Hong Kong-based Asia Alternatives targets $1.3b for sixth fund-of-funds

Visual from Asia Alternatives Management website.

Hong Kong-based private equity firm Asia Alternatives is seeking to raise $1.3 billion for its sixth fund-of-funds to invest in 20-25 managers, according to a board meeting document from a limited partner (LP).

The new vehicle, Asia Alternative Capital Partners VI (AACP VI) will invest in Greater China (45-55% of the fund), Japan and South Korea (20-40%), India (15-25%), and Southeast Asia and Australia (10-15%), shows the document from the Minnesota State Board of Investment.

AACP VI will invest in buyout, growth and expansion, venture capital and special situations funds.

Over 90% of the capital will be invested in Asia-based fund managers, with the remainder to be allocated to US or European PE firms.

Furthermore, AACP VI will earmark 20-30% of the fund for co-investments and secondary purchases of fund investments to enhance returns, Minnesota SBI said. These investments will primarily be in existing managers.

The investment period of the sixth vehicle will be five years from the close of the fund.

Minnesota SBI has approved to invest $100 million in MN Asia Investors, a separately managed account with Asia Alternatives.

The impetus for the new commitment came from “a number of attractive opportunities” the US pension fund was able to participate in after its commitment to AACP VI last year.

In Q3 2020, Minnesota SBI approved a commitment to invest $200 million across two pools of capital, a balanced pool that will be invested in parallel with AACP VI, and a co-investment pool to substantially make similar investments as AACP VI.

The MN Asia Investors commitment will enable more co-investment opportunities in the 2021-22 period, the $129 billion pension scheme added.

Minnesota SBI had invested $100 million in AACP V, which raised a total of $1.52 billion.

Asia Alternatives had raised around $3.3 billion for its previous four funds, which generated 11-17.6% IRR.

Founded in 2006, Asia Alternatives has invested in Asia-based funds such as MBK Partners III, Hosen Investment Fund III, and GenBridge Capital Fund I.

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.