US-based private equity investor Adams Street Partners is targeting up to $350 million for its Asia fund-of-funds, a vehicle that will focus on the smaller-to-mid end of the market with exposure to secondary and co-investments.
Adams Street Asia Fund 2020 LP has a capacity of $200-350 million, targeting Asian buyout, venture and growth equity, according to a presentation by the Ventura County Employees’ Retirement Association (VCERA), a limited partner (LP) in Adams Street Partners funds.
The new Asia vehicle also targets a net return of 15 per cent.
The development was first reported by Private Equity International. Adams Street Partners declined to comment.
Asia Fund 2020 is part of the $41-billion PE firm’s nearly $5-billion fundraising efforts for its direct investing and fund investing programmes, including the 2020 Annual Global Fund at $800 million and the Venture Innovation Fund III at $525 million.
Adams Street Partners also plans to launch a global secondary investment fund this year, without providing a target for the VCERA presentation.
VCERA, which has a $250-million total subscription to Adams Street Partners’ funds, said its investments in the latter recorded a 12.9 per cent IRR since inception until the end of September 2019.
In 2019, Adams Street Partners raised about $740 million for its 2019 global fund, following over $2 billion fundraising for the Global Secondary Fund 6 and Private Credit Fund I. In the same year, Adams Street Growth Equity Fund VII held a first close with an undisclosed amount.
The Chicago-headquartered firm has had a 9.3 per cent allocation to Asia, the third largest targeted market after the US and Europe, according to VCERA.
The PE firm began its dedicated research in Asia in 1999 and made the first commitment in the region in 2004. It currently operates Asian offices in Beijing, Seoul, Singapore and Tokyo.
While the majority of its investments are funneled in the US, the firm has set a higher interest in Asia, as well as attracted Asian LPs in the past.
Adams Street Partners has been investing in this region with a focus on China and at the same time looking at India and Southeast Asia, its Singapore-based partner Yar-Ping Soo told DealStreetAsia in an earlier interaction.
“We prefer early-stage managers in the venture and smaller funds in growth/buyout. They offer a better risk/return profile and have more up-sell opportunities,” she had said, adding “Asia’s PE penetration is still relatively low and will continue to increase.”