kong-based GP, which was set up by Richard Ong, formerly of Goldman Sachs and Hopu Investment Management, originally targeted up to $5 billion for the vehicle.
According to Reuters, RRJ will finalize the fund in early March. The LPs are understood to include China Investment Corporation (CIC) and Temasek Holdings - Ong's brother, Charles, was seconded to the firm by Temasek Holdings in 2011 and they run operations together. Texas County & District Retirement System (TCDRS) disclosed in January that it had committed $50 million to the fund.
RRJ Capital II is expected to follow a similar remit to that of its predecessor, which reached a final close of $2.3 billion in 2011. While Fund I invests in Asia, an interest in natural resources has taken it into North America, searching for assets that are strategically aligned with Asia's energy needs.
Commitments have been made to the likes of oil exploratory and extraction firm Frac Tech Services, natural gas provider Clean Energy Fuels Corp and liquefied natural gas specialist Cheniere Energy. Temasek is a frequent co-investor with RRJ.
Given its global perspective, comparisons between RRJ and large Asia-focused funds aren't necessarily helpful, although they may target similar LPs. Out of funds raised by Asia-based GPs, only Pacific Equity Partners' fourth Australian fund - at $4.2 billion, although this included a $1.4 billion non-discretionary co-investment pool - is larger than RRJ Capital II.
The fundraising environment in Asia is tightening, with $18.98 billion raised in the second half of 2012, according to AVCJ Research. Only $46.8 billion was raised for the year in full, down 35.8% on 2011 and the lowest annual total since 2009.
Several Asia-focused GPs are targeting fundraises of around the same size as RRJ. KKR has still to announce a final close on its second pan-regional vehicle, said to be around $6 billion, while Affinity Equity Partners and The Carlyle Group are seeking $3.5 billion and TPG Capital is looking for up to $4 billion.
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