HK-based NewQuest to raise $850m for fourth secondaries fund: Report

NewQuest Capital managing partner Darren Massara.

Hong Kong-based private equity firm NewQuest Capital Partners is looking to raise $850 million for its fourth Asia-focused secondaries fund, according to a report by AVCJ.

The firm’s third secondaries fund, NewQuest Asia Fund III, closed at $540 million in 2016. Its second fund had made a final close in July 2014 with commitments of $326 million through two vehicles.

NewQuest’s funds primarily target companies across emerging Asia, focusing on minority and control transactions of $25-75 million per company, and $50-250 million for portfolio acquisitions.

Founded in 2011, NewQuest has been focused on secondaries deals in Asia since it was spun out of Bank of America Merril Lynch’s Asia Private Equity group. It oversees $1.25 billion worth of capital commitments.

Its portfolio companies operate in a wide range of sectors including clean energy, TMT, financial services, healthcare, consumer, industrials, and logistics.

In October 2018, DEALSTREETASIA had reported that the PE firm raised $65.1 million for a co-investment/ sidecar fund to invest alongside its third Asian secondaries fund.

2018 was an eventful year for NewQuest. In addition to raising a sidecar fund, global alternative asset manager TPG took a minority stake in the PE firm via its balance sheet — not via a fund — without disclosing the financial details of the deal.

The secondary market for alternative assets is slowly heating up, as Asia-focused funds’ proportion of the market nearly doubled in the first half of 2018, according to a report by advisory firm Greenhill & Co. Secondaries deals typically refer to the trading of pre-existing investor commitments to a fund or funds.

Last December, New York-based global alternative investment manager Lexington Partners had closed a GP-led secondary transaction for TPG’s fifth and sixth Asia-focused vehicles. The deal comprised a total capital commitment of about $1 billion, the first major liquidity offering process in Asia.

Earlier in February, Singapore’s sovereign wealth fund GIC was said to be shopping a portfolio of PE fund interests valued at about $1 billion. It had reportedly offloaded around $1.7 billion of equity stakes to Goldman Sachs Asset Management last July.

Also Read:

Hong Kong-based PE firm NewQuest raises $65.1m sidecar fund

TPG enters PE secondaries market with stake in Asia-Focused NewQuest

Lexington Partners leads $1b stapled secondary transaction with TPG 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.

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.