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CLSA confirms $1bn equity haul for Fudo III

The Hong Kong-based private equity firm has closed its third pan-Asia value-added fund at its hard cap of $1 billion and has already deployed 25 percent of the capital.  

Hong Kong-based private equity real estate firm, CLSA Capital Partners, has officially announced the final close of its third Asia-focused real estate fund at $1billion.

The firm has wrapped up fundraising for Fudo Capital III at its hard cap of $1 billion, exceeding the initial fundraising target of $850 million, the firm said in a statement released yesterday, further adding that the final closing for the fund took place on June 5. PERE had reported the news earlier in the week based on an SEC filing.

Pension funds, sovereign wealth funds, endowments, assets managers and insurance firms from North America, Asia, Europe and the Middle East are understood to have committed equity to the vehicle, which was launched in 2014 with a strategy to deploy capital in value-added investments across the Asia-Pacific. IRRs of approximately 20 percent are being targeted from investments made via the fund. MOVED UP

With the fundraising haul, Fudo Capital III has become the largest fund raised by CLSA to date.

“We are confident that the Asia-Pacific region will continue to yield highly attractive investment opportunities going forward. Each country we invest in presents distinct opportunities unique to their respective cycles which create a diversified and complementary portfolio of real estate across Asia Pacific. Exceeding our original target of $850 million to reach the fund’s hard cap of $1 billion is a testament to continued investor interest in participating in the region’s compelling growth story,” said John Pattar, the firm’s managing director and head of the fund.

He further added that over 25 percent of the fund’s capital has already been deployed into office, retail and logistic assets in Hong Kong, Nagoya, Shanghai and Tokyo.

“We believe the fund is well-positioned to take advantage of the current opportunities across the Asia-Pacific region, as exemplified by our robust priority pipeline of distressed and undervalued assets located in Tokyo, Shanghai, Beijing and Hong Kong.”