TPG-backed Northstar plans around $1 bln buyout fund for SE Asia

September 30, 2013

HONG KONG, Sept 30 (Reuters) - TPG Capital -backed Indonesian private equity firm Northstar Group is seeking to raise around $1 billion in a new fund to invest in Southeast Asia, people familiar with the matter told Reuters.

Northstar, established in Indonesia in 2003, is one of Southeast Asia's home-grown buyout firms and is facing rising competition from global rivals like KKR & Co and Blackstone Group, both of which have moved teams into the region in the last year.

Northstar is still finalising details of the new fund after its recent annual general meeting in Jakarta. It is betting that its track record in the region will help it raise more than its last fund of $820 million.

Southeast Asia, home to about 600 million people, is seeing a rise in its consumer class on the back of strong economic growth, attracting more buyout firms to the region. Recent successful exits by CVC Capital and TPG from their Southeast Asia investments are increasing private equity activity in the region.

TPG owns around 20 percent of Northstar Group, while Northstar owns around a 5 percent stake in TPG.

Northstar declined to comment on its fund-raising plans. The people familiar with the matter declined to be identified as the fund-raising plans were private.