China: NewQuest Capital hits first close on third fund, beats target

Photo: REUTERS/JASON LEE

NewQuest Capital Partners has reached a first close of about $500 million on its third fund, beating its initial target. Separately, it announced the the appointment of a new partner.

The fund has a target of $520 million, said a report in the Asian Venture Capital Journal. It was launched in November, and will invest in single and multiple-asset portfolios held by various entities.

There are major opportunities for secondary exits in China and India, where the market for initial public offerings — the path most investors take to exit with high returns — has been tepid.

The PE firm’s second fund closed at $316m in June 2014. That too had exceeded its target with participation from 10 limited partners.

Daizong Wong, a former managing director at CVC Capital Partners, will join NewQuest as a partner. Wang’s appointment will help NewQuest, which specializes in secondary transactions, to take advantage of the current scenario, until the IPO market rebounds.

“The Chinese private equity market has transformed substantially in recent years. Over the next 5-10 years, I see significant opportunity for a direct secondary focused strategy as the private equity market continues to mature,” Wang said in a statement.

NewQuest was created in 2011, when it bought Bank of America Corp‘s non-real estate private equity assets in Asia. It was backed by a group of investors including Paul Capital Partners, HarbourVest Partners, LGT Capital Partners and Axiom Asia. The fund had bought more than 20 different investments, mainly in high-growth markets of India and China, and raised a $400-million private equity fund.

Currently it has more than $700 million under management in two funds.

NewQuest invested $96 million in India’s Ujjivan Financial Services in March last year. It profitably exited China Hydroelectric Corporation in September, in a $542 million trade sale to Shenzhen Energy Co. Ltd.

Also read:

China’s Hony Capital leads $77m Series B in Linmon Pictures

Inside China’s state-backed $338b VC bounty for tech startups. Will the experiment pay off?

Warburg Pincus nets $425.7m for China Biologic Products stake sale

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.