CVC Capital caps Asia IV fund at $3.5 bln

Firm: CVC Capital Partners Ltd

Fund: CVC Capital Partners Asia Pacific IV LP

Amount Raised: $3.5 billion

London-headquartered CVC raised $3.3 billion from investors for its fourth Asia fund and will add $200 million from its partners for a total of $3.5 billion, a source familiar with the matter told sister news service Reuters.

The fund is 15 percent smaller than the firm’s previous Asia fund of $4.12 billion raised in 2008. That fund suffered from the impact of CVC’s $1.8 billion loss on its investment in Nine Entertainment Co in Australia, Asia’s biggest ever private equity loss.

CVC pulled out of investing in Australia, Asia’s biggest buyout market, because of that deal, and was expected to raise a smaller fund when it came back to the market, Reuters previously reported.

CVC said the new fund intends to invest in businesses benefiting from consumer affluence and domestic demand in Greater China, Southeast Asia and Japan and South Korea.

The firm’s recent focus has been on Southeast Asia and Greater China, with investments including the $1.7 billion buyout of QSR Brands and KFC Holdings through a consortium in Malaysia, and the acquisition of large stakes in restaurant chain South Beauty and education company EIC Group in China.

CVC also recently agreed to buy South Korea’s KFC franchise from a subsidiary of Doosan Co Ltd for $98 million.

Stephen Aldred is a correspondent for Reuters in Hong Kong.