TPG-backed PE firm Northstar to launch up to $900m fifth fund this year

Singapore city-scape. Photo: Pixabay

TPG-backed private equity firm Northstar Group is going to hit the market later this year for its fifth fund, DealStreetAsia has learnt.

Northstar Equity Partners V is likely to raise between $800 million and $900 million, a little over the $800 million the PE firm had raised for its fourth fund, an industry source aware of the development told us.

In a bid to officially launch its next fund within 2019, the Singapore-headquartered investor is actively looking to deploy the remaining one-third of capital still in its kitty from its fourth fund. It will start marketing the next fund once it has deployed close to 70 per cent of the fourth vehicle.

Along with a blind pool from the main fund, the next fund will also be open to co-investment opportunities for Northstar’s limited partners (LPs) on a deal-by-deal basis, a strategy that has been common across its previous funds. The firm is said to have bagged about $1.5 billion in co-investments in total for its four funds.

Fund V will continue to have a similar mandate in terms of geographies that include a primary focus on investments in Indonesia, with a secondary focus on other Southeast Asian markets such as Vietnam, Singapore, Philippines and Thailand.

The fifth fund will also look at making investments in digital businesses, financial services and commerce. In fact, Northstar recently led a $100-million funding round for Vietnamese e-commerce major Tiki.

Digital investments are not a new area for Northstar, which was one of the early backers of ride-hailing firm GOJEK, an investment it has now partially exited.

Northstar is currently eyeing exits from its third and fourth funds. Its third PE fund had raised around $820 million in 2011. At that time, it claimed to have mopped up commitments worth $1.5 billion, thrice the $500 million it had intended to raise.

Founded by former Goldman Sachs banker Patrick Walujo and former PricewaterhouseCoopers executive Glenn Sugita in 2003, Northstar started investing in the private markets in 2006 and has since managed capital worth over $3 billion. With TPG among its shareholders, the firm has LPs that include global sovereign wealth funds, pension funds, endowments, family offices, and other institutional investors.

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.