Monday, December 20, 2010

Northstar Pacific Partners plan to boost investment in resource companies and businesses

TPG Capital and its Indonesian partner, Northstar Pacific Partners, a plan to boost investment in resource companies and businesses can benefit the growth of consumption in the largest economy in Southeast Asia.
Jakarta-based Northstar plans to raise $ 500 million for its third fund, which will be released in the first quarter of next year, Patrick Waluj, co-founder of the firm, said in an interview on 18 December. TPG, led by billionaire David Bonderman, will put money in the fund, to be called Northstar Equity Partners III, Ashish Shastry, head of TPG for Southeast Asia, said in the interview in Singapore.
fourth most populous country is attracting more interest from private equity firms including CVC Capital Partners UK Ltd. and Carlyle Group based in Washington as China and India demand the resources of Indonesia raises prices of raw materials . Consumer confidence has been boosted by political stability under no President Susilo Bambang Yudhoyono, seen since the overthrow of former dictator Suharto in 1998.
"There will be more competition in the future," said Waluj. "We must be aware of what is happening and move faster and be more alert at all times."
Indonesia has a "very important" TPG's investment in Southeast Asia in the future due to the size of the economy, Shastry said. Mexico had in the past represented the bulk of their investments in the region, he said. The company agreed in March to sell its 24 percent stake in Singapore-based Parkway Holdings Ltd., Asia's largest hospital operator.
'Strong Pipeline'
"Internally TPG, we see Indonesia as an important investment destination for us," Shastry said. "We are very optimistic about Indonesia."
TPG and Northstar are still debating how much money the Fort Worth, Texas-based company will invest in the third fund, Shastry said.
"We have a very strong portfolio, some of which we are doing together with TPG and some on our own," said Waluj.
Northstar has generated nearly $ 1.6 billion in capital investments for itself and its partners, including TPG and Government of Singapore Investment Corp., which manages Singapore's reserves, he said.
Northstar TPG and the largest farms in Indonesia are PT Bank Tabungan Pensiun Nasional, originally a lender for retirees, which opened about 500 branches of micro-banking last year. The stock rose to a record earlier this month as the bank's loan growth exceeded the industry of Indonesia from the expansion in micro-loans.
Delta Dunia
Northstar sold its stake in PT Sumber Alfari Trijaya, the company that manages Alfamart convenience stores in Indonesia in November for about $ 200 million, Waluj said. For more than five times the money invested in the company in four years, he said.
TPG and GIC invests in Indonesia last week PT Delta Dunia, which owns the country's coal mining contractor's second largest. TPG and GIC bought non-voting shares in Northstar Tambang Persada Ltd., an investment vehicle that owns 40 percent of Delta Dunia, according to a letter submitted to the Indonesia Stock Exchange on 18 December.
TPG and GIC bought shares of Northstar Tambang Persada of Indonesia Widjaya family, which owns the Sinar Mas Group, and former owners of Delta Dunia, Shastry said. TPG, GIC and Northstar are now the only shareholders in the vehicle, he said.
This is a capital investment of Indonesia's largest private, Shastry said, declining to disclose the value of the transaction. Tambang Northstar participation in Delta Persada Dunia is an approximate value of $ 400 million, based on current market value of the company.
Delta Based on Jakarta Dunia owns PT Bukit Makmur Mandiri Utama, or Buma, the second largest contractor Indonesia coal mining.
Indonesia overtook Australia to become the largest exporter of coal for power plants in 2005, and prices for fuel, set annually, increased 40 percent this year, according to Morgan Stanley.

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