HarbourVest Backs NewQuest Capital Partners to Acquire Portfolio of Asian Private Equity Assets from Bank of America Merrill Lynch
18 April 2011
HarbourVest, as part of a syndicate of secondary buyers, has backed NewQuest Capital Partners. As part of this secondary transaction, NewQuest Asia Fund I, L.P. acquired substantially all of Bank of America Merrill Lynch’s non-real estate private equity portfolio in Asia, and the Bank of America Merrill Lynch Asia private equity team will continue to manage the portfolio as part of NewQuest Capital Partners.
NewQuest Capital Partners Forms NewQuest Asia Fund I, L.P. with Backing from Buyer Syndicate and Acquires Portfolio of Asian Private Equity Assets from Bank of America Merrill Lynch
CHICAGO, HONG KONG and NEW YORK, April 18, 2011 – NewQuest Capital Partners, a newly-established private equity manager, today announced the formation of NewQuest Asia Fund I, L.P. (the “Fund”), a fund focused on investment opportunities in Asia. The fund is backed by a syndicate of limited partners consisting of Paul Capital, HarbourVest Partners, LGT Capital Partners and Axiom Asia. Simultaneously with its formation, the fund acquired substantially all of Bank of America Merrill Lynch’s non-real estate private equity portfolio in Asia. The Bank of America Merrill Lynch Asia private equity team will continue to manage the portfolio as part of NewQuest Capital Partners.
The acquired portfolio consists of over 20 growth-equity and buyout interests primarily in Chinese and Indian companies focused on domestic economies. The Fund will also have capital reserved to make new and follow-on investments with an emphasis on the purchase of direct secondary equity positions in Asia.
The NewQuest Capital Partners private equity team will be led by Darren Massara, as Managing Partner, and Amit Gupta, Bonnie Lo, and Min Lin as Partners – all formerly of Bank of America Merrill Lynch’s Asia private equity team.
“Darren and his partners are one of the most promising teams in the Asian private equity market with deep knowledge and understanding of the region and its growth prospects. They have built a portfolio of assets which we believe has a very attractive profile and we look forward to working with them and our valued partners in the buyer syndicate to maximize the value of these investments for our investors,” said Bryon Sheets, a Partner at Paul Capital.
Darren Massara said, “The partnership with Paul Capital, HarbourVest, LGT Capital Partners and Axiom Asia will allow our team to continue to harvest our existing portfolio on a seamless basis, as well as execute on our unique investment strategy for the Asian market. We look forward to our future as NewQuest Capital Partners.”
“NewQuest Capital Partners has demonstrated an ability not only to build a strong portfolio but also to create substantial value from inherited assets. As an investor in NewQuest Asia Fund I, L.P. we look forward to partnering with the team as it expands this strategy to Asia,” said David Atterbury, a Principal at HarbourVest.
“The establishment of NewQuest Capital Partners is an important milestone in the development of Asia’s private equity market as it is the first transaction of its kind in the region. Building on our history as the first dedicated secondary investment firm to open an office in Hong Kong, we look forward to continuing the development of the region’s secondary private equity market by deepening our relationship with the NewQuest team,” said Jason Sambanju, Managing Director at Paul Capital in Hong Kong.
About NewQuest Capital Partners
NewQuest Capital Partners is a Hong Kong-based private equity firm focused on investing in growth markets across the Asia Pacific region. The firm was established in 2011 from the spin out of Bank of America Merrill Lynch’s Asian Private Equity team and the acquisition of over 20 private equity investments. The NewQuest team has extensive experience in sourcing, executing, managing, and divesting private equity stakes across Asia. For more information, please visit http://www.nqcap.com/.
About the Buyer Syndicate
Founded in 1991, Paul Capital manages US $4.6 billion in capital commitments in its secondary private equity program. The firm has offices in Hong Kong, London, New York, Paris, San Francisco and Sao Paulo. The Paul Secondary funds have completed more than 175 secondary market acquisitions of limited partnership interests and portfolios of direct private equity investments. The secondary team provides customized liquidity solutions for sellers of private equity and has become a trusted partner of sellers from around the world seeking fair value, confidentiality and timely transactions. Please visit http://www.paulcap.com/.
HarbourVest Partners, LLC is an independent global private equity firm that invests in venture capital, buyout, mezzanine debt, and distressed debt through primary partnerships, secondary purchases, and direct investments. Since 1984, HarbourVest has been a leading buyer of private equity assets, acquiring $8 billion of assets in over 350 deals of all stages, types, vintages, and geographies and working with all types of sellers, including financial institutions, corporations, pension plans, governmental entities, endowments, and family offices. This flexibility enables HarbourVest to offer sellers of private equity comprehensive liquidity solutions. Over the years, more than 300 institutional investors throughout the U.S., Canada, Europe, Latin America, and Asia have committed over US$30 billion to funds managed by HarbourVest. To learn more visit http://www.harbourvest.com/.
LGT Capital Partners is a leading fund of funds manager focused on alternative assets for institutional investors. We currently manage USD 21 billion in hedge fund and private equity investments on a global basis. Our team of more than 170 professionals, representing 32 nationalities, is responsible for managing the Castle and Crown alternative investment programs. Headquartered in Pfaeffikon (SZ), Switzerland, the firm has offices in New York, London, Dublin, Hong Kong and Tokyo.
Axiom Asia is an independent private equity fund of funds manager focusing on primary fund investments in buyout, venture capital and growth capital opportunities in the Asia Pacific region. With 11 investment professionals based in Singapore, Axiom Asia has one of the largest and most experienced teams dedicated to private equity fund investing in Asia. An active buyer of Asian secondary interests, Axiom Asia has provided efficient liquidity solutions for global investors across a variety of secondary transactions involving Asian assets, from fund positions to portfolios of direct investments. For more information, please visithttp://www.axiomasia.com/.