NewQuest Capital Partners raises $1 billion for its 4th fund

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Published: November 19, 2019 4:19:25 AM

The investors in the fund include endowment funds, pension funds, sovereign funds, insurers, financial institutions and family offices across Asia, North America, Europe and the West Asia.

NewQuest, NewQuest Capital Partner, NewQuest fund, industry news, sme, NQCP The closure of the latest fund comes on the back of NewQuest’s prior fund, NewQuest Asia Fund III, being fully deployed.

NewQuest Capital Partners (NQCP) has announced the final close of its fourth dedicated secondary fund, NewQuest Asia Fund IV, having secured $1 billion in total commitments. NQCP said it has surpassed its initial target of $850 million. NQCP is a private equity (PE) firm that specialises in providing alternative liquidity solutions to PE asset owners

The investors in the fund include endowment funds, pension funds, sovereign funds, insurers, financial institutions and family offices across Asia, North America, Europe and the West Asia. The closure of the latest fund comes on the back of NewQuest’s prior fund, NewQuest Asia Fund III, being fully deployed.

NQCP is a secondary PE platform focused on the Asia-Pacific region that specialises in providing alternative liquidity solutions to PE asset owners, such as financial institutions, corporations, family offices, hedge funds and PE funds. The firm was established in 2011 from the spin-out of Bank of America-Merrill Lynch’s Asian PE team. It manages four funds with capital commitments of over $2.4 billion.
NQCP also announced the appointment of Nitin Agarwal as managing director, based in its Mumbai office.

NQCP managing partner Darren Massara indicated that the firm’s India business was a key component of its overall strategy, having led transactions amounting to over $350 million in the past two years.

According to the firm’s website, NQCP focuses on two types of secondary transactions. One where NQCP is able to acquire direct positions in underlying companies from direct PE investors on either a portfolio or single-asset basis through a single transaction. NQCP then steps in the shoes of exiting investor and works closely with company management to assist in executing strategic growth and monetisation plans.

The second type of transaction that the firm focuses is where it partners with incumbent PE managers to restructure existing funds or sponsor spin-out captive teams.

NQCP indicated the latest fund’s close coincides with a continued, robust increase in demand for alternative liquidity solutions for PE investments across Asia. “In addition, complex portfolio transactions, such as fund restructurings and spin-outs, an area in which NQCP also specialises, have become more prominent in the region,” it said.

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