CVC Capital Partners has acquired a minority stake in PT Softex Indonesia, a leading consumer goods company in Indonesia.
The investment was made out of CVC Asia Pacific Fund IV, a 2013-vintage vehicle that raised $3.5 billion. Investors in the fund include California State Teachers' Retirement System, the Canada Pension Plan Investment Board, New York State Teachers' Retirement System and Japan Bank for International Cooperation.
It marks CVC’s fourth in Indonesia, following its successful initial public offering of Matahari Department Store and Link Net on the Indonesian stock exchange. CVC acquired a 98 percent stake in Matahari for about $892 million in 2010. A year later, the firm completed its $275 million investment in Link Net. In March 2015, it agreed to invest about $120 million in lifestyle retailer Mitra Adiperkasa to pay down the company's debt.
CVC plans to accelerate growth at PT Softex Indonesia, which holds the leading market share in baby, adult and feminine care product categories with brands Sweety, Softex and Confidence, according to a statement.
Indonesia is the fourth most populous country in the world with a population of 250 million, of which 45 percent are under the age of 25. This group has ramped up spending in key segments such as home goods, vehicles, lifestyle products and financial services, making the country’s consumer goods sector an attractive investment opportunity, said the statement.
CVC Capital has over $80 billion in secured commitments across US, European and Asian private equity, credit and growth funds.
The firm plans to open a new office in São Paulo, Brazil in early 2016 and will hire former chief executive of Itaú BBA investment bank Jean-Marc Etlin as head of Latin America, as reported by Private Equity International.
In December, CVC Capital announced two investments from its $4.5 billion Strategic Opportunities Fund, as reported. It co-invested with Singaporean sovereign wealth fund GIC in UK road-side assistance business RAC. It also acquired a 40 percent stake in UK motorway service provider Moto from UK-based Universities Superannuation Scheme.