Asian buyout firm Affinity Equity Partners, which is based out of Hong Kong, has announced a final closing of its Fund II at a capped level of $700 million (€550 million). This is well in excess of the fund’s original target amount of $500 million.
Credit Suisse First Boston acted as placement agent to the Affinity team on their first fundraising since gaining independence from UBS in March 2004.
Investors in the fund included Adams Street Partners, Allianz Private Equity Partners, AlpInvest Partners, Government of Singapore Investment Corporation, Temasek Group and Pantheon.
Nearly half of the fund commitments (49 percent) came from investors in Europe, with 27 percent deriving from North America and 24 percent from Asia. Pension funds contributed 30 percent, government-linked agencies 20 percent and insurance companies 17 percent. The balance came from funds of funds, banks, family offices and high net worth individuals.
In a statement, Affinity said the fund would target “control-oriented buyout investments in market leading, well managed Asia Pacific businesses”. It added that the fund would invest primarily in the “more developed” Asia Pacific economies. In addition to its Hong Kong base, Affinity has offices in Seoul, Singapore and Sydney.
“We are extremely pleased with the outcome of the fundraising and the high quality of investors who have decided to partner with us,” said Kok-Yew Tang, chairman and managing partner of Affinity. “Investors were attracted by our focused and disciplined investment strategy, the quality of our team and our investment track record of generating cash realisations.”
Affinity was formed from the spin-off of the Asia Pacific management team at UBS Capital, the private equity arm of UBS. The co-founders Kok-Yew Tang and David Lai are part of a team of five partners that also includes Lak-Chuan Ng, Weng-Sun Mok and Young-Taeg Park.
Since December 1998, the Affinity team has invested in ten companies with an aggregate transaction value of more than $1.4 billion. They include Haitai Confectionery, the South Korean confectionery business; NS Electronics, the Thai electronics group; and SDL Leasing, the Singapore consumer finance specialist.
Affinity has taken advantage of a strong tailwind for Asian private equity fundraisings. According to the latest figures from the Asian Venture Capital Journal, firms in the region raised $5.03 billion in fresh capital during the first half of 2004, compared with $3.32 billion in the whole of last year.