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CVC Capital hits hard cap for fifth Asia-Pacific fund
Photo Credit: VCCircle

CVC Capital Partners has raised $4.5 billion for its fifth Asia-Pacific fund even as private equity fundraising in the region drops due to the coronavirus outbreak.

The fund surpassed the target of $4 billion to hit the hard cap thanks to strong demand from a diversified global investor base of new and returning institutional investors, the firm said in a statement. Hard cap is the maximum amount a private equity fund can raise.

The fifth fund is bigger than the $3.5 billion predecessor fund and “reflects the expanded investment capability” of CVC's network of eight offices across Asia, the firm said.

The development comes at a time when PE fundraising in Asia has been at the lowest level since the global financial crisis a decade ago, as the coronavirus outbreak curbed travel and roiled markets and businesses.

A number of other PE firms are also either on the road to raise new Asia funds or have completed fundraising in recent months. Hong Kong-based Baring Private Equity Asia, for instance, hit the final close of its seventh fund at its hard cap of $6.5 billion in January. Quadria Capital in March exceeded the target for its second healthcare-focused fund.

CVC struck its debut deal in India only in 2018 when it acquired enterprise legal services firm UnitedLex BPO Pvt Ltd.

The PE firm is also raising a separate $22-billion fund to invest in Europe and America. 

In Asia, the firm is focused on control and partnership investments in core consumer and services sectors. To date, the firm has raised $15 billion of commitments across its Asia Pacific funds. Those funds have completed over 65 investments in a wide range of industries. 

“Our investors can be confident that our deep experience of Asia's markets and broad local office network puts us in a good position to navigate safely through these volatile times, while our strong capital position gives us the ability to take advantage of attractive investment opportunities as they arise,” said Sigit Prasetya, managing partner and head of CVC's private equity activities in Asia. 

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