Deutsche collects $31m for Asian fund of funds

The global banking giant has held a first close on $31m for its fourth Asian FoF, which has a target of $150m.

Deutsche Bank has so far raised $30.8 million for its fourth Asian fund of funds from 70 LPs.

According to a filing to the US Securities and Exchange Commission, the DB Private Equity Asia Select Fund IV has a target of $150 million. 

It is unclear when the vehicle expects a final close. Deutsche Bank did not respond to requests for comment by press time.

In December 2008, the banking giant moved Peter Pfister to Singapore from Zurich to lead its private equity operations in the region. He was the first team member of the bank’s private equity group to be based in Asia.

Deutsche Bank’s private equity group provides investment opportunities to high net worth individuals and to a few institutional investors, providing them with access to private equity fund managers as well as co-investment opportunities.

The group manages assets of $8 billion as of 31 December 2010, according to its website. It started committing to Asian private equity funds and co-investment opportunities in 2004.

Estimates have put the number of Asia-focused funds of funds between 40 and 66, depending on where the boundaries around the region are drawn and which strategies are included. However, given the relatively small universe of proven GPs in the region, some in the industry have questioned the value-add of fund of funds in Asia and said the market may be too crowded.

In fact, while there is no way to compare the portfolios of each FoF manager, sceptics have said the level of overlap in terms of managers might be as high as 60 or even 80 percent in the mainstream of the Asian fund of funds industry. With the above in mind, some are saying consolidation or a shake-out in the Asian fund of funds industry might be inevitable going forward.