HK-based alternative investor PAG closes Asia Loan Fund IV at $1.5b

Asia-focused independent alternative investment firm PAG has reached the final close of its latest private debt fund, PAG Asia Loan Fund IV, at a hard-cap of $1.5 billion, according to a source with direct information on the matter.

The news was first reported by Private Debt Investor earlier this week. DealStreetAsia independently confirmed the fund close from a source, who requested anonymity because the information is not public.

PAG Asia Loan Fund IV, which was learnt to initially target a corpus of about $1 billion, is part of PAG’s private debt strategy that seeks to offer tailored financing solutions to corporates across the Asia-Pacific region.

Its direct lending funds provide asset-backed loans, mezzanine loans, mortgages, pre-IPO financing, share-backed loans and other financing options with terms ranging from three months to seven years, according to information on its website.

The State Board of Administration (SBA) of Florida, which mainly manages assets of the Florida Retirement System (FRS) Trust Fund, made a $150-million capital commitment to PAG Asia Loan Fund IV, Florida’s SBA disclosed in early August.

PAG’s investor roster also includes the San Francisco Employees’ Retirement System (SFERS), which approved an allocation of $100 million to the new vehicle in November 2019. The U.S. pension fund had invested $50 million to the predecessor fund, PAG Asia Loan Fund III.

PAG held a final close for PAG Asia Loan Fund III at a hard-cap of $950 million in May 2018. Launched in 2017, the third fund first sought to raise $750 million in total and was significantly oversubscribed by investors including sovereign wealth funds and pension funds in North America, Australia and Asia.

The firm garnered over $800 million for its second loan fund in 2014, again exceeding an original target of $750 million.

With $40 billion in assets under management (AUM), PAG is one of the world’s largest Asia-focused private investment firms. It has a team of over 200 investment professionals across 11 offices in Asia and worldwide, managing capital on behalf of more than 150 institutional investors from Europe, North America, Asia and the Middle East, according to official statistics dated August 27, 2020.

Apart from private debt, PAG also specialises in real estate strategies and private equity investments in the fields of consumer, healthcare, business services, financial services and more.

Last week, the firm announced a strategic investment of ₹2,200 crores ($300 million) in Edelweiss Wealth Management (EWM) for a 51 per cent stake in the wealth management business of Edelweiss Group. The deal, which would see PAG become a majority owner of EWM, was expected to close after customary regulatory approvals.

It was also understood to have inked a deal to sell all its stake in South Korean toymaker Young Toys to a consortium consisted of education group Mirae-N, as well as PE firms Nvestor and Corstone Asia. According to Koreaninvestors.com, the transaction would reach 150 billion won ($127 million).

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.