Europe-based private equity (PE) firm CVC Capital Partners raised a €10.5billion round earlier this year, and have recently closed its fourth Asian fund, which brought in $2billion of what will be an eventual $3.5billion fund, reports Financial News.
CVC are expected to complete their fundraising for this particular fund in the first quarter of 2014, with $200million of the final figure expected to come from internal CVC contributions.
CVC’s last Asian fund raised in excess of $4billion in 2008, while their last European fundraiser in the same year raised €10.75billion by comparison.
Although private equity firms around the world are sitting on record sums of unspent raised capital, as reported by the Financial Times and covered here by Real Deals, it has not proven to be a barrier to industry giants such as CVC continuing to attract investment and raise significant sums.
Part of the reason why CVC remains an attractive proposition for investors is that they have started to focus their investments on specific countries.
In 2013 CVC brought in $1.3billion after a successful exit from Matahari Department Store, an Indonesian retailer, while they no longer have interests in the still strong Indian and Australian markets, preferring instead to focus their efforts in China and the lucrative South East Asian markets.
CVC holds a diverse asset portfolio, investing in a range of businesses and industries including fast food, consultancy, and outsourced management. Expect CVC to continue to be busy in Asia in 2014 as regulations, particularly in China, become less restrictive around PE activity and it becomes easier to invest and also to find suitable exit opportunities.
With reports that the European Parliament could also be about to relax regulations, CVC could also take advantage of significant opportunities in their “home” markets over the next 12 months.