Asia Alternatives, a private equity fund of funds, has announced the final close of Asia Alternatives Capital Partners VI (AACP VI) and related funds with US$2 billion in new commitments.
The funds are focused on building a diversified private equity portfolio with an emphasis on top-performing local Asian fund managers. Over 85% of committed capital came from pre-existing relationships.
The largest of the funds is AACP VI, which, along with its parallel funds, closed on US$1.1 billion of committed capital, exceeding their combined target of US$1 billion.
AACP VI is the successor fund to AACP 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 closed in May 2007.
“Our relationships with leading private equity and venture capital managers across Asia allow us to be exceptionally selective in deploying capital and grant our [limited partners] access to the attractive opportunities in each region,” says Rebecca Xu, co-founder and managing director of Asia Alternatives.
“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.”
Managing director Akihiko Yasuda adds: “We have remained focused on expanding our relationships and expertise across Asia, utilizing our local presence to gain access to opportunities within different markets and strategies. While China continues to be our largest single country exposure, our partnerships with buyout firms in Japan have also become significant sources of performance in recent years.”
Investors in the 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 other parts of Asia.
Institutional investors across the funds include The Boeing Company, Cathay Life Insurance, Comprehensive Financial Management, Dai-ichi Life Insurance, Florida State Board of Administration, Intermountain Healthcare, Jasper Ridge Partners, Maryland State Retirement and Pension System, Massachusetts Mutual Life Insurance Company, McKnight Foundation, 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 earlier received the first Qualified Foreign Limited Partner licence in China, which allowed the fund to invest in selected, qualified yuan-denominated private equity investments. The firm has about US$16.5 billion in regulatory assets under management.