Just happened

NewQuest’s newest quest

Hong Kong’s NewQuest Capital Partners has launched its first fund since selling a “significant minority” stake in itself to TPG last year. The firm, considered by many as the darling of Asian direct secondaries, is targeting $850 million for its fourth flagship fund as it eyes more complex GP-led secondaries deals, such as fund restructurings.

If you haven’t heard of NewQuest they’re a team to keep your eye on. The firm was founded 2011 when members of BAML’s Asia private equity unit, including Bonnie Lo (pictured), spun out in 2011. It has raised more than $1.3 billion since then and caught TPG’s attention around two years ago when the buyout giant wanted to enter the secondaries market but found the US and Europe too pricey and competitive.

China, greater

DCP Capital, a firm founded by KKR’s former co-head of Asia and chief exec of greater China David Liu, has bagged $2.5 billion for its debut fund. DCP Capital I raised $2 billion in US dollars and roughly $500 million in a parallel yuan fund. Liu co-founded DCP with Julian Wolhardt, a former partner and regional leader of China at KKR. The pair previously led Morgan Stanley’s Private Equity business in Asia and China.

Impact-ful presentation

Does impact investing mean lower returns? Just one of the five questions we asked industry experts for our latest downloadable presentation on the strategy. Impact may still be reeling from the charges against TPG’s Bill McGlashan, but investor appetite is strong and fundraising continues apace. Spoiler alert: more than 90 percent of impact opportunities are in-line with or outperform expectations.

Essentials

Earnings Watch. BlackRock pulled in net inflows of $65 billion in the first quarter, which saw the investment Goliath acquire alternative investment software provider eFront and pull in at least $1.25 billion in a first close on its perpetual direct private equity fund. On the firm’s earnings call on Tuesday CFO Gary Shedlin called the fund “a crucial new component of BlackRock’s comprehensive alternative investment capabilities”. Overall, the firm’s illiquid alternatives business saw net inflows of $6 billion, deployed $2 billion and has another $22 billion of dry powder ready to deploy. AUM is a mere $6.52 trillion.

PAI on ice. PAI Partners has paused the launch of a new dedicated mid-market buyout strategy. The Paris-based firm registered PAI Middle Market Buyout Fund in Luxembourg on 3 April, according to public company filings. The fund would have had a 10-year lifespan with the option to extend by up to three additional one-year periods.

The firm has since put these plans on ice and may consider launching such a strategy in future, a source with knowledge of the matter tells us. PAI declined to comment.

Inside tip

Are Australian GPs any good at either succession planning or winning deals against, say, Asian peers? Questions are being asked and we’re poking around on it. Our reporter Alex Lynn in Hong Kong is on the case and if you have a view – on-the-record or in strictest confidence – then message him here.

Dig deeper

There are more than 6,700 institutions in our database, including NewQuest, DCP Capital and PAI from today’s Side Letter.

He said it

“I think if people really understand what private equity is, anyone would like it, whether you’re a Democrat or a Republican.”

New Mountain Capital chief exec Steve Klinsky tells Bloomberg TV that while private equity may have an image problem, fundamentally it’s “very socially positive”.

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Today’s letter was prepared by Isobel Markham, Adam Le, Rod James and Alex Lynn.

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