CLSA third Asia fund oversubscribed at $1bn

The Hong Kong-based private equity real estate firm, CLSA Capital Partners has reached a final close on its third real estate fund in the Fudo series.    

Hong Kong-based private equity real estate firm, CLSA Capital Partners has closed its third Asia-focused real estate fund at its hard cap of $1 billion. According to an SEC filing, the firm has reached a final close on Fudo Capital III, blasting through its fundraising target of $850 million.

The third pan-Asia opportunity fund is the largest fund CLSA has raised to date. Launched in January 2014, a first close of $385 million for the vehicle was announced by the firm just two months after the official launch. Soon after in June, the second closing was also announced, taking the total equity hauled for the vehicle to $540 million.

Placement agent Greenhill & Co assisted the firm in fundraising. The investors in Fudo Capital III are understood to be a mix of new investors and those which have previously committed capital to other funds in the Fudo series. North American and European investors were among the fund’s first wave of backers, while Asian and Middle Eastern investors were also expected to figure.

With the latest fundraising haul, the firm has successfully exceeded fundraising targets for each of the three funds in the Fudo series. Fudo Capital I raised $430 million in 2005 versus a $350 million target, and Fudo Capital II raised $815 million in 2009 versus its $750 million target, according to PERE's Research & Analytics division.

Similar to the earlier two funds in the Fudo series, the firm will pursue a value-add investment strategy for Fudo Capital III focused on adding value to lower-grade office, retail and residential properties. IRRs of approximately 20 percent are being targeted from the investments made via the vehicle, which is not expected to be invested in development projects.

PERE has also reported previously how the firm has successfully generated gross returns of 39 percent across both the funds.

CLSA declined to comment on the fundraising when approached.