Cathay Life Insurance, the insurance subsidiary of Taiwanese conglomerate Cathay Financial Holdings, has agreed to commit a total of $500 million to two US private equity funds, according to stock exchange filings.
The Taiwanese insurer has committed $250 million to a feeder fund of Strategic Partners VIII, the $11-billion PE vehicle of Strategic Partners, Blackstone’s secondary and fund solutions business.
The main fund, which hit a final close of over $11 billion in July 2019, attracted a diverse investor base, including pension funds, sovereign wealth funds, financial institutions, endowments, foundations, family offices, and high net worth individuals from over 30 countries.
The fund manager, Strategic Partners, has, since 2000, raised over $43 billion dedicated to PE, infrastructure and real estate secondary, and fund investing.
In a separate filing, Cathay Life Insurance disclosed committing another $250 million to LCP IX (Offshore), a feeder fund to the $12.15-billion Lexington Capital Partners IX vehicle managed by Lexington Partners, one of the largest independent managers of secondary acquisition funds.
The main fund, LCP IX, which commenced investing in the fourth quarter of 2018, surpassed its $12 billion fundraising target when it closed in January 2020 and significantly exceeded Lexington’s prior secondary fund, LCP VIII, which closed at $10.1 billion in 2015.
LCP IX will acquire PE and alternative assets across sectors globally through a full range of negotiated secondary market transactions, principally the acquisition of partnership portfolios from large-scale investors.
The main fund received commitments from over 450 investors, concentrated among major public and corporate pensions, sovereign wealth funds, and insurance companies in North America, Europe, Asia-Pacific, Latin America, and the Middle East.
Cathay Life is one of the largest life insurance players in Taiwan. It offers a full range of insurance solutions that comprise life, health, travel, accidents, and annuity, among others. The insurer, which has subsidiaries in China and Vietnam, has so far served nearly 8 million users.
Established in 1962 with subsidiaries in mainland China and Vietnam, Cathay Life Insurance has previously pledged commitments to funds such as TPG’s growth-equity and mid-market buyout vehicle TPG Growth V, the fourth Asia-focused buyout fund of PE giant KKR & Co, the sixth flagship buyout fund of PE firm Silver Lake Partners, and CVC Capital Partners’s CVC Capital Partners VIII.