CVC Capital Partners (“CVC”) today announces that it has successfully raised US $ 4.1 billion from a range of both international institutional investors and high net worth individuals. The fund, CVC Capital Partners Asia Pacific III L.P. (“Fund III”), aims to invest in established companies in the most developed economies in the Asia Pacific region (Australia, Hong Kong, Japan, Singapore, South Korea and Greater China).
Fund III, is the third Asian fund to be raised by CVC, and the biggest ever fund raised in the Asia Pacific region which underlines continued investor appetite for investment opportunities.
Fund III follows the success of CVC’s previous fundraising in the region. This includes the CVC Capital Partners Asia Pacific L.P. (“Fund I”), which raised US$750m of commitments in 2000 and is one of the best performing Asian buyout funds of vintage year 2000, having invested US$525 million in 17 companies and generating significant cash returns.
CVC Capital Partners Asia Pacific II L.P. (“Fund II”) closed in April 2005 with US$1,975 million of commitments. As at December 2007, Fund II was over 80 per cent invested having competed twelve transactions in six different countries. All of the funds, both in Europe and Asia, advised by CVC since 1996 have produced top quartile returns.
CVC has established a leading position in the Asia Pacific buyout market, having executed its proven methodology over an eight-year period, emphasising hands-on involvement in portfolio companies with a focus on long-term value creation and cash realisations to investors. CVC Asia Pacific was named “Best Private Equity Fund” by Asian Investor magazine in 2007.
CVC believes that the Asia Pacific region will continue to evolve and present significant buyout opportunities. Increased emphasis on shareholder value, more efficient governance structures and globalisation’s pressure on optimisation are increasingly evident in the Asian arena, which CVC expects will result in continued increases in investment activity.
Citigroup is expected to be a significant investor in Fund III but will not be a joint venture partner for CVC Capital Partners with respect to Fund III. The joint venture relationship with Citigroup will continue for the remainder of the terms of Funds I and II.
Michael Smith, Chairman of CVC commented: “The successful close of our third Asia Pacific 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.
CVC greatly values its relationship with the LP's who have supported this new fund, many of whom have been with CVC since the inception of our business in Asia over nine years ago. We are delighted that demand remains strong among investors wishing to access this market and we value the long term relationships we have built with our investors both in Asia and in Europe.
This fundraising is also a testament to the skills of the strong team of investment professionals at CVC who have made CVC’s predecessor Asia Pacific Funds a success. It emphasises our local knowledge of the region and the extensive global network of contacts we have developed over the years.”