Affinity Raises Fund for Buyouts

HONG KONG – Affinity Equity Partners, a Pan-Asia Pacific venture firm, recently completed raising its second buyout fund, AC Fund II.

At $700 million, AC Fund II is one of the largest buyout funds in the region, alongside those managed by Schroder Capital Partners, The Carlyle Group, Newbridge Capital and Baring Private Equity.

Including the firm’s first fund, Affinity now manages more then $1.1 billion in assets across Asia.

The firm has offices in Hong Kong, Seoul, Singapore and Sydney.

K.Y. Tang co-founded Affinity along with David Lai, as a management buyout from UBS Capital Corp.

UBS is an LP in the new fund, but Affinity officials declined to say who else invested in the $700 million vehicle.

Tang says that Affinity is well positioned become one of the region’s largest investors. Affinity is not a sector-focused acquirer of businesses. Instead, it makes investments or acquisitions when the value propositions offered by sellers are good, he says.

Affinity does not invest in distressed or turn-around situations. The firm also avoids investing in emerging or growth economies, preferring instead to invest in countries such as Australia, Korea, Japan or other nations with healthy economies.

Tang, who was born in Malaysia and remains a Malaysian citizen, says that despite his origin and familiarity with Southeast Asia, most of the firm’s work to date has been in North Asia, with two exceptions: the acquisition of National Semiconductor’s test business in Thailand and the acquisition of Singapore-based SDL Leasing, which was sold to GE Capital in under a year for a 3-times return on invested capital, Tang says.