PE firm KV Asia Capital eyes final close for $300m second fund by 2021-end

Photo: KV Asia Capital executive chairman Karam Butalia

Singapore-headquartered private equity firm KV Asia Capital has secured a $100 million first close of its second fund, which has a total target of $300 million.

The firm plans to secure a final close of the fund — KV Asia Capital Fund II — by end-2021 or early 2022, sources told DealStreetAsia.

The firm had initially targeted to secure the first close in early 2020, as reported by DealStreetAsia, but it is believed to have run into fundraising challenges amid COVID-19.

KV Asia Capital Fund II is targeting mid-market investments with a ticket size of $20-100 million in sectors like consumer, services, and manufacturing. The sources indicated that KV Asia plans to make 1-2 investments from the new fund before a final close.

The LPs of the second fund are the same as those in the first fund, the sources added.

The firm’s first vehicle, which closed in late 2013, had exceeded its $250 million target after garnering commitments from pension funds, endowments, financial institutions, fund of funds, and family offices.

KV Asia Capital is reportedly seeking to exit a few investments made by the first fund. The PE firm is pursuing a sale process for Malaysian supplement maker DXN Holdings Bhd. KV Asia Capital holds around 25% in DXN Holdings and is being advised by Morgan Stanley on the deal, per DealStreetAsia’s report in September.

The PE firm had exited from the Malaysian hypermarket TF Value-Mart in end-2020. KV Asia Capital, together with local and international partners, had acquired a controlling interest in TF Value-Mart in 2016. The investment was made from its first fund.

In May 2019, KV Asia sold the K-12 education institution Asia Pacific School (APS) to the International Schools Partnerships (ISP). APS was part of Malaysia’s tertiary education business APIIT Group which was acquired by KV Asia in December 2017, according to the company’s website. The PE firm took over APIIT from Malaysia’s state-owned private equity firm Ekuinas Nasional Bhd, which divested its entire stake for $180 million.

In 2017, KV Asia had scored two exits with the sale of Singapore’s Orange Valley Healthcare (OVH) to Singapore Press Holdings Limited (SPH) for S$164 million. It also divested its holding in Singapore’s Aalst Chocolate.

Founded in 2010, KV Asia Capital focuses on investing in mid-sized companies in Southeast Asia. The firm was launched by Karam Butalia, the former global head of Standard Chartered Private Equity (SCPE), and Vibhav Panandiker, previously of SCPE and JP Morgan Private Capital 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.

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.