At a hard maximum of USD 350 million, TR Capital concluded its fourth Asia secondaries fund in early 2021. Prior to the COVID-19 pandemic, the majority of the funding was provided. After pausing fundraising, it resumed right when the post-pandemic recovery was beginning. No such break was provided to Fund V, as the marketing campaign was launched at the same time as difficulties in one of the company’s main markets and a decline in fundraising from Asia.
Despite not reaching its USD 500 million to USD 600 million goal, TR produced more than the previous vintage. With USD 401 million in pledges and a 92% re-up rate from current LPs, a final close occurred at the end of June. Co-investors contributed USD 150 million to Fund IV.
According to TR’s CEO, Paul Robine, the company is expected to reach USD 200 million in the Fund V cycle, with a significant amount already committed as part of a formal program. Asia, the US and Canada, Europe, and the Middle East make up a comparatively equal portion of the LP base. Acknowledging the wider change in fundraising dynamics, TR concentrated on building relationships with investors in South Korea, Japan, and the Middle East.
TR was touting technology investments in China as recently as mid-2021, having opened an office in Shenzhen to facilitate easier access to the local start-up scene. After about a year, the company set up shop in Singapore, as demand for secondaries in Southeast Asia increased as things in China became more challenging. With the addition of a second India base in New Delhi last year, the number of Asian offices reached six.
The last deal that TR closed in China was two years ago. According to Robine, the company is waiting to see how the exit environment develops before making any decisions about the market. Fund V’s key points will be South Korea, Japan, Indonesia, Vietnam, Singapore, and India. The company is also open to situations wherein it might assist Asian enterprises in expanding internationally.