Private equity fund CVC raises $6.8 bln for its sixth Asia fund (updated)

APM Human Services International

21/02/2024 06:38

(Recasts with background and more detail)
       SYDNEY/HONG KONG, Feb 21 (Reuters) - Global private
equity fund CVC said on Wednesday it had raised $6.8 billion for
its sixth Asia fund, its largest to date, showcasing strong
investor demand in a challenging fundraising environment.
    The fund, exceeding its $6 billion target, is 50% larger
than its fifth Asia fund, CVC said in a statement. That fund
raised $4.5 billion in 2020.
    CVC said it increased the fund size because of demand from
new and returning investors.
    The fundraising shows investors are still willing to commit
capital to established global investment institutions even as
they confront geopolitical uncertainties, a higher interest
environment, market volatility and macroeconomic headwinds in
many markets.
    U.S.-based Bain Capital in November completed the final
close of its fifth pan-Asia private equity fund at $7.1 billion,
the largest such fund raised in 2023, exceeding its target by
40%.
    CVC's fundraising also comes as global investors have been
cautious about deploying capital in China due to an economic
slowdown, regulatory crackdown and Sino-U.S. tensions - all of
which cast a shadow over Asia funds with a heavier allocation to
the country.
    Overall, a total of $61 billion was raised in 2023 for
Asia-focused funds, less than half of the amount in 2022, Preqin
data showed.
    The Europe-based firm said its sixth fund would focus on
control, co-control and partnership investments in consumer and
services sector businesses across Asia. 
    Investors in CVC's new Asia investment vehicle include
Canadian Pension Plan Investment Board and The Oregon Public
Employees Retirement System, public disclosures showed.
    CVC has $199 billion of assets under management globally
across seven investment strategies, the fund said.
    It has made more than 80 acquisitions in Asia since 1999 and
has raised over $21 billion across Asia-focused funds, the firm
said.
    CVC's fifth Asia fund had a 23.2% net internal rate of
return as of June 30, 2023, according to public disclosures of
its fund investor California Public Employees' Retirement
System.
    Its portfolio in the region includes clothing brand A
Bathing Ape, Indian cricket team Gujarat Titans and funeral
services provider Nirvana.
    On Monday, Australia's APM Human Services International
 APM.AX  said investment vehicles owned by CVC Asia Pacific
would acquire the company for A$1.47 billion ($959.76 million).
    The firm is also considering selling its minority stake in
Vietnam's fourth biggest non-state owned commercial lender, Asia
Commercial Bank (ACB)  ACB.HM , Reuters reported in January.
    CVC, Europe's biggest buyout group, in November dropped its
plan to raise $1 billion in an Amsterdam initial public offering
due to unfavourable market conditions, Reuters has reported.

 (Reporting by Scott Murdoch in Sydney and Kane Wu in Hong Kong;
Editing by Tom Hogue and David Evans)
 ((Scott.Murdoch@thomsonreuters.com;))