Affinity Equity Partners
Encyclopedia
Affinity Equity Partners is one of the largest dedicated Asian private equity
firms and focuses on leveraged buyout
and growth capital
transactions. Affinity invests primarily in companies that produce consumer-related goods and services as well value-added manufacturing, healthcare, financial services, and business services companies.
Affinity typically invests in companies based in the Asia Pacific region with a focus on Australia
, Greater China
, Hong Kong
, Japan
, Korea
, Singapore
and Taiwan
.
Affinity was founded by Kok-Yew (K.Y.) Tang and David Lai in 2002 The firm is headquartered in Hong Kong
with offices in Seoul, South Korea, Singapore
and Sydney, Australia.
David Lai left Affinity in 2009. Meantime, some of the portfolio companies, including First Engineering and Jaya Holdings, had reported severe liquidity and cashflow issues.
in the mid-1990s. Affinity, founded in 2002, was originally known as UBS Capital Asia Pacific to serve as the Asian private equity arm of UBS AG
. UBS Capital Asia Pacific was spun out as an independent firm in March 2004. In 2004, Affinity raised its first independent private equity fund, Affinity Asia Pacific Fund II, with $700 million of investor commitments. In 2007, Affinity raised its next fund Affinity Asia Pacific Fund III with $2.8 billion of investor commitments, which was the largest private equity fund raised to that point in Asia.
Among Affinity's notable investments are the following:
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firms and focuses on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
and growth capital
Growth capital
Growth capital is a type of private equity investment, most often a minority investment, in relatively mature companies that are looking for capital to expand or restructure operations, enter new markets or finance a significant acquisition without a change of control of the business.Companies...
transactions. Affinity invests primarily in companies that produce consumer-related goods and services as well value-added manufacturing, healthcare, financial services, and business services companies.
Affinity typically invests in companies based in the Asia Pacific region with a focus on Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
, Greater China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
, Korea
Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...
.
Affinity was founded by Kok-Yew (K.Y.) Tang and David Lai in 2002 The firm is headquartered in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
with offices in Seoul, South Korea, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
and Sydney, Australia.
David Lai left Affinity in 2009. Meantime, some of the portfolio companies, including First Engineering and Jaya Holdings, had reported severe liquidity and cashflow issues.
History
The two founders of Affinity, K.Y. Tang and David Lai, joined UBS CapitalUBS AG
UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
in the mid-1990s. Affinity, founded in 2002, was originally known as UBS Capital Asia Pacific to serve as the Asian private equity arm of UBS AG
UBS AG
UBS AG is a Swiss global financial services company headquartered in Basel and Zürich, Switzerland, which provides investment banking, asset management, and wealth management services for private, corporate, and institutional clients worldwide, as well as retail clients in Switzerland...
. UBS Capital Asia Pacific was spun out as an independent firm in March 2004. In 2004, Affinity raised its first independent private equity fund, Affinity Asia Pacific Fund II, with $700 million of investor commitments. In 2007, Affinity raised its next fund Affinity Asia Pacific Fund III with $2.8 billion of investor commitments, which was the largest private equity fund raised to that point in Asia.
Among Affinity's notable investments are the following:
- Colorado Group LimitedColorado Group LimitedColorado Group Limited is an Australian public company that operates a number of retail clothing chains. Major brands include Colorado Adventurewear, Mathers, Williams the Shoemen, JAG, Diana Ferrari, and Pairs. The company is based in Brisbane, Queensland with an office in Cremorne, Victoria...
– an Australian company that operates a chain of clothing retailers acquired by Affinity in a hostile takeover in 2006.
- Hi-MartHi-MartHi-Mart is a South Korean online shopping mall and chain of electronics stores. It was founded in 1993 by Seon Jong Koo as "Hi" and "Mart", parts of a larger personal site. Originally, the site belonged to an electronic credit retail group. Hi-Mart is headquartered in Seoul....
- a South Korean online shopping mall and chain of electronics stores acquired by Affinity, together with Temasek HoldingsTemasek HoldingsTemasek Holdings is an investment company owned by the government of Singapore. With an international staff of 380 people, it manages a portfolio of about S$193 billion at end of March 2011, focused primarily in Asia...
in 2005 and sold in 2008.
- Jaya Holdings – Affinity acquired a minority interest in Jaya, a Singapore-based offshore shipping and shipbuilding company, in 2006
- Mando Corporation - a Korean automotive parts manufacturer acquired by Affinity, together with CCMP Capital AsiaCCMP CapitalCCMP Capital is a private equity investment firm that focuses on leveraged buyout and growth capital transactions. Formerly known as JP Morgan Partners, the investment professionals of JP Morgan Partners separated from JPMorgan Chase on July 31, 2006. CCMP has invested approximately $12 billion...
in 2000 and sold in January 2008