CVC Asia Pacific closes $4.1bn fund

Fundraising for Asia shows no signs of abating as the pan-Asian buyout firm raises the region's ‘biggest ever fund’, its first since ending a joint venture with Citi.

CVC Asia Pacific, an affiliate of European buyout firm CVC Capital Partners, has raised $4.1 billion (€2.6 billion) to invest in Australia, Greater China, Hong Kong, Japan, Singapore and South Korea.

This is CVC’s third Asia-dedicated fund following its Asia Pacific Fund I, which closed on $750 million in 2000, and Fund II which hit $1.975 billion in 2005. According to a statement by the firm, more than 80 percent of Fund II has been deployed in 12 deals.

The first two were managed jointly by CVC and erstwhile banking parent Citi, CVC Capital Partners Asia Pacific III is will be managed independently by CVC.

At the time when CVC terminated its joint venture agreement with Citi, Maarten Ruijs, managing partner and chief investment officer of CVC Asia Pacific, told PEO that “Citigroup will no longer own any shares but will make a capital commitment including its clients’ money.”

CVC is also raising a global buyout fund for investment in Europe and the US. It is targeting around €11 billion and according to Private Equity News is nearing a first close of €8 billion.

Chairman of Michael Smith said in a statement that the close of the Asian fund “demonstrates the continued appetite for investment opportunities in the region. This part of the world exhibits certain strong economic fundamentals and is an area in which we continue to see excellent opportunities.”

The firm's Asian investments include Stella Group, an integrated travel and hospitality group in Australia; PBL Media, a diversified Australian media group; Amtek, a Singaporean precision metal stamping company; and Malaysian packaging company GS Paper and Packaging.

The fund comes less than a month after Australia’s Pacific Equity Partners closed its A$4 billion ($3.7 billion; €2.4 billion) fund.

CVC Asia Pacific declined to comment beyond the statement.