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Far East-Focused Private Equity Funds in Market – August 2012

by Aveline Tan

  • 31 Aug 2012
  • PE

Seventy-eight private equity funds (excluding funds of funds and secondaries vehicles) on the road solely invest in the Far East or include the region as part of their geographic investment focus. These Far East-focused funds are seeking an aggregate capital of $24.2bn and, to date, 40 funds have held at least one interim close collecting a total of $5.6bn in commitments.

In terms of aggregate target size, buyout funds account for the majority of capital (44%) being sought by fund managers with vehicles that have Far East within their investment scope. Growth and venture vehicles follow, accounting for 35% and 9% of the aggregate fundraising target respectively. Five percent of the aggregate capital target is sought by fund managers seeking to raise mezzanine vehicles and a further four percent is being targeted by balanced vehicles. Other Far East-focused funds in market include distressed debt, co-investment, timber, and direct secondaries funds.

The largest fund on the road that includes Far East as part of its investment strategy is KKR Asia Fund II. The buyout vehicle is seeking to raise $6bn and has raised $3bn during its first close this in June of this year. KKR Asia Fund II invests in management buyouts and makes growth equity investments in Far East and other Asian countries such as China and India.

Country-specific vehicles account for only 26% of the Far East-focused private equity vehicles currently on the road.  Forty-five percent of private equity funds that invest in Far East have a target allocation to Greater China, while less than a quarter of these funds (21%) seek to allocate to India.

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