When it set about to raise its third commingled fund last year, Asia Alternatives LLC also gave investors the option to invest in separate accounts.
Earlier this month, the Asia-focused private equity fund-of-funds firm closed on about $1.5 billion in total capital — $908 million in Asia Alternatives Capital Partners III and $607 million in separate accounts, said Melissa Ma, co-founder and managing director.
Unlike some other separately managed account relationships, Asia Alternatives' version has the same fee structure and invests in mostly the same private equity funds as the commingled fund of funds, Ms. Ma said.
Allowing investors the option to invest in a separate account or Asia Alternatives' commingled fund gave the firm the ability to ensure it met the needs of investors with special requirements. Following the worldwide economic meltdown, investors began to incorporate new investment requirements and rules governing the use of placement agents, she explained.
Asia Alternatives Capital Partners III is the first fund the San Francisco-based firm raised since it closed its second fund at $950 million in September 2008, days before Lehman Brothers Holdings collapsed.