RRJ targets $4bn for Asia

The Hong Kong-based firm expects to close its third and largest vehicle in June

RRJ Capital, the pan-Asian private equity firm formed by the Ong brothers, is reportedly back in the market with a $4 billion vehicle, which will be its largest offering yet.

The firm, which has successfully raised two private equity vehicles for largely China, but also Southeast Asia, deals, has already received $3 billion in soft commitments for its third fund, the Financial Times reported today citing sources familiar with the matter.

RRJ did not respond to requests for comment, but industry sources corroborated that the firm is back in the market, having raised $5 billion for its second private equity fund in 2012.

The firm was founded in 2011 by Richard Ong, one of the three co-founders of Hopu Investment Management, and his brother Charles Ong.

As well as investing in Asia, RRJ targets deals globally that have a strong China element. The fund also has close ties to the $177 billion sovereign wealth fund, Temasek Holdings, where Charles Ong had previously held a series of management positions.

For example, the firms joined together earlier this year to invest €1.3 billion in the Japan and Europe operations of Dutch insurance company ING Group, Private Equity International reported earlier.

In November, the firm tied up with Temasek again, buying $1 billion worth of convertible notes issued by Houston-based energy company Cheniere Energy, reserving the right to transfer a portion to the Singaporean sovereign wealth fund.

The pair has invested in Cheniere before, selling its stake in the business in August last year having invested a combined $468 million in 2012.