The sixth Asia buyout fund exceeded its target by 13%
Buyout funds focused on the region are seeking $81.9bn
Asia deal value increased to $48.4bn in 2023
February 21, 2024 (Preqin News) – CVC Capital Partners has raised $6.8bn for its sixth Asia fund, CVC Capital Partner Asia VI, making it the largest buyout fund targeting the region to close since 2022.
The final close was 13% higher than the $6bn target. The news will be a boost for a region that had seen declining fundraising for buyouts, with a total of $19.1bn raised across 36 funds last year, down from $33.9bn by 100 funds in 2022 and $35.7bn across 137 funds in 2021, according to Preqin data.
CVC’s fund is one of the largest ever raised for Asia, with only KKR, EQT, Hillhouse Investment, and Bain Capital achieving bigger closes. CVC has now raised over $21bn to invest in Asia across all its funds.
‘We have invested significantly in CVC Asia over recent years and are delighted with its excellent progress. It is one of the growth engines for our private equity platform. We look forward to the continued expansion and success of this strategy,’ Robert Lucas, Managing Partner at CVC, said when announcing the fund close.
Preqin is currently tracking 89 Asia-focused buyout funds in the market, seeking to raise $81.9bn. Several large Asia-focused buyout funds are expected to come to market this year, with Preqin’s Forward Calendar expecting KKR to launch the next in its KKR Asian Funds series in Q1 2024 (KKR Asian Fund IV launched in 2020 and hit $14.2bn at its final close in March 2021). Blackstone is also set to launch its third Asia-focused buyout fund in the second quarter (Blackstone Capital Partners Asia II is a 2021 vintage fund that closed on $6.4bn in January 2022).
Buyouts have been gaining traction in APAC, with the number and value of deals climbing over the past five years. Last year, Preqin recorded 273 buyouts of Asia-based companies with a combined value of $48.4bn. Deal volume was down from 312 transactions in 2022, but value rose from $46.3bn. The robust performance contrasts with other regions, which all saw a fall in transactions activity.
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