Exclusive: CVC Capital Partners is said to seek up to $5b for fifth Asia fund

Hong Kong streets. Photo: Katie Manning/Unsplash

Private equity (PE) firm CVC Capital Partners is targeting to raise up to $5 billion for its fifth Asia Pacific fund, according to two people with knowledge of the plan.

The PE firm has started sounding out limited partners, or investors, about the latest fund and will start marketing it actively by the end of this year.

The fund size and fundraising schedule have, however, not been formalised yet and are subject to change, the two people said. They declined to be identified since the information is confidential.

CVC had not responded to DEALSTREETASIA queries on the new fund at the time of publishing.

The PE firm’s fifth Asia Pacific fund will follow the $3.5-billion CVC Asia Fund IV, which was closed in May 2014. One of the two people said that about 70 per cent of the fourth fund has been utilised, with full deployment expected by early next year.

The fourth fund was targeted at businesses benefiting from increased consumer affluence and domestic demand in Greater China, Southeast Asia and Japan and Korea.

Earlier this month, a wholly-owned subsidiary of CVC Asia Fund IV announced the acquisition of online retail trading platform, currency data and analytics company OANDA.

Last year, CVC’s fourth Asia Pacific fund had acquired a majority stake in Riraku, the largest budget relaxation therapy chain operator in Japan.

CVC Capital Partners has cumulatively raised $10.34 billion for its four Asia Pacific funds.

Its notable Asia deals include the $1.1-billion privatisation of bereavement care provider Nirvana Asia, which was the first ever public-to-private transaction on the Hong Kong Stock Exchange completed by a PE firm.

CVC also holds stakes in Japan’s senior home, nursery school and cleaning services provider Hasegawa Holdings as well as Indonesia’s PT Siloam International Hospitals and consumer goods firm PT Softex Indonesia.

Record level dry powder being raised for Asia

PE firms have been on a fundraising spree as record-level capital piles up for investments in Asia.

KKR closed a $9.3-billion Asia-focused fund last year, the biggest in the region yet. Carlyle Group is said to be nearing the close of its biggest-ever Asia PE fund at $6.5 billion, while Hong Kong’s PAG is aiming to raise up to $6 billion for its new fund.

Bain Capital is seeking up to $4 billion for its Asia-focused fund, while Blackstone said it is nearing its revised hard cap of $2.25 billion for its maiden Asia PE vehicle.

Regional PE firms such as Hillhouse Capital, Baring PE Asia and Primavera are all said to be currently raising money for their own PE funds.

According to Preqin, a total of 342 funds raised a combined $107 billion in Asia last year.

Also Read:

Carlyle set to mop up $6.5b for its largest Asia PE fund to date

Hong Kong’s PAG said to seek as much as $6b for latest Asia PE fund

Bain Capital targets $4b for new Asia-focused fund

Blackstone’s maiden Asia PE fund nearing $2.25b hard cap

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.