Asia Alternatives Management closed on a total of $1.8 billion, composed of the $1.5 billion private equity fund-of-funds Asia Alternatives Capital Partners V and discretionary separate accounts, said Melissa Ma, co-founder and managing partner.
The fund will continue to invest in Asia-focused buyout, direct co-investments and special situations funds. Asia Alternatives closed on a combined $1.8 billion in 2015, composed of Asia Alternatives Capital Partners IV and its related separately managed accounts.
"The reason for holding (the fund size at) about flat is something I learned from Warren Hellman (the late co-founder of private equity firm Hellman & Friedman) when I was a young investor," Ms. Ma said. "It's not about what we can raise but what we can invest. ... We believe you have to be disciplined in this market."
Some 85% of the limited partners in the newest fund had invested with Asia Alternatives in the past, she said. "We had very strong support from investors and because of our longevity and returns, we've had a lot of demand from new investors," Ms. Ma said. "Our funds have performed at or above the top quartile of the Asia private equity benchmark."
Investors in the fund include the $27.5 billion Pennsylvania State Employees' Retirement System, Harrisburg; $23 billion San Francisco City & County Employees' Retirement System; $661 endowment of the Oklahoma State Regents for Higher Education, Oklahoma City; and the $472 million endowment pool of the University of Vermont and State Agricultural College, Burlington.
