Roc Partners to close Asia fund over 50% short of target – exclusive

The firm is set to close its third pan-Asian vehicle on $130m, against an original target of $300m.

Roc Partners, a Sydney-headquartered fund of funds manager, is set to wrap up fundraising for its third fund, more than 50 percent short of its $300 million target, Private Equity International has learned.

Roc Partners has so far raised about $130 million for ROC Asia Pacific Private Equity Fund III, which began fundraising in December 2016. The firm raised $60 million for the fund in May last year, according to an SEC filing.

“The investments we have made for our third co-investment and secondaries fund has shown strong upside; we’re fine to close it off where it is now at approximately $130 million as there is strong embedded value”, Shaw Ng, a partner at the firm told PEI.

Ng added the firm also deploys capital from its separately managed accounts across the region.

The fund’s predecessor, 2012-vintage, $220 million ROC Asia Pacific Private Equity Fund II, is fully deployed in both co-investment and secondaries. Fund II is generating an approximately 13 percent IRR and 1.5x return multiple across co-investments and secondaries, Ng noted.

Earlier this month, Roc Partners lost one of its founders, Tokyo-based Motoya Kitamura, to direct secondaries firm AB Value Capital Partners. Kitamura joined the firm as managing partner, as previously reported by PEI sister title, Secondaries Investor. Following the departure of Kitamura, PEI understands the firm will eventually shut its Tokyo office.

Meanwhile, the firm is also set to launch an office in Shanghai this year, Ng told PEI. Until now, the firm has had offices in Sydney, Hong Kong and Tokyo.

Commenting on the new office, Ng said: “It makes sense to open an office in China since a number of us spend a lot of time in the country to source opportunities. China is a market that is becoming more and more attractive as the depth and breadth of the market opportunity and its participants has grown dramatically in the last few years, and it is a market that offers opportunities to investors like us.”

Ng also expects the Shanghai office to be initially staffed by existing members of the team but will look to add more resources over time. Ng could not provide further details on the new office.

The fund of funds manager, which manages more than A$4.6 billion ($3.6 billion; €3 billion) mainly for Australian superannuation funds, was created following the management buyout of Macquarie Group’s private markets business in 2014.

The firm also has an advisory relationship with Chinese wealth manager CreditEase for its yuan-denominated portfolio.