CVC closes Asia fund on $3.5bn

The fund, which came to market last June, has exceeded its $3bn target.

UK-based CVC Capital Partners has closed its latest Asia fund on $3.5 billion, according to a statement.

The firm came to market in June last year aiming to collect $3 billion. It held a $2 billion first close in December last year. The fund, which had a $3.3 billion hard-cap, closed on $3.5 billion because of a $200 million GP commitment, according to a source close to the matter. 

Fund IV will target businesses benefitting from increased consumer affluence and domestic demand in Greater China, Southeast Asia and Japan and Korea. CVC’s Asia team is led by Roy Kuan, Francis Leung and Sigit Prasetya.

The vehicle saw “strong demand from institutional investors highlighting the continued confidence in CVC’s performance and investment strategy in Asia”, the firm said in a statement. 

“We are gratified by the strong show of support from many longstanding investors and by the quality and reputation of the institutions investing in our Asian private equity platform for the first time,” Steve Koltes, co-chairman of CVC, said.

Among the investors are the Japan Bank for International Coorporation and Sumitomo Mitsui Trust Bank, committed each $50 million to the vehicle, PEI reported in March. 

Approximately a third of investors came from the US and a third came from Asia. Approximately 20 percent of the LPs came from Europe, while the remainder came from the Middle East. CVC has not put any of the capital to work yet, the source said. 

CVC’s fourth Asia fund is smaller than its $4 billion predecessor raised in 2008, which is fully invested. Investors in that vehicle included AlpInvest Partners, California Public Employees' Retirement System (CalPERS), California State Teachers' Retirement System (CalSTRS), New York State Common Retirement Fund, Pennsylvania Public School Employees' Retirement System, Oregon Investment Council (OIC), Oregon Public Employees' Retirement System, Teacher Retirement System of Texas and West Midlands Pension Fund, according to Private Equity International’s Research and Analytics division.

To date, CVC has raised over $10 billion for the region and has completed over 46 investments.

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