CVC Asia raises $3bn

The firm is on-track to hit its $3.5bn target for its fourth Asia-dedicated vehicle.

CVC Capital Partners has raised $3 billion for its latest Asia offering after nine months in the market, a source with direct knowledge of the matter confirmed to Private Equity International. 

The firm had raised $2 billion as of December 2013.

“CVC is delighted with how quickly they've got to this stage of the fundraising,” PEI’s source said.

The fund, CVC’s fourth Asia-focused vehicle, is targeting $3.5 billion to invest in Greater China, Southeast Asia, Japan and Korea and will focus on consumer-related investments.

CVC also recently bolstered its capabilities in the sector, in January hiring Jeremy Hobbins as a senior advisor to the pan-Asia team. He is based in Hong Kong and has 30 years of experience in consumer retail, sourcing and distribution, having held senior leadership positions at several international retail and distribution companies.

CVC will not invest in India or Australia, having made the decision to no longer invest in the latter after its failed investment in Nine Entertainment, which fell into the hands of senior lenders Oaktree Capital Management and Apollo Global Management.

But recent investments in both Greater China and Southeast Asia have fared better, particularly the firm's Indonesia deals, and that has likely appealed to investors in the new fund.

For example, the firm sold 40 percent of Indonesia-based Matahari Department Stores in March, gaining a 7x-8x return on the investment, a source told PEI earlier.  The deal was worth $1.3 billion, having priced the 1.17 billion shares divested at Indonesian Rp 10,850 (€0.86; $1.12) per share.

While fundraising figures for Asia have been down, a number of firms have successfully raised capital for the region over the past 12 months, including Kohlberg Kravis Roberts with a record $6 billion regional fund, Affinity Equity Partners ($3.8 billion) and MBK Partners ($2.7 billion). CDH Investment Partners also closed its latest China fund this month on $2.55 billion oversubscribed, PEI reported earlier.

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.