Washington State re-ups to Affinity IV(2)

The US pension plan intends to commit $300m to the KY Tang-led Asia private equity firm, which is nearing a first close on its latest $3.5bn vehicle.

The Washington State Investment Board has approved a $300 million commitment to Affinity Equity Partners’ latest private equity vehicle, a source with direct knowledge of the matter told Private Equity International. The US pension plan could not be reached by press time. 

Affinity is targeting $3.5 billion for its fourth Asia-focused fund and will likely reach a first close shortly, the source said. 

The new fund exceeds the size of its $2.8 billion predecessor, but has the same strategy, another source told PEI. Both funds focus on control buyout deals in Asian countries including Korea, Australia, Greater China and Southeast Asia. The fund will not invest in India at all. 

Affinity IV’s PMM launched in September 2012 and expected a high re-up rate from existing investors. Washington State invested $100 million in the firm’s third fund in 2007, which has delivered a net IRR of 15.71 percent and total return multiple of 1.4x, according to a Washington State public document. 

However, due to the increased fund size, Affinity is reaching out to new LPs. It has targeted large institutional investors such as pension funds or sovereign wealth funds globally.

Affinity declined to comment on fundraising.

Affinity Equity Partners spun out of UBS Capital Asia Pacific in 2004 and is led by founder KY Tang. The firm focuses on buyouts across Asia-Pacific and currently has $4 billion in assets under management, according to PEI’s Research & Analytics division.