Singapore-headquartered private equity firm KV Asia Capital is planning to raise about $500 million for its second vehicle, KV Asia Capital Fund II, an industry source aware of the development told this portal. This will mark a near doubling of fund size from its first vehicle that closed at $263 million in late 2013.
Fund II is yet to be launched as the firm is sounding off its existing LPs on the next steps. KV Asia Capital is currently finalising its last investment from Fund I before it goes ahead to launch Fund II, expected to happen sometime later this year.
When contacted, KV Asia Capital declined to comment on the target amount for Fund II or a timeline of its launch.
KV Asia Capital has completed two exits in 2017 from its first vehicle – the first one being Orange Valley Healthcare (OV), which was acquired by Singapore Press Holdings Limited (SPH) for S$164 million ($120 million). The PE firm had initially acquired OV in April 2014 for an undisclosed sum.
KV Asia Capital’s website shows that Singapore-based premium chocolate maker Aalst Chocolate is listed as one of the firm’s “prior investments”, along with OV. The firm picked a stake in Aalst in March 2015 for an undisclosed sum.
Past notable investments include Malaysian hypermarket chain TF Value-Mart Sdn Bhd, DXN Holdings, and APIIT Education Group. Average ticket sizes range between $25 million and $75 million.
This January, KV Asia Capital, along with APIIT’s existing management, took over the education group from Malaysia’s state-owned PE firm Ekuinas Nasional Bhd. Ekuinas divested its entire stake in APIIT for $180 million.
KV Asia Capital’s Fund I was closed in August 2013 at $263 million, exceeding its initial $250-million target, where pension funds, endowments, financial institutions, fund of funds and family offices had committed into the vehicle.
Founded in 2010 and with offices in Malaysia and Indonesia (outside the city-state), the firm focuses on investing in the mid-market in Southeast Asia, predominantly buyout and minority investments. It was launched by Karam Butalia, the former global head of Standard Chartered Private Equity, and Vibhav Panandiker, previously of SCPE and JP Morgan Private Capital Asia.