Private equity firm Asia Alternatives said on Wednesday it has raised more than $1.5 billion in new funds to invest into fund managers across Asia, with around 75 percent of its existing investors committing to the new funds, underlining the continuing appetite for Asia growth.
Asia Alternatives, a fund of funds that invests capital in private equity fund managers, invests in Greater China, Japan, Korea, Southeast Asia, India and Australia, and across buyout, growth, venture capital and special situations funds.
Co-founder and managing partner Melissa Ma said in an interview that the firm is predominantly North Asia focused, and plans to maintain its strategy of investing in domestic consumption-focused funds, which has proved more recession resilient.
"Our portfolio is very heavily weighed in that direction, so our managers tend to be investing in more the local consumption sectors," Ma said.
The firm has already invested in 36 managers in Asia, including China's Hony Capital, CDH and CITIC Private Equity and Asia fund RRJ Capital.
Investors in the Asia Alternatives funds include state and corporate pension funds and insurance companies in the United States, Europe, Canada and Asia, including Church Pension Fund, Massachusetts Mutual Life Insurance Co, Oak Hill Investment Management and Pennsylvania State Employees Retirement System.
Asia Alternatives was the first limited partner to receive a Qualified Foreign Limited Partner licence in China, which allows it to convert U.S. dollars to invest in qualified RMB funds.
The largest of the new funds is Asia Alternatives Capital Partners III, LP, which closed above its target of $800 million, at $908 million of committed capital. The other fund vehicles totalled approximately $600 million.
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