Affinity Equity Partners held a first close on $1.4 billion for its fourth fund last week, according to a source with direct knowledge of the matter.
The fund is targeting $3.5 billion, and will follow the same strategy as its predecessors, Private Equity International reported previously. Both funds focus on control buyout deals in Asian countries including Korea, Australia, Greater China and Southeast Asia. The fund will not invest in India.
Affinity and placement agent MVision declined to comment on fundraising.
It is understood that many of the fund’s commitments are re-ups, one of the largest being the Washington State Investment Board – which has committed $300 million to Fund IV, having previously invested $100 million in Affinity’s third fund.
Affinity began conversations with its LPs about fundraising in May, PEI’s source said, though the firm only officially launched the fund in September. It took the firm longer to raise 40 percent of its target than it has previously, as the poor fundraising environment in Asia has impacted even established funds, the source added. In absolute terms, this first close is only half of the total Affinity raised for its third fund ($2.8 billion).
Affinity Equity Partners spun out of UBS Capital Asia Pacific in 2004 and is led by founder KY Tang. The firm focuses on buyouts across Asia-Pacific and currently has $4 billion in assets under management, according to PEI’s Research & Analytics division.