CVC Asia fund raises $100m from Japan

Both Sumitomo Mitsui Trust and Japan Bank for International Cooperation committed to the $3.5bn fund.

Two Japanese institutions, Japan Bank for International Coorporation and Sumitomo Mitsui Trust Bank, have added to the $3 billion already collected for CVC Capital Partners latest Asia Pacific offering.

The two banks have each committed $50 million to CVC’s fourth Asia vehicle, which is currently making its way toward its $3.5 billion hard cap just 10 months after launch, according to a joint statement.

CVC is not commenting on the matter, a spokeswoman for the firm said.

The commitments from JBIC and Sumitomo are intended to strengthen the support of overseas M&A for Japanese companies, according to the statement.

Japanese companies are increasingly looking abroad for M&A opportunities, particularly in Southeast Asia.

Sumitomo was the buyer in TPG and Northstar Group’s $1.52 billion exit from Indonesia’s Bank Tabungan Pensiunan Nasional last year. The firms sold a total of 40 percent across two deals in May, PEI reported earlier, adding that the exit represented a return multiple of 7x for the private equity duo.

CVC has had notable success in Indonesia, as well, with its investment in department store Matahari.

In March, CVC, along with other investors, sold a 6.5 percent stake in Matahari Department Stores, the block sale worth around $214 million, media reported earlier.

The deal was the firm’s second partial exit from Matahari after its $1.3 billion exit in March 2013. The firm sold 40 percent of Matahari on the Indonesia stock exchange, having priced the 1.17 billion shares divested at Indonesian Rp 10,850 (€0.86; $1.12) per share. A source told PEI at the time the firm expects a 7x-8x return on its investment in the business.

CVC joins a number of firms that have successfully raised capital for the region over the past 12 months such as Kohlberg Kravis Roberts, with a record $6 billion regional fund, Affinity Equity Partners ($3.8 billion) and MBK Partners ($2.7 billion).

CVC Capital Partners is a London-headquartered private equity firm with about $50 billion in assets under management, according to PEI’s Research & Analytics division.