Exclusive: Indonesia-focused PE firm Northstar Group closes fourth fund at $800m

Visual from the Northstar's website

Singapore headquartered private equity firm Northstar Group has hit the final close of its fourth fund at around $800 million, an executive with direct knowledge of the development said.

The Indonesia-focussed PE firm’s fourth fund had a hardcap of $1 billion, and the final close for its latest vehicle is in line with the amount it has raised in its third vehicle, this executive added.

Northstar, which counts U.S. private equity giant TPG Capital as a shareholder, had raised around $820 million for its third vehicle in 2011. At that time, it had got commitments to the tune of $1.5 billion, three times the $500 million it intended to raise. The third fund became fully invested by calendar year end 2014.

Northstar, that was founded by former Goldman Sachs banker Patrick Walujo and former Pricewaterhouse Coopers executive Glenn Sugita in 2003, had commitments for over $1.1 billion for its latest vehicle, the executive quoted above added.

Several investors from its earlier funds are also LPs in Northstar Group’s fourth fund.

The PE firm had achieved the first close for its fourth vehicle in July 2014 when it raised $500 million.

Northstar Group declined to comment.

DEALSTREETASIA had earlier reported that Singapore-based PE firm had also finished with investments from its third fund.

TPG, which has over $74 billion of capital under management, has a minority 20 per cent stake in Northstar.

As reported by this portal earlier, the latest vehicle – Northstar Equity Partners IV – will focus on the consumer, retail and services space.

This year has also seen several Singapore and Hong Kong based, and Asia focussed private equity firms raise similar amounts.

In January Singapore-based institutional real estate private equity investment firm, SC Capital Partners held the final close of its fourth real estate private equity fund on $850 million. In July, SC Capital Partners also launched a core plus Asia-focused property fund, with a target to raise $400 million. The same month saw Pamfleet Group, the Singapore and Hong-Kong based real estate private equity firm reaching the final close on its second vehicle on $400 million, beating its initial target of $350 million.

In August, Oversea-Chinese Banking Corp (OCBC), Singapore’s second-largest bank by assets, and its asset management unit Lion Global Investors,  announced the final close of their first PE vehicle at S$550 million.

Last month, this portal had reported that Everstone Capital Partners III, the private equity fund of Everstone Group, has raised $730 million for its third fund.

Related: Exclusive: Northstar Group nears final close of $1b fourth fund

Exclusive: SC Capital launches Asia core-plus $400m fund

SC Capital raises $850m new realty fund

While DEALSTREETASIA in its earlier report had said that 70 per cent of Northstar’s fourth vehicle would be invested in Indonesia, the executive quoted above added that Northstar would be looking at investments across the region from this vehicle.

The latest vehicle will also follow the same approach as its earlier funds with ticket sizes between $50-$100 million, and the portfolio will be a mix of controlling stakes, minority stakes in the invested companies.

In 2010, Northstar had raised $276 million towards its second fund.

Correction: October 9, 2015: An earlier version of this article and an earlier headline, published on October 7, said Northstar had hit final close at $880 million. This stands corrected to $800 million, after executives in the know clarified that the final close was in this range. 

Also Read: China, Southeast Asia-focused RRJ Capital closes Asia’s biggest PE fund to-date, at $4.5b

Private equity deals and exits in Asia-Pacific reach new highs in 2014

CapitaLand’s Ascott partners Qatar Investment for $600m fund

 

 

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.