H&Q Asia Pacific adds $500m in two funds

As the firm seeks to build its reputation in the Asian buyout arena, private equity firm H&Q Asia Pacific has raised two new vehicles with a combined $500m in capital to target larger, later stage investments in the North Asian market.

H&Q Asia Pacific, a private equity and venture capital firm, has raised $500 million (€407 million) for two new vehicles that will invest in the North Asia region.

The funds, Asia Pacific Growth Fund V LP (APGF V) and H&Q-NPS Fund I, will both acquire control or influential stakes in later stage and larger investments. While APGF V will invest across Japan, South Korea and China, the H&Q-NPS Fund I will focus exclusively on the Korean market. At the time of reporting, H&QAP representatives were unavailable to confirm the amounts committed to each fund.

“With the proliferation of Asian funds in the market, we are appreciative of the support and confidence that our limited partners have vested in H&Q Asia Pacific, and we will work hard to deliver returns,” said Dr. Ta-lin Hsu, founder and H&QAP chairman, in a statement. “We are very excited about the investment opportunities across the Asian landscape and believe that we are well-positioned to take advantage of these opportunities.”

Although H&QAP now invests in mid-cap companies, the firm’s background leans more toward the venture capital side, and H&QAP has recently taken steps toward building its image as a later stage investor. Last September, the firm formed a new alliance with Boston-based buyout firm Thomas H. Lee Partners.

At the time the partnership was announced, Dr. Hsu told PEO in an interview that, given the already considerable size of THL Partners’ portfolio, he does not expect the two firms to jointly raise funds. Instead, the two firms would focus on linking H&QAP’s network of business process outsourcing providers with THL Partners’ existing portfolio companies in order to streamline and enhance their performance.

Founded in 1985, H&Q Asia Pacific now manages $2.1 billion in assets through 19 funds. The firm focuses primarily on the technology, manufacturing, financial services and media industries. Since 2001, the firm has operated in complete independence from former parent company Hambrecht & Quist and JP Morgan, which acquired H&Q in 2000.