Malaysia-based private equity firm Navis Capital Partners has submitted an SEC filing to launch Navis Asia Continuation Fund, LP, although it did not disclose the corpus it is targeting to raise.
DealStreetAsia has learnt that the said fund Navis Asia Green Loop Fund will be formally announced this week. The closing of its Navis Asia Fund VIII will also be announced at the same time.
Navis started marketing Navis Asia Fund VIII around the second half of 2018 and is seeking to raise up to $1.9 billion for it. We had previously reported that the firm had raised over $1 billion for the vehicle.
The fund is looking to invest between $50 million and $150 million per deal. This is even as it is willing to cut smaller cheques in the range of $25-50 million to bridge the funding gap that is largely unaddressed by investors in the region.
In May, Navis acquired a majority stake in healthcare services provider Aurelius Healthcare, a specialist in tertiary and private healthcare management. The capital injection was to help Aurelius invest in brownfield and late-stage greenfield hospital opportunities, primarily in Malaysia.
Earlier this year, Navis invested in Singapore-based financial institutions technology provider Moneythor.
The firm’s seventh fund, the 2013-vintage Navis VII, was closed at $1.5 billion. Limited partners in that fund included the Employees Provident Fund of Malaysia and the Employee Retirement System of Texas.
Founded in 1998, Navis manages approximately $5 billion in private equity capital, investing primarily in and around Asia. The firm has over 80 control transactions across the Asian region completed since its establishment.
Continuation funds refer to new vehicles set up by fund managers to buy assets from an existing fund that is nearing the end of its lifespan.
In Asia, the concept of continuation funds is still at a nascent stage. However, amidst the pandemic, PE and VC firms have started showing an interest in this alternative exit path that offers them an option to cash out.
Take the Chinese market for instance where PE giant Huagai Capital recently restructured its healthcare investments into an 800-million-yuan ($124.4 million) continuation fund. Among other deals in the country Legend Capital built a continuation fund after raising $270 million via a secondary transaction involving assets from two of its older vehicles.