Funds

MBK closes $4.1bn fund in 2 months

The North Asian buyout firm, which started raising capital in September, has held one of the fastest fundraises in Asia this year.

By
Carmela Mendoza
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The North Asian buyout firm, which started raising capital in September, has held one of the fastest fundraises in Asia this year.

North Asia-focused private equity firm MBK Partners has held a $4.1 billion final close this week on its fourth buyout fund after only two months in market, according to a source with knowledge of the fundraising.

MBK Partners IV, officially launched in September this year, smashed its $3.5 billion initial target garnering commitments from around 50 global LPs, the source added.

Investors who have re-upped their commitments include the Canada Pension Plan Investment Board and Singapore sovereign wealth fund GIC Private Limited. 

The New Jersey Division of Investment also committed $100 million and the Teachers’ Retirement System of the State of Illinois committed $150 million, according to PEI data. 

The fund is considerably larger than its predecessor fund, MBK Partners III, which the firm raised $2.7 billion for in 2013. It is also now the third largest Asian private equity fund, surpassing Baring Private Equity Asia’s sixth fund which closed on $3.9 billion in 2015. Buyout giant KKR continues to top the list for its $6 billion Asian Fund II raised in 2013, followed by RRJ Capital’s second fund which raised $4.5 billion in 2015.

MBK focuses on management-led buyouts in Greater China, Japan, and Korea. The firm recently offered to buy Accordia Golf in Japan for $761 million. In October, MBK teamed up with TPG to acquire Hong Kong telecom company Wharf T&T for HK$9.5 billion ($1.22 billion; €1.09 billion).

MBK declined to comment on fundraising.