Two Asia buyout firms tap investors for up to $4.25 bln in funds
HONG KONG, Sept 24 |
HONG KONG, Sept 24 (Reuters) - Two more Asia-based private equity firms have joined the fundraising bandwagon, seeking a combined $4.25 billion, sources with direct knowledge of the matter told Reuters, adding to a long list of buyout firms chasing capital in the region.
North Asia-focused private equity firm MBK Partners is planning to raise as much as $2.25 billion for its third pan-Asia buyout fund, while China's CDH Investments is tapping investors for as much as $2 billion, the sources said.
The two fundraisings come at a time when limited partners (LPs), who provide capital to the buyout industry, are tightening their purse strings and scrutinising the performance of funds before making new commitments.
Asia's share in global private equity fundraising has grown and the region is now closing in on Europe for the number two spot globally. But the pace has slowed this year, with private equity funds raising only $23 billion in Asia compared with $53 billion last year, underscoring the challenges.
In all, about $130 billion is being sought by 386 funds for Asia investments, according to data provider Preqin.
MBK and CDH declined comment. Sources declined to be identified as the fundraising plans were private.
MBK, run by former Carlyle Asia Partners president Michael Kim, is targeting about 40 percent more than the $1.6 billion raised in 2009. It was initially planning about $1.5 billion in its third fund, sources said, but decided to target a bigger war chest.
CDH, established in 2002, is a global alternative fund manager and its last dollar fund had raised $1.4 billion, one of the sources said. In all, CDH manages over $7 billion.
MBK, which has $3.8 billion in funds under management, will find itself competing for investor dollars with other funds that target those markets within their pan-Asia funds.
U.S. private equity firm Carlyle Group and Asia-based Affinity Equity Partners are both looking to raise $3.5 billion for their new Asia funds. Other global funds raising capital for Asia include KKR & Co, which is seeking up to $6 billion, while TPG Capital and another Asia firm, RRJ Capital, aim to raise up to $5 billion each.
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