US pension fund New York State Common Retirement Fund (NYSCRF) has committed $250 million to private equity major CVC Capital Partners’ fifth Asia fund, according to a monthly transaction report.
The Asia-focused vehicle will target control and co-control investments across Asia, primarily Southeast Asia.
The US pension fund’s investment in the PE fund was closed in February. NYSCRF is an existing LP in CVC Capital funds.
DEALSTREETASIA had reported that CVC Capital is looking to raise up to $5 billion for fund V, the largest-ever fund raised by the firm. The firm is said to have received positive pre-marketing feedback last year and is believed to have been able to secure enough commitments to make the first close in the first quarter of this year.
CVC Capital is looking to deploy $1 billion every year from the fifth fund. As of last September, about 70 per cent of the fourth fund, which raised $3.5 billion in May 2014, has been drawn, giving the PE firm another year for utilisation.
Through Fund IV, the firm acquired Malaysian homegrown snack brand Munchy’s parent in June, providing a full exit to the company’s founders and investors, including state civil pension fund KWAP.
CVC Capital had earlier also confirmed investments in Indonesia’s top snack maker PT GarudaFood Putra Putri Jaya. Also, one of its portfolio companies, QSR Brands (M) Holdings Sdn Bhd, which operates over 750 KFC outlets in Malaysia, Singapore, Cambodia, and Brunei, as well as over 450 Pizza Hut outlets in Malaysia and Singapore, will be listed on Bursa Malaysia this year.
Last December, the PE firm was said to be exploring a potential sale of Malaysia-based bereavement services provider Nirvana Asia due to strong inbound interest, where the deal could be in excess of $1.8 billion.
CVC Capital spent $1.1 billion on the Nirvana Asia buyout Asia and subsequently delisted the company from the Hong Kong Stock Exchange in 2016.
The PE firm has cumulatively raised $10.34 billion for its four Asia-focused funds. In total, CVC Capital currently has over $70 billion in assets under management.
Asia is seeing a record level of dry powder, as investors are attracted to larger funds with strong track records. Hillhouse Capital raised a record $10.6 billion for its latest Asia fund while PAG closed its sixth fund at $6 billion last November.