Chart of the week: Hong-Kong fund managers smash targets

Hong Kong-based fund managers continue to surpass targets initially set for closed ended private equity funds


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As Headland Capital Partners halts fundraising for Headland Private Equity Fund 7 (HPEF 7) to focus on its existing portfolio companies, PEI’s Research & Analytics team have looked at the difference between capital targeted by Hong-Kong domiciled private equity funds compared with capital gathered by the vehicles at final close.

In 2015 to date, $8.1 billion has been raised by fund managers based in Hong Kong for funds closed, by eight private equity vehicles. The funds had a combined target of $6.15 billion, meaning that 2015 is so far the most successful fundraising year for Hong Kong-based fund managers in terms of capital targeted versus capital raised. Following a dip between 2012 and 2013, aggregate capital collected has increasingly surpassed fundraising targets.

Baring Asia Private Equity Fund VI is the largest fund raised by a Hong Kong firm to close in 2015 to date. The growth equity vehicle gathered almost $700 million more from investors than its initial target of $3.3 billion.

There are 50 Hong Kong-domiciled closed ended private equity funds currently in market or coming to market. Collectively the funds are targeting $21.64 billion to invest globally and have already gathered $6 billion to date. With four months of the year left to go, the possibility lies therein that Hong Kong based firms will continue to successfully beat targets by year end.