HK-based PAG gathers $6b for third Asia buyout fund

Hong Kong

Hong Kong-based alternative investment firm PAG has closed its third Asia-focused private equity buyout fund at $6 billion, after being oversubscribed. The vehicle will start deploying in the region as early as this year.

The fund, which has been in the market since June this year, held only one closing last week, an announcement from PAG said on Monday.

The close comes less than three years after the close of its predecessor, PAG Asia Fund II, which is fully invested. The third fund will follow the same strategy as its predecessor funds, PAG Asia II, which closed in December 2015 at $3.6 billion, and PAG Asia I, which closed in September 2012 at $2.5 billion. The fund series invests in major markets in Asia with a focus on buyout situations.

“The strong interest in our Asia-focused buyout fund indicates the trust our investors have placed in us. We will continue our focus on delivering solid returns to our investors,” PAG chairman and CEO Weijian Shan said.

The new fund, according to a report from FT, has been largely raised from US pension funds and has also received the backing of sovereign wealth funds from Kuwait and Singapore.

PAG, an Asia-focused investor that manages $30 billion in capital, has funds under management across private equity, real estate and absolute return strategies. It operates in multiple markets including Australia, China, India, Japan, South Korea and Southeast Asia.

Its two other investment strategies include real estate and absolute returns. While PAG Real Estate has invested over $21 billion in more than 6,500 properties across the region, the absolute return business currently manages in excess of $5.5 billion and has invested over $7 billion within the past 10 years.

The firm was in news earlier this year when it made an over $700-million bid for Spring Reit. Among its other investments in the recent period were China’s dating and matchmaking business Zhenai and Chinese producer of industrial gases Yingde Gases.

With a multi-billion dollar fund now, PAG lines up itself among the list of other global and regional private equity players that have raised large vehicles to be deployed in Asia. At the end of the third quarter this year, six out of the world’s 10 largest private equity funds were Asia-focused funds, according to a report by Preqin.

Recently, Hillhouse Capital raised its Hillhouse Fund IV at a $10.6-billion hard cap, in Asia’s biggest private equity fundraising, exceeding the $9.3-billion KKR Asian Fund III.

Earlier this month, it was reported that global private equity firm Bain Capital LLC is expecting to hold a first and final close for its $3.5-billion Asia-focused fund in December.

Also Read:

Bain Capital to hit final close of $3.5b fourth Asia fund in December

KKR to raise $1.5-2b for maiden Asia-focused infrastructure fund

Morgan Stanley raises $440m for debut Thailand PE fund

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.