Macquarie raises $380m for Asian FoF

Macquarie Group's Sydney-headquartered funds management unit has raised $300m for an Asia-focused fund of funds and an additional $80m for a co-investment vehicle.

The Macquarie Funds Group, the managed funds and structured investments division of Macquarie Group, has raised $380 million for two investment vehicles focused on Asian private equity.

It raised $300 million for Macquarie Asia Pacific Private Equity, a fund of funds which will make primary and secondary commitments to private equity funds across diverse strategies and geographies in the region.

Unlike most other Asia-focused fund of fund managers, Macquarie Funds Group prefers control-oriented managers over growth capital focused funds, said Hugh Dyus, a Hong Kong-based associate director at Macquarie Funds Group.

He added that while a lot of people associate control deals with leverage, there are fund managers in the region that make “growth buyouts” using little or no leverage. These firms invest in the small to medium end of the market.

The fund will be over weighed towards the control space, but will invest in other different strategies as well, Dyus said.

The firm has also raised $80 million for the Macquarie Asia Pacific Co-Investment Fund, which was established in April 2008. This fund will co-invest alongside private equity managers in selected Asian transactions.

The parent company has invested a total of $20 million into the two funds, the firm said in a statement.

Thus far, the group has committed capital to 10 private equity fund managers in the Asia Pacific region and it has made four co-investments.

The group also plans to raise $400 million for its second cleantech fund of funds. The official target for that fund is $600 million, but a source said earlier in the month that the team has revised its expectations owing to the currently difficult fundraising environment.

The Macquarie Funds Group manages private equity funds of about $3.5 billion as of 28 February 2009. Its private equity fund of funds team has 25 professionals across offices in Hong Kong, Sydney, Melbourne, Carlsbad and London.