Asia-focused Navis explores stapled tender – exclusive

The Malaysian private equity firm is giving LPs in its 2013-vintage, $1.3bn Fund VII an exit option, Secondaries Investor has learned.

Navis Capital Partners is exploring a secondaries process to help raise its latest flagship Asian buyout fund, Secondaries Investor has learned.

Limited Partners in the Kuala Lumpur-headquartered firm’s 2013-vintage Navis Asia Fund VII are being given the opportunity to sell their stakes or continue in the fund, according to three sources familiar with the matter.

The buyer or buyers will make a primary commitment to Navis Asia Fund VIII in a process run by Campbell Lutyens, according to two of the sources. Fund VIII has been in market since June last year targeting $1.75 billion, according to PEI data. It had raised at least $750 million as of May, according to sister publication Private Equity International‘s PEI 300.

Navis Asia Fund VII raised $1.3 billion, against a target of $1.5 billion, by final close in 2014, according to PEI data. Investors include Employee Retirement System of Texas, which committed $125 million, and Employees Provident Fund of Malaysia.

Fund VII achieved its first exit in February last year, according to a press release. The net asset value of Fund VII is “materially higher” than the amount it had raised by final close, a buyside source who has looked at the proposed deal added.

Up-to-date performance data on Fund VII was not available at time of publication.

Remaining assets in Fund VII include Australia and New Zealand-focused education services provider Modern Star and Malaysian food producer The Big Group, according to Navis’s website.

Asia accounted for 10 percent of stakes that sold on the secondaries market by number in the first half of this year, according to advisor Greenhill. Tender offers accounted for 16 percent of all GP-led transactions over the period by value.

Navis and Campbell Lutyens declined to comment.