Affirma Capital launches new Korean EM growth fund

South Korea

Affirma Capital has held a first close of its fifth Korea fund, Ascenta V, with an AUM of USD403 million, to invest in buyout and growth capital opportunities in emerging markets including Asia, Africa, and the Middle East.

Singapore-headquartered Affirma Capital is targeting a final close for Ascenta V of USD636 million by October 2021. Affirma Capital increased the fund's target size by 40 per cent from USD455 million, despite raising funds during the pandemic, according to the firm.

Ascenta V has received commitments from 14 limited partners so far including Korean sovereign wealth funds and major Korean banks. “We are pleased to retain key limited partners while inviting new reputable financial institutions in Korea,” said Taeyub Kim, founding partner and head of Affirma Capital Korea.

“We continue to focus on mid-market growth and buyouts with an added focus on ESG and global expansion, a mandate which has differentiated Affirma Capital over decades. We also plan to introduce unique Asian investment opportunities to Korean and global LPs by originating with Affirma Capital's global team,” he added.

Affirma Capital announced the completion of part secondary sale and subscription of IPO in Craftsman, an automotive component and precision engineering company in India, at the end of March. The stock started trading on the stock exchanges in India starting 25 March.

The fifth and latest fund's AUM has doubled that of its predecessor, Ascenta IV, Affirma Capital’s last Korean fund. The new fund will deploy capital into Korea as well as in China, India, and other Southeast countries.

Affirma Capital is an emerging market-focused private equity firm with a total AUM of USD3.5 billion. Founded through the spin-off of Standard Chartered Private Equity from Standard Chartered Group in 2019, Affirma invests in buyout and growth capital opportunities in emerging markets.