NEW YORK--()--The Rohatyn Group ("TRG"), a private investment firm focused on emerging markets, announced today a definitive agreement with the CIMB Group (“CIMB”) to acquire a 60 percent stake in CapAsia, a Singapore-based mid-market infrastructure private equity firm focused exclusively on non-BRIC Emerging Asia. CapAsia in total has raised over USD 500 million in capital commitments and has more than USD 400 million in assets under management.
Founded in 2006 by CIMB and Standard Bank of South Africa, CapAsia has over 18 investment professionals and offices in Singapore, Kuala Lumpur, Jakarta, and Bangkok and manages three infrastructure investment vehicles, one of which is Shari’ah compliant. TRG will acquire 60 percent of the general partner interest in some of these funds as part of the transaction.
The Malaysian-based CIMB, Southeast Asia's fifth largest bank by market capitalization, became CapAsia's sole shareholder when it acquired Standard Bank's interest in CapAsia in 2011. Upon closing of the transaction with TRG, CIMB will own 40 percent of CapAsia and will continue to be supportive of the firm's operational and growth initiatives.
The CapAsia transaction marks the continuation of TRG's growth strategy in Asia. In 2011, TRG acquired 50 percent of ARCH Capital, a Hong Kong-headquartered Asian focused private equity real estate firm, from the Ayala Group of the Philippines. Additionally, TRG continues to have a strong presence in liquid emerging markets asset management products.
Nicolas Rohatyn, Chief Executive Officer and Chief Investment Officer of TRG, said, "The CapAsia transaction builds on TRG’s strategy to grow our private investing business in Asia in infrastructure and real estate and well complements our 2011 investment in ARCH Capital. CapAsia provides a unique and leading investment platform in this attractive and fast growing region and enables us to partner with CIMB, which has extensive reach and deep sector expertise. The CapAsia team, led by Johan Bastin, boasts unmatched local industry knowledge and relationships through a proven senior leadership that has consistently grown its business across a number of important and underserved regions, and we welcome them to the TRG team.”
Nazir Razak, CIMB Chief Executive Officer, said, “The Rohatyn Group is a leading investment management firm that brings the right strategies, perspective and global platform to support the continued growth of CapAsia. We are excited about this transaction and are confident that with the support of TRG and CIMB, the CapAsia team is very well positioned to maximize its opportunities.”
Johan Bastin, CapAsia Chief Executive Officer, said, “The commitment to CapAsia by The Rohatyn Group and CIMB is a strong endorsement of CapAsia’s strength and growth potential. By combining TRG's standing in alternative asset management, CIMB's unparalleled presence in our core markets and our deep expertise and distinct approach to infrastructure investment management, CapAsia has further strengthened the foundations for sustainable expansion and excellence in delivering value to its investors. CapAsia's singular geographic coverage, on the ground presence in key markets and mid-market focus provide unique advantages to its investments. We look forward to working with TRG and further deepening our relationship with CIMB."
Terms of the transaction were not disclosed. The transaction is expected to close by the end of the first quarter of 2012 in accordance with customary closing conditions.
Founded in 2003, The Rohatyn Group is a leading emerging markets asset management firm with offices in New York, Singapore, Hong Kong, London, Buenos Aires, Lima, Montevideo, and São Paulo.
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