FUNDRAISING NEWS | November 25, 2024
Singapore-based CapitaLand Investment (CLI) announced the strategic acquisition of a 40% stake in SC Capital Partners Group for $214M in a multi-phase deal that will strengthen its foothold in the Japanese market and marks a significant step in its plans for geographical expansion.
CEO Lee Chee Koon revealed at CLI’s recent investor day that the firm intends to expand its reach within and beyond the Asia Pacific region into developed markets such as Japan, Korea, Australia, and Europe, with the United States also on its radar. To accelerate this expansion, CLI will leverage M&A, starting with the SC Capital deal. The full acquisition is expected to be completed within five years, with CLI acquiring the remaining stake in phases.
As part of the deal, CLI will inject a minimum of $400M in strategic capital into SC Capital’s platform growth fund. Upon completion, CLI expects an $800M increase in its funds under management (FUM). The acquisition will significantly bolster CLI’s presence in Japan, with its FUM in the region tripling to S$11B, raising its contribution to 10% of the combined S$113B FUM of CLI and SC Capital.
The acquisition is a piece of CLI’s broader strategy to diversify its portfolio. The firm aims to double its FUM to $200B by 2028, with an operating earnings target of over $1B between 2028 and 2030. CLI plans to achieve these goals through M&A, new listings, fund expansions, and the growth of its REITs platform, particularly in the Asia Pacific region.
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