Navis launches $1.3bn Southeast Asia fund

The Malaysia-based firm has launched its seventh fund and will maintain a core Southeast Asia focus but exclude India.

Navis Capital Partners has launched its seventh private equity fund targeting $1.3 billion, according to sources with direct knowledge of the matter.

Navis, which has been investing in Southeast Asia since 1998, is one of Asia’s oldest private equity firms. The firm’s long track record and current LP interest in Southeast Asia exposure are expected to bring the fund to first close by first quarter 2014, according to one industry source. 

The fund will have a hardcap of $1.5 billion, he added.

Across the 20 companies Navis has exited since inception, the average realised IRR was 33 percent, but Indian investments delivered minus 6 percent.

Navis internal study done last year, previously reported in PEI

The firm’s placement agent is Campbell Lutyens, which it has used to raise the last three funds.

Both Navis and Campbell Lutyens declined to comment on fundraising.

Navis’ previous vehicle, which has a 2009 vintage, closed on $1.2 billion, according to PEI's Research & Analytics division.

Navis has maintained a core Southeast Asia focus, but it has also done deals in India, Hong Kong, China and Australia. 

Fund VII will have essentially the same strategy as the previous fund, except it will not invest in India, according to Private Equity International's source.

In a past interview with PEI, Navis co-founder Nicholas Bloy said his firm conducted an internal analysis on the geographic distribution of its IRR across the 20 companies it has exited since inception and found it has an average realised IRR of 33 percent, but Indian investments delivered minus 6 percent .

“It’s unlikely we would do another deal in India, certainly not until the existing portfolio has proven we’ve got the formula to make a good return,” Bloy said at the time.

The firm's most recent deal came last month when it acquired Australia-based Guardian Childcare Alliance from Wolseley Private Equity, in a transaction worth about $120 million, PEI reported earlier.

Navis Capital Partners is a Southeast Asia-focused firm based in Kuala Lumpur, Malaysia. The firm is run by former executives of Boston Consulting Group and has about $3 billion in assets under management.