Private equity firm CVC bags $4.45 billion so far in sixth Asia-focused fund

By Kane Wu

HONG KONG (Reuters) – Europe-based private equity firm CVC Capital Partners has raised over $4.45 billion so far for its new Asia-focused fund, its latest regulatory disclosure showed.

CVC is targeting to raise $6 billion for the fund, its sixth and largest to date for the region, people familiar with the situation told Reuters.

The firm did not disclose when it will finalize the fundraising in the Tuesday filing to the U.S. Securities and Exchange Commission.

Investors in CVC’s new Asia investment vehicle include Canadian Pension Plan Investment Board and The Oregon Public Employees Retirement System, separate public disclosures showed.

A spokesperson for CVC did not immediately respond to a request for comment.

The fundraising comes amid global macroeconomic and geopolitical headwinds, including the Russia-Ukraine war and rising interest rates.

It also comes as global investors have been cautious about deploying capital in China due to an economic slowdown, regulatory crackdown and Sino-U.S. tensions – all of which cast a shadow over Asia funds with a heavier allocation to the country.

U.S. President Biden announced an executive order on Wednesday banning U.S. investments in certain tech sectors in China, in Washington’s latest move to curb China’s technology capabilities.

Total private equity fundraising in Asia has hit $48 billion so far this year via 176 funds, Preqin data showed, compared with $154 billion raised in all of 2022 via 688 funds.

CVC has 12 billion euros ($13 billion) of total assets under management in Asia with 29 active investments, its website shows.

Its portfolio in the region includes clothing brand A Bathing Ape, Indian cricket team Gujarat Titans and funeral services provider Nirvana.

In March, it bought a minority stake in Indonesian gas company Samator Indo Gas from existing shareholders for $155 million. In December, it sold its minority stake in Indonesia’s Garudafood Putra Putri Jaya to U.S-based Hormel Foods Corp (NYSE:).

The firm raised $4.5 billion in its previous Asia fund in 2020.

($1 = 0.9092 euros)