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Asia & Australasia: August 2003

KLM sets up joint venture, Wilshire launches fund of funds in Australia and Sanyo establishes an MBO fund in Japan…

Wilshire Associates to launch fund of funds for Australia
Wilshire Associates is to launch a fund of funds for the Australian market, in the latest move by an international firm to take advantage of legislation intended to entice foreign capital into the country's private equity industry. Legislation passed in 2002 in Australia has allowed for the creation of limited partnerships and funds of funds. It also allows pension funds, which enjoy tax-free status in their own countries, to invest tax-free in Australia.
Financial Times 12.8.03

KLM Capital formalises China JV
KLM Capital has firmed up a joint venture with Bejing's Tsinghua University and Ascendas, a Singapore government-backed group, to launch a new fund called the Global Synertech Fund. Tsinghua and Ascendas will anchor the venture fund, with each investing $6m and KLM committing $2m. The fund is expected to reach $50m. It will focus on later stage offshore companies, including firms based in the US seeking partners in China. Appropriate targets will be joined with one of the Tsinghua companies to form an overseas-domiciled joint venture with the foreign firm.
AVCJ August 2003

Punjab National Bank to launch private equity fund
The Punjab National Bank and Infrastructure Leasing and Financial Services (IL&FS) is to launch a private equity fund that will invest in domestic companies. The Leverage India Fund will target the country's telecom, oil and gas, ports, water supply and surface transport sectors. The fund will invest in between 15 and 20 companies with successful track records of stable and consistent cash flows and will be managed by the venture capital subsidiary of IL&FS. The fund intends to focus on sectors in which India has a ‘global competitive advantage'. The fund aims to address the ‘varying risk appetites of investors' by accepting both equity and mezzanine commitments, according to the India Financial Express.
AltAssets 20.8.03

DAF opts for an Aussie fund of funds
Development Australian Fund has held a first closing for its latest private equity fund of funds, DAF III, at A$300m. The fund plans to invest in 15 to 20 private equity funds in Australia in the next two to four years. The fund has allocated 45 per cent to buy-outs, 35 per cent to expansion capital, 15 per cent for venture capital and five per cent for other investment categories. DAF III is expected to hold a final close at A$400m in September.
AVCJ August 2003

Singapore's Temasek, StanChart launch India-focused fund
Singapore's Temasek Holdings and the private equity arm of Standard Chartered Bank have launched a US$100m India-focused private equity fund. Temasek and Standard Chartered Private Equity have equal ownership of the Merlion India Fund and will manage it jointly, out of Singapore. The fund will provide growth capital for Indian companies that aim to expand their business within India and beyond. The fund will focus on mid to late-stage companies in most growth sectors with the exception of infrastructure, real estate and trading.
Channel News Asia 26.8.03

Sanyo sets up MBO fund
Sanyo Electric Company has become the latest company to make inroads into Japan's mid-sized buy-out market. It has announced that it will establish a Y5bn ($42m) fund that focuses on small and mid-sized manufacturers. The fund will acquire shares in companies with sufficient technological skills, but that are facing an uncertain fate due to other external pressures, such as the lack of a successor. The fund will be a joint venture between Sanyo and Japan Private Equity Company, itself a joint venture between JAIC and the Nippon M&A Centre. The new fund will have an initial capital of Y1.7bn, with Sanyo contributing Y1.5bn. The remaining capital will be raised from third-party sources.
AVCJ August 2003