CVC closes fifth Asia fund on $4.5bn hard-cap

The firm has yet to make any investments from fund V, which exceeded its fundraising target by $500m.

CVC Capital Partners has closed its fifth Asia vehicle on its hard-cap.

The buyout giant gathered $4.5 billion after more than a year on the fundraising trail, raising $500 million more than its original target, a source with knowledge of the fundraising told Private Equity International.

CVC Capital Partners Asia Pacific V is $1 billion larger than its 2014-vintage $3.5 billion predecessor. That fund is fully deployed and has made several exits, including investments in Indonesian sporting goods retailer Map Active, Japanese care provider Hitowa and broadband provider Arteria Networks.

The firm raised a significant amount of capital from new investors for Fund V and also saw an increase in the number of investors based in Asia, the source added.

Canada Pension Plan Investment Board, New York State Common Retirement Fund and Oregon Public Employees’ Retirement System made commitments of $275 million, $250 million and $150 million respectively to Fund V, according to PEI data.

Capital raised for the vehicle will follow the same strategy as the firm’s previous Asia buyout funds – taking control investment in core consumer and services sectors across the region. The firm has not yet made an investment from Fund V, it is understood. With the current health crisis, auction processes are delayed or put on hold by sellers. However, half a dozen bilateral situations are still ongoing, the source said.

Asia-Pacific deal value slumped 16 percent in 2019 to $150 billion after historic highs in 2017 and 2018, due to the trade war and macro economic softness mainly in Greater China, according to Bain & Company’s Asia-Pacific Private Equity Report 2020.

CVC is also in the market with its eighth flagship fund, which has a target of €17.5 billion. Fund VIII is on track for a June final closing, according to investor sources. Fund terms for the vehicle include a below-market hurdle of 6 percent and a relatively low management fee of 1.5 percent during the investment period, according to documents from the New Jersey Division of Investment.