Asia Alternatives confirms Fund V close

The San Francisco-based fund of funds manager will invest the bulk of capital in Asia-focused funds, while maintaining capital to make co-investments or secondaries transactions.

Asia Alternatives Management has held the final close on its fifth fund of funds raising $1.8 billion across its main fund and separate pockets, two weeks after sister publication Private Equity International reported the firm was eyeing an October close.

The San Francisco-headquartered fund of funds exceeded its combined $1.3 billion capital raising target for Asia Alternatives Capital Partners V, amassing $1.5 billion for the vehicle and $300 million in sidecar vehicles and discretionary separate accounts, according to a statement.

The firm will allocate up to 85 percent of the capital to fund commitments and up to 30 percent for direct co-investments and secondaries purchases of fund commitments, according to documents from Minnesota State Board of Investment.

About 85 percent of the commitments came from the firm’s existing investors. Institutional investors in the fund are a mix of public and corporate pensions and insurance companies including Cathay Life Insurance, Florida State Board of Administration, Massachusetts Mutual Life Insurance Company and Minnesota State Board of Investment.

The firm began fundraising for AACP V in June and collected $1.35 billion from more than 160 investors, as indicated in three separate US Securities and Exchange Commission filings dated 13 July.

The firm will follow the same strategy as its predecessor funds, AACP IV and sidecar vehicles, which gathered $1.8 billion in April 2015. Capital from the fund will be invested across managers in Greater China, Japan, South Korea, India, South-East Asia and Australia.

Asia Alternatives has previously backed MBK Partners, CDH Investments and Northstar Group, according to PEI data. Ark Totan Alternative, Eaton Partners and Roam Capital acted as placement agents for Asia Alternatives. Pillsbury Winthrop Shaw Pittman served as legal counsel.