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.