CVC Asia returns $2bn in 2014

The firm’s Asia funds made three exits worth $1bn in December alone

The Asian arm of global private equity firm CVC Capital Partners exited three portfolio companies across Japan, Taiwan and the Philippines in December 2014, returning a combined $1 billion to investors, according to the firm.

The exits, which all completed in mid- to late-December, brought the Asia firm’s total distributions in 2014 to $2 billion. The firm did not disclose the return information on these investments.

Its three recent exits included the JPY53 billion ($445 million; €372 million) IPO of TechnoPro Holdings in Tokyo, which represented a partial exit for the firm, the sale of Philippine bank Rizal Commercial Banking Corporation to Cathay Financial Insurance, and the pre-IPO share sale of Taiwan-listed Nien Made, having taken the window shutters manufacturer private in 2007.

The firm helped increase TechnoPro's operating profit to JPY 7 billion from JPY 4 billion over its holding period, as well as increasing Nien Made's EBITDA by 60 percent over four years. 

In addition, the other full and partial realisations contributing to the $2 billion distributed to investors from CVC’s Asia funds last year included P.T. LinkNet, SPi Global, Mantra, Matahari and Jintian Pharmaceuticals.

Jintian and LinkNet were both sold down in October, within days of each other.

The firm sold 185.5 million shares in Jintian, a leading pharmaceutical retailer and distributor in Northeast China listed on the Hong Kong Stock Exchange, for HK$3.29 (£0.26; $0.42) per share. CVC had invested $84.1 million in October 2011 to acquire a 24.24 percent stake, and retains a 6.9 percent stake.

At the same time, media reported that CVC also agreed to sell part of its stake in Link Net, Indonesia’s second largest fixed broadband and cable television operator, for between 6,200 rupiah and 6,700 rupiah (£0.32-£0.34; $0.51-$0.55) per share.

CVC had a busy year in Asia Pacific in 2014, closing its fourth Asia fund on $3.5 billion, surpassing its $3.3 billion hard cap with the help of a $200 million GP commitment, PEI reported earlier.

The firm has since been actively making investments. CVC Asia Pacific Fund IV focuses on businesses benefitting from increased consumer affluence and domestic demand in Greater China, Southeast Asia and Japan and Korea. Its first investment was in Asia-wide serviced officer operator The Executive Centre, a secondary buyout from Headland Capital Partners.