UOB fund of funds nears $300m final close

The second Asian fund of funds being raised by Portfolio Advisors and Singapore's United Overseas Bank expects to hold a final close by the end of 2009.

UOB PA Pan Asia Select Fund II, a joint ventuer between Singapore-based United Overseas Bank (UOB) and US-based Portfolio Advisors, is nearing a $300 million final close, Low Han Seng, executive director and head of the private equity funds business at UOB, told sister news site PEI Asia.

The fund, which received a $40 million anchor investment from UOB, has made four commitments so far, Low said. He did not disclose the funds to which it has committed.

The fund of funds is likely to commit between 30 percent and 50 percent of its capital to pan-regional funds. For larger markets such as China, India and Australia, the fund will choose commitments to country-focused funds, Low said. It will seek exposure to smaller markets such as those in Southeast Asia and certain strategies such as distressed investments and buyouts through commitments to pan-regional funds, Low added.

The fund’s predecessor, which closed on $190 million in October 2007, made 15 primary commitments and is fully committed on the primary side, with some capital remaining for co-investments and secondaries, Low said.

UOB has been making commitments to private equity funds since 1988. Prior to the launch of its first fund of funds, the bank made commitments to private equity funds on a proprietary basis. It no longer makes commitments to funds directly.

Since 1988, UOB has committed $400 million to more than 50 private equity funds globally, a majority of which have been Asian funds.

Portfolio Advisors is a private equity and private real estate investment advisory firm. Both UOB and Portfolio Advisors are involved in fundraising, sourcing, due diligence and investment decision making, Low said.