Newbridge Closes Second Asian Fund

Newbridge Capital Group of San Francisco held a final close July 23 on its second Asian-focused partnership, the $392 million Newbridge Asia II LP.

Newbridge had held the first close on the fund in May 1998, raising $145 million from existing limited partners, including GE Capital and Metropolitan Life. The firm did not begin marketing the fund to potential new limited partners until September 1998. In all, Newbridge II received commitments from 18 institutional and seven family/individual investment entities. Miami Valley Equipment is the only new limited partner disclosed by the firm.

While the $105 million Newbridge Asia I, the firm’s first Asian fund which closed in October 1995, the firm’s first Asian-focused fund, allocated most of its investments to companies based in China, Managing Partner Don Carroll said Newbridge II will invest in companies based in Southeast Asia, Japan, Korea, Taiwan and Hong Kong, while avoiding China.

“We began investing in China in 1994, with the view that it was a valuable opportunity, but the whole world inverted in 1997,” he said. “We have found that opportunities elsewhere in Asia have become more interesting than what is in China since the crises began.”

Newbridge makes control investments of between $30 million and $50 million with local partners, and the firm prefers to co-invest with its limited partners on deals that exceed $50 million in equity commitments. To date, Newbridge II has committed approximately $69 million. Last fall, the firm invested in Batam Island, Indonesia-based semiconductor contractor P.T. Astra Microtronics Technology and Hong Kong real estate company Kerry Properties Ltd.

Carroll said the firm most likely will not begin to raise a third Asian fund for at least 24 months.

In a related story, Carroll said Newbridge’s much prolonged acquisition of a 51% ownership stake in Korea First Bank will likely be finalized in the next few weeks.