Asian secondary private equity (PE) firm TR Capital announced on Thursday the final closing of its fourth flagship fund TR Capital Fund IV at the hard cap of $350 million, exceeding the initial target of $300 million.
The fund attracted capital commitments from new and returning investors, including sovereign wealth funds, pension funds, asset management companies, and family offices across Asia, Europe, and North America. The TR Capital team also made a commitment to the vehicle.
The completion of the new vehicle comes as Hong Kong-based TR Capital sees “an ever-increasing pipeline of secondary opportunities” in Asia, especially in China, said Paul Robine, founder and CEO of TR Capital, in a statement.
“The demand for liquidity in the Asian private equity market has never been greater, offering an attractive market dynamic for TR Capital. As the secondaries market continues to grow in size and complexity, LPs are increasingly recognising that active secondaries are a better and more innovative way to invest in fast-growing Asian companies,” said Robine.
He said that the firm expects to invest $600 million over the next few years through Fund IV and its co-investment programme, where limited partners (LPs) co-invest alongside TR Capital.
The Fund IV has already completed three investments to date, including a yuan-to-US dollar restructuring that allowed GP Kinzon Capital to open itself to foreign investors. The deal, advised by investment bank Lazard, involved seven assets and was worth about $100 million including follow-on capital.
The other two transactions are a secondary direct investment in Vietnam’s Pharmacity, which operates over 300 pharmacies; and an acquisition of a portfolio comprising interests in Genesis Capital I, a China-focused 2015 vintage PE fund, Chinese truck-hailing giant Full Truck Alliance, and artificial intelligence (AI) startup Aibee.
Founded in 2007 and led by Robine, as well as managing partners Colin Sau and Frederic Azemard, TR Capital focuses on providing liquidity solutions to owners of PE assets through secondary direct (single asset) and fund restructuring (portfolio) transactions. It targets significant positions in established companies in the technology, consumer, and healthcare sectors.
With 20 professionals across Hong Kong, Shanghai, and Mumbai, TR Capital currently manages four funds with capital commitments of close to $1 billion.
By far, it has closed 34 secondary investments and built a series of funds including TR Capital Fund I (2008), TR Capital Fund II (2012), TR Capital Fund III (2016), and TR Capital Fund IV (2019).