Private equity fund of funds Asia Alternatives has held the final close of over USD1.8 billion in new commitments for Asia Alternatives Capital Partners IV (AACP IV) and its related fund vehicles (Fund IV).
"We are extremely grateful that a significant number of our original limited partners continue to support us and we are pleased to have added a number of highly respected and well-recognised new investors in Fund IV," says Melissa Ma, Co-Founder and Managing Director of Asia Alternatives.
The largest of the Funds is Asia Alternatives Capital Partners IV, LP which, along with its sleeve fund focused on investments outside Japan, AACP IV Ex-Japan Investors, LP, closed on USD1 billion of committed capital, above their combined target of USD750 million. AACP IV is the successor fund to Asia Alternatives Capital Partners III, LP (AACP III), which closed in July 2012. Earlier funds include Asia Alternatives Capital Partners II, LP (AACP II), which closed in September 2008, and Asia Alternatives Capital Partners, LP (AACP I), which closed in May 2007.
The Fund IV closings totalling over USD1.8 billion represent an approximate 20% increase over the last announced fund closings in August 2012 of over USD1.5 billion across AACP III and its related fund vehicles.
"In the 10th year since our founding, Asia Alternatives is proud of the strong partnerships we have formed with both our investors across the world and with our fund managers across China, India, Japan, Korea, South East Asia and Australia. The Asia private equity ecosystem has developed well over the last decade and we look to further growth for years to come," Ma says.
The Funds are focused on building a diversified portfolio with an emphasis on top-performing local Asian fund managers. Asia Alternatives invests in Greater China, Japan, Korea, South East Asia, India and Australia and across buyout, growth, venture capital and special situations funds. The firm has invested in over 40 managers in Asia since inception.
"Portfolio construction is a critical focus at Asia Alternatives, as we seek risk diversification across geographies, strategies and managers that we actively monitor. The opportunity set for Asia private equity is continuously evolving and we intend to capitalize on those investments that provide the best risk-adjusted returns," Ma concluded.
Approximately 80% of investors in AACP IV were from pre-existing relationships in AACP III, AACP II and AACP I. Investors in the Funds represent a global pool of private capital sources, such as state and corporate pension funds, foundations, university endowments, insurance companies and family offices in the United States, Canada, Europe and Asia. Institutional investors across all Fund IV vehicles include Cathay Life Insurance Co., Comprehensive Financial Management, Florida State Board of Administration, Jasper Ridge Partners, Massachusetts Mutual Life Insurance Company, New York State Common Retirement Fund, San Francisco City and County Employees' Retirement System, Teachers' Retirement System of the State of Illinois, University of Missouri, University of Vermont and Virginia Retirement System.
Asia Alternatives is one of the first independently formed Asian private equity fund-of-funds. The firm also received the first Limited Partner QFLP (Qualified Foreign Limited Partner) license in China, which allowed Asia Alternatives to invest in selected, qualified RMB-denominated private equity investments.
