CVC Capital Partners has raised USD 4.1bn from international institutional investors and high net worth individuals for CVC Capital Partners Asia Pacific III, which aims to invest in estab
CVC Capital Partners has raised USD 4.1bn from international institutional investors and high net worth individuals for CVC Capital Partners Asia Pacific III, which aims to invest in established companies in the most developed economies in the Asia-Pacific region, Australia, Hong Kong, Japan, Singapore, South Korea and greater China.
Fund III is the third Asian fund to be raised by CVC and the biggest ever fund raised to invest in the region, underlining continued investor appetite for Asia-Pacific investment opportunities, and follows the success of the private equity firm’s previous Asian funds.
CVC Capital Partners Asia Pacific raised USD750m of commitments in 2000 and, the firm says, is one of the best-performing Asian buyout funds of its vintage, having generated significant cash returns from investments totalling USD525m in 17 companies.
CVC Capital Partners Asia Pacific II closed in April 2005 with USD1,975m of commitments. At the end of last year the fund was more than 80 per cent invested, having competed 12 transactions in six countries. All of the European and Asian funds advised by CVC since 1996 have produced top-quartile returns.
The firm believes that the Asia-Pacific region will continue to offer significant buyout opportunities. Increased emphasis on shareholder value, more efficient governance structures and pressure from globalisation are increasingly evident in the Asian arena, which CVC expects to result in a continuing increase in investment activity.
CVC Capital Partners was the European venture capital arm of Citicorp until it was spun out as Citicorp Venture Capital in 1993 and retains strong links with what is now Citigroup. CVC expects the US financial services group to be a significant investor in the new fund but it will not be a joint venture partner with respect to Fund III, a relationship that exists for the first two CVC Asia-Pacific funds.
‘The successful close of our third Asia-Pacific fund demonstrates the continued appetite for investment opportunities in the region,’ says CVC chairman Michael Smith. ‘This part of the world exhibits certain strong economic fundamentals and is an area in which we continue to see excellent opportunities.
‘CVC greatly values its relationship with the limited partners who have supported this new fund, many of whom have been with CVC since the inception of our business in Asia over nine years ago. We are delighted that demand remains strong among investors wishing to access this market, and we value the long-term relationships we have built with our investors both in Asia and in Europe.
‘This fundraising is also a testament to the skills of the strong team of investment professionals at CVC who have made the previous Asia-Pacific funds a success. It emphasises our local knowledge of the region and the extensive global network of contacts we have developed over the years.’
