Hong Kong-based Nexus Point raises $475m for China buyouts

Commercial buildings stand illuminated at dusk in Hong Kong, China, on Thursday, Dec. 27, 2018. Photographer: Justin Chin/Bloomberg

Hong Kong-based Nexus Point has reportedly raised $475 million for its middle-market buyouts in Greater China.

The firm, founded by former MBK Partners executive Kuo Chuan Kung, favors complex solutions over plain vanilla deals, AVCJ reported.

The newly-established private equity firm reportedly reached the first close at over $200 million for its debut fund in 2017.

Apart from mainland China, Hong Kong and Taiwan, the fund will also look at cross-border opportunities riding on Asia’s consumption theme.

The Fund said that it will build a portfolio of companies that possess strong franchise values and pair its investment selection process with an intense focus on operational improvements to generate superior returns.

Kung formed Nexus Point in 2017. He has 25 years of private equity and consulting experience in Greater China, Japan, Southeast Asia, Australia and the US.

Prior to Nexus Point, Kung co-founded MBK Partners and was Partner and the Head of Greater China for the firm from its founding in 2005 to 2016.

At MBK, Kung had led the buyout of China Network Systems which is Taiwan’s largest cable-television operator. He also invested in Chinese waste-to-energy business GSE Investment Corp from MBK’s fund MBK Partners II, selling it later in December 2014.

Prior to MBK Partners, he was Managing Director for Carlyle Asia Partners where he was responsible at for investments in China, Southeast Asia and Australia.