Exclusive: KV Asia Capital plans $500m second vehicle, launch likely by year-end

Singapore. Photo: Bloomberg

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.

Also Read:

Malaysia’s Equinas sells APIIT for $180m in KV Asia-backed management buyout

Singapore: SPH acquires Orange Valley Healthcare from KV Asia Capital in $117m deal

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.