From 2008 to present, ASEAN-based fund managers have successfully raised an aggregate capital of $9.3bn from 54 private equity funds, excluding real estate and infrastructure. These funds include a variety of strategies, including buyout, fund of funds, growth, mezzanine, natural resources, and venture capital. Of these, growth and venture capital stand out as the most significant strategies used by GPs in the region. Forty-four percent of the funds were targeted at venture capital stage investments, while another 30% of these funds were growth vehicles. A further 11% of the total number of funds consisted of buyout vehicles.
While buyout vehicles did not make up the largest proportion of fund types, these vehicles attracted the largest amount of committed capital. A total of $2.5bn was raised to be invested in buyout opportunities, contributing 27% of the total amount of capital raised by ASEAN-based private equity GPs from 2008 to present. The largest buyout fund raised since 2008 by an ASEAN manager is Navis Asia Fund VI, a vehicle managed by Malaysia-headquartered Navis Capital Partners. With a fund size of $1.2bn, Navis Asia Fund VI invests in Australia and Asia, with a particular focus on South and Southeast Asia.
ASEAN-based GPs have an aggregate of $1.3bn (14%) to be invested in venture capital opportunities from 2008 to July 2012. Most of the investments are targeted at Asia, including the ASEAN region, with a handful of the funds investing in other parts of the world such as the US and South America. The largest venture fund raised since 2008 is Quvat Capital Partners II, a $350mn vehicle managed by Singapore-headquartered Quvat Management. The venture fund invests primarily in Indonesia, Malaysia and Singapore.
The 16 growth funds raised by ASEAN-based GPs that have closed since 2008 raised a total of $2.3bn in commitments. This makes up 24% of the total capital raised by ASEAN managers since 2008. One of the most prominent growth funds closed in this period was The Asian Entrepreneur Legacy One (TAEL One), a $551mn vehicle managed by Singapore-based TAEL Partners. The growth fund includes a blend of special situation strategies and focuses mainly on Indonesia, Malaysia, and Thailand. It may also allocate a small amount of capital to Singapore-based enterprises.
Interestingly, while ASEAN-based GPs are not extremely keen on fund of funds vehicles, such funds have managed to gather a significant amount of $2.2bn (24%) since 2008. The biggest fund of funds raised by an ASEAN-based GP in this time frame was Axiom Asia III. The vehicle, managed by Singapore-based Axiom Asia Private Capital, closed with $1.2bn in total commitments. It will invest solely in the Asia-Pacific region, in particular, Greater China, India, Japan, Southeast Asia and Australia. The fund of funds is mainly targeting buyout and venture funds, but may also make secondary and co-investments selectively.