Asian secondary private equity firm TR Capital has secured the first close of its fifth fund at $350 million, representing 70% of the target size of the vehicle, according to an announcement on Tuesday.
TR Capital raised the capital from financial institutions in Asia, Europe, and North America, it said.
“90% of our existing investors have already re-upped in Fund V, demonstrating their faith in the firm, and their belief in the buoyant secondary market in Asia right now,” said Paul Robine, founder and CEO of TR Capital.
Fund V will continue to focus on investments in the technology, healthcare, and consumer sectors.
It has already made its first $150-million investment in a multi-asset continuation fund to acquire a portfolio of three Indian companies from Samara Capital Fund II, including SMT (Sahajanand Medical Technologies), India’s largest manufacturer of minimally invasive cardiovascular devices and supplier of stents; FirstMeridian Business Services, India’s third largest staffing company; and biryani restaurant chain Paradise Food Court.
“We see secondaries as a better way to invest in Asia, as this strategy addresses the DPI [Distributed to Paid-in Capital] issue, which is a common challenge in the region,” Robine continued.
In terms of geographies, he said he is “particularly excited” about Southeast Asia, while seeing a growing number of opportunities in India, as well as mainland China re-opening.
TR Capital also announced a full divestment from Japanese streetwear brand EVISU United Limited through a secondary sale.
The firm’s investment in Evisu came via a restructuring of Hong Kong-based Cassia Investments led by TR Capital’s third fund in September 2018. This resulted in the incorporation of Asia Consumer Holdings (ACH), a new holding company which acquired stakes in two companies, Evisu and Guilin Seamild Foods.
TR Capital III fully exited from Seamild in September 2020. Following the Seamild exit, the entire ACH investment was de-risked, TR Capital said.
Founded in 2007, TR Capital provides liquidity for both secondary direct and fund restructuring transactions, aiming for significant positions. Its current portfolio includes Vietnamese pharmacy group Pharmacity, Chinese freight-trucking platform Full Truck Alliance, Chinese AI services provider Aibee, Yum brands franchisee Sapphire in India, as well as fund assets such as Vietnam Investment Group, and China’s Kinzon Capital, Genesis Capital and Huagai Capital, according to the firm’s website.
TR Capital’s first four funds have over $1.2 billion in capital commitments. Fund IV was closed in early 2021 at $350 million, with co-investment programmes that will bring its total investment pool to about $550 million.
In September 2022, the firm set up its Singapore office to tap more opportunities in the region. Robine told DealStreetAsia at the time that Southeast Asia could soon account for about 20% of TR Capital’s business. With flagship offices in Hong Kong and Singapore, TR Capital also has additional offices and local teams in Shanghai, Shenzhen, and Mumbai.