Maryland pension fund commits over $200m to Asia-focused PE funds

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Maryland State Retirement & Pension System (Maryland) has committed about $205 million to Asia-focused vehicles in the fourth quarter of 2018, as confirmed by the pension fund to DEALSTREETASIA.

The fund put in some $100 million into Bain Capital’s fourth Asia fund, Bain Capital Asia Fund IV. The fund is said to have closed last December at $4.65 billion, according to a Reuters report. The fund’s predecessor raised $3 billion in 2016 and saw a 60.9 per cent internal rate of return by June 2018, said a public investment memorandum of Pennsylvania Public School Employees’ Retirement System (PSERS), one of the fund’s LPs.

Besides Bain Capital, Maryland also committed $75 million into Hong Kong-based PAG’s third Asia buyout fund, PAG Asia III. The fund was closed last November at $6 billion after it was oversubscribed.

Another Asia-focused fund, India-based ChrysCapital has received $30 million worth of commitments from Maryland for its seventh fund. The firm has recently closed its eighth fund at $850 million, bringing its total AUM to more than $4 billion.

ChrysCapital is also backed by New York State Teachers’ Retirement System, which committed $75 million into the firm’s eighth fund.

As Western pension funds are turning to Asia for private equity investments, most of them have chosen to go with global firms that have track record in Asia-focused investments.

For instance, this is not the first time that PAG has received backing from US pension funds. PAG Asia III has received commitments from San Francisco Employees Retirement System (SFERS), which approved a $50 million check for the fund.

Another US pension fund California Public Employees’ Retirement System (CalPERS) has also committed $380 million to PAG Asia III. PAG is currently on the road to raise up to $1 billion for its third special situations fund, backed by Texas Permanent School Fund, which agreed to make a capital commitment of up to $75 million to the fund.

Similarly, CalPERS has also backed global PE firm TPG’s latest Asian fund, TPG Capital Asia VII, with a commitment of $300 million. The fund held its final close at $4.6 billion last week two years after securing its first commitment – a $100 million check from the New Mexico State Investment Council (SIC) — in January 2017.

Besides SIC and CalPERS, other US pension funds that have committed to TPG Asia VII include the Employees Retirement System of Texas ($100 million) and the Teacher Retirement System of Texas ($150 million).

Hong Kong-based Baring Private Equity Asia, which is raising up to $6 billion for its seventh fund, has achieved a first close at $4.5 billion. The fund received the backing of Texas Employees Retirement System ($15 million), Los Angeles Fire & Police Pension System ($25 million) and Los Angeles City Employees’ Retirement System.

Also read:

Oregon pension fund seeks to increase PE exposure to Asia

New York pension fund commits $64m to two Chinese PE funds

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.