Asia Alternatives raises $2 bn to back PE, VC funds in the continent

 Asia Alternatives raises $2 bn to back PE, VC funds in the continent

Asia Alternatives, one of the largest independent Asian private equity fund-of-funds, said Wednesday it has raised $2 billion in new commitments across several fund vehicles including at least one for India.

While China represents the largest single-country exposure, Asia Alternatives has also backed buyout firms in Japan as well as other fund managers in Southeast Asia and India.

The funds are focused on building a diversified Asia private equity portfolio with an emphasis on top-performing local Asian fund managers, the firm said. Over 85% of committed capital came from pre-existing relationships, helping the firm to complete the largest raise in its over 15-year history.

“Our extensive experience investing through market cycles and the lasting relationships we have forged with leading fund managers across Asia provide an unique perspective and the ability to take advantage of the opportunities market volatility has created,” said Melissa Ma, co-founder and Managing Partner of Asia Alternatives.

The largest of the funds is Asia Alternatives Capital Partners VI, which, along with its parallel funds, closed with $1.1 billion of committed capital, exceeding their combined target of $1 billion. This fund is the successor to Asia Alternatives Capital Partners V, which closed in September 2017.

Earlier funds include AACP IV, which closed in April 2015; AACP III, which closed in July 2012; AACP II, which closed in September 2008; and AACP I, which was raised in May 2007.

Rebecca Xu, co-founder and Managing Director of Asia Alternatives, said: “We are excited to get to work investing this fund, and maintain a strong commitment to China, where we continue to see both short- and long-term opportunities underpinned by fast-evolving and growing consumer demand, together with impressive development in technological innovation.”

Investors in the new funds represent a global pool of private capital sources, such as state and corporate pension funds, foundations, university endowments, insurance companies and family offices in the United States, Canada, Europe, Japan and Asia.

Institutional investors across the funds include The Boeing Company, Cathay Life Insurance Co., Comprehensive Financial Management, Dai-ichi Life Insurance Company, Intermountain Healthcare, Jasper Ridge Partners, Massachusetts Mutual Life Insurance Company and McKnight Foundation

A number of US investors also came in as limited partners. These include Florida State Board of Administration, Maryland State Retirement and Pension System, Minnesota State Board of Investment, New York State Common Retirement Fund, Public Schools Retirement System of St. Louis, San Francisco City, and County Employees’ Retirement System, and Virginia Retirement System.

Asia Alternatives manages $16.5 billion of regulatory assets under management. It invests with top-performing private equity fund managers across Asia, primarily in Greater China (Mainland China, Taiwan, and Hong Kong), Japan, Korea, Southeast Asia, India and Australia. The firm builds portfolios that are diversified across buyout, growth and expansion, venture capital and special situations funds, as well as direct co-investments and secondaries.

Asia Alternatives has over 50 professionals across offices in Hong Kong, Beijing, Shanghai and San Francisco.

Eaton Partners and Diamond Dragon Advisors acted as placement agents for Asia Alternatives and Ropes & Gray LLP served as legal counsel.

Vivek Sinha

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