Private equity fund-of-funds Asia Alternatives raises $1.8B for its fourth fund

Asia Alternatives Management LLC, one of the largest independent Asian private equity fund-of-funds, has raised over $1.8 billion for its fourth fund named Asia Alternatives Capital Partners IV, L.P., along with its related fund vehicles, it said.

The new fund represents an increase of 20 per cent over the last announced fund in August 2012.

Nearly 80 per cent of the backers of the new fund were existing investors, which include Cathay Life Insurance Co, Florida State Board of Administration, Massachusetts Mutual Life Insurance Company, New York State Common Retirement Fund, San Francisco City and County Employees' Retirement System, Teachers' Retirement System of the State of Illinois, University of Missouri, University of Vermont and Virginia Retirement System.

The firm invests in Greater China, Japan, Korea, South East Asia, India and Australia and across buyout, growth, venture capital and special situations funds.

In India, the fund-of-funds has backed PE firms such as CX Partners, ChrysCapital and Tano Capital.

Melissa Ma, co-founder and managing director of Asia Alternatives, said: “Portfolio construction is a critical focus at Asia Alternatives, as we seek risk diversification across geographies, strategies and managers that we actively monitor. The opportunity set for Asia private equity is continuously evolving and we intend to capitalise on those investments that provide the best risk-adjusted returns.”

Founded in 2005 by Ma, Laure Wang and Rebecca Xu, Asia Alternatives has over $6.5 billion assets under management. Since its inception, it has invested in over 40 managers in Asia. The firm currently has 36 professionals across offices in Hong Kong, Beijing, Shanghai and San Francisco.

The firm had received the first Limited Partner QFLP (Qualified Foreign Limited Partner) licence in China, which allowed it to invest in select, qualified RMB-denominated private equity investments.

While Eaton Partners, LLC acted as exclusive placement agent for Asia Alternatives, Pillsbury Winthrop Shaw Pittman LLP served as legal counsel, for the new fund.

(Edited by Joby Puthuparampil Johnson)

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