Hong Kong’s Asia Alternatives raises $21m for China-focused sidecar growth fund

Photo: Bloomberg

Private equity fund-of-funds Asia Alternatives has raised $21.05 million for what looks to be a sidecar vehicle to a China-focused growth fund, its latest filing with the US Securities and Exchange Commission showed.

A sidecar fund is a pooled investment vehicle that invests alongside a main fund.

The fund, AACP China Growth Investors XIII, secured capital commitments from six investors since it started accepting investments early this month. This follows the $63.1-million close of AACP China Growth Investors XII fund in April.

Both the vehicles are managed by Asia Alternatives GP Sidecar.

Asia Alternatives is one of the largest independent Asian PE fund-of-funds, which focuses on Greater China, East Asia, Southeast Asia, and Australia. It has offices in Hong Kong, Beijing, Shanghai, and San Francisco and has over $12 billion in assets under management.

It invests with private equity fund managers across Asia and has a diversified strategy spanning buyout, growth and expansion, venture capital, and special situations funds.

The firm is currently in the market to raise Asia Alternatives Capital Partners VI, which last year received a $50-million commitment from US pension fund San Francisco Employees’ Retirement System (SFERS).

In 2017, the firm raised $1.5 billion for Asia Alternatives Capital Partners V, which had bagged a $99 million commitment from Minnesota SBI.

Asia Alternatives currently manages over $12 billion regulatory assets under management across AACP I ($515 million), AACP II ($950 million), AACP III ($908 million), and Asia Alternatives Capital Partners IV, along with its sleeve fund focused on investments outside of Japan.

It also manages AACP IV Ex-Japan Investors ($1 billion) and Asia Alternatives Capital Partners V, LP along with its parallel fund, Asia Alternatives Capital Partners V ($1.515 billion), Asia-focused private equity Funds-of-Funds (FoF), plus other related fund vehicles.

The latest fundraising comes even as PE exit value slumped in 2020 to just $3 billion from $18 billion in 2018, according to Bain & Company’s report on the Southeast Asia PE market.

The number of liquidity events also fell to eight deals last year compared with an average of 26 deals in 2015-19.

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.