Navis Capital set to hit first close of eighth fund next month

Nicholas Bloy at the Asia PE-VC Summit 2018 organised by DEALSTREETASIA

Kuala Lumpur-headquartered private equity firm Navis Capital Partners is about to hit the first close of its eighth vehicle, Navis VIII, which is seeking to raise about $1.75 billion, according to an industry executive familiar with the matter.

DEALSTREETASIA had earlier reported that the latest fund has a hard cap of $1.9 billion. Navis expects to announce a final close for the fund by the end of this year.

The executive, who spoke on the condition of anonymity, said Navis’ latest fund recently held a ‘dry close’ at $500 million and will have its wet close at $1 billion in April.

When contacted, Navis declined to comment on its fundraising plans.

Navis’ seventh fund, the 2013-vintage Navis VII, was closed at $1.5 billion. It is believed to be almost fully drawn.

The new fund will cut check sizes between $50 million and $150 million, which is its sweet spot, and is also likely to make smaller investments — in the $25-50 million range — to bridge a funding gap it sees as largely unaddressed by other investors in the region.

Last November, Navis exited its controlling stake in regional cosmetics business Alliance Cosmetic Group to Japan-based Mandom Corporation after holding on to that investment for almost a decade. Although no financials were disclosed, Navis co-founder and managing partner Nicholas Bloy had said that the exit environment was not challenging.

The firm picked a majority interest of 80 per cent in Alliance in December 2009 together with Malaysian government-linked private equity firm Ekuiti Nasional Bhd (Ekuinas) through a special purpose vehicle (SPV) for RM160 million ($38 million).

In November 2018, Navis also acquired Australian medical device company Device Technologies for over $508.7 million. It was the PE firm’s largest deal to date.

Founded in 1998 by Richard Foyston, Bloy and Rodney Muse, Navis focuses on buyouts, recapitalisations and financial restructuring across Asia, especially in Southeast Asia, Australia and Hong Kong. It currently manages about $5 billion in public and private equity capital and has made about 80 controlling investments in the region.

Interestingly, although having invested in the region for two decades, Navis has never had an IPO exit. In a fireside chat at Asia PE-VC Summit 2018 organised by DEALSTREETASIA in Singapore last September, Bloy had said that the PE firm may start looking into public listing as a potential divestment strategy in the future.

Going forward, Bloy said Navis will employ a dual track process, in which both IPO and trade transactions will be treated as possible exit paths. By grooming a company for IPO, Navis expects to receive better value for the company, even if it ends up being acquired by a trade buyer.

Also Read:

Navis Capital divests controlling stake in Alliance Cosmetic Group to Japan’s Mandom

PE firm Navis may start looking at IPOs as an exit option, says co-founder Bloy

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.