Asia-Pacific Buyout Fundraising, 2007 - February 2012

by Yong Xiang Pua

  • 10 Feb 2012
  • PE

At present, there are 63 Asia-Pacific fund managers - including Australasian fund managers - that have successfully closed buyout vehicles since 2007. Of these GPs, 16 are based in Australia, 12 in Japan and nine in China. Buyout specialists based in Asia-Pacific collectively raised a total of $47.8bn via 77 vehicles in the past five years.

Chinese GPs accounted for nearly a third of the aggregate capital raised ($15.1bn), with 12 funds closed during the period. China-based Hony Capital, having raised $6.1bn via four vehicles, is the top buyout fund manager in Asia-Pacific in terms of aggregate capital raised since 2007. Its most recent China-focused vehicle, Hony Capital Fund V, received nearly $2.4bn from private equity investors and is one of the largest vehicles raised in recent years.

Australian GPs garnered $11.8bn via 18 funds. One such fund manager is Archer Capital, which raised $2.7bn in aggregate capital via two vehicles. Its fifth vehicle in the large-cap buyout series, Archer Capital Fund V, garnered slightly more than $1.5bn in 2011 whereas its predecessor fund Archer Capital Fund IV raised $1.2bn in 2007. These funds focus on Australia and New Zealand companies exclusively, but invest across multiple industries, excluding real estate and commercially unproven technology businesses. Archer Capital is currently on the road again with its second small-cap buyout vehicle, Archer Capital Growth Fund 2, with a targeted size of AUD 250mn.

GPs headquartered in Hong Kong have finalized 10 vehicles with an aggregate capital of $6.8bn in the past five years. One example is CITIC Capital, which has successfully closed four buyout funds in the past five years, raising $1.6bn in aggregate capital. While the GP targets Japan and China via its CITIC Capital Japan Partners and CITIC Capital China Partners series respectively, it invests on a global scale via its CITIC Equity Partners series. With a final size of $925mn, CITIC Capital China Partners II exceeded its initial $750mn target and became the largest buyout fund raised by the decade-old firm. CITIC Capital is currently raising two vehicles, CNY-denominated CITIC Capital (Tianjin) Equity Investment Partnership and CITIC Capital International Partners III. The latter fund, which maintains a diverse investment mandate, held its initial close on $455mn six months after its January 2011 launch.

The Indonesian private equity market is attracting growing levels of attention from upcoming GPs, following the success of home-grown fund manager Northstar Pacific. The Indonesian fund manager has a core focus on the domestic market and invests in sectors such as natural resources, financial services and retail-related sectors.  Having finalized its first vehicle, Northstar Equity Partners, at $110mn in 2007, Northstar Pacific went on to complete fundraising for two more vehicles in 2010 and 2011. Northstar Equity Partners III was well-received by LPs and successfully raised $820mn, surpassing its target of $750mn.

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