Minnesota SBI commits $300m to Blackstone’s second Asia PE fund

Photo: REUTERS/Brendan McDermid

The Minnesota State Board of Investments (Minnesota SBI) has approved a $300-million capital commitment to Blackstone Capital Partners Asia II (BCP Asia II), the second Asia-focused private equity fund of US investment Blackstone Group.

Blackstone’s BCP Asia II has a target size of $6 billion and will invest in large-scale control buyouts of growth businesses in India, China, Korea, Japan, Australia, and Southeast Asia.

The firm held a $3.1-billion first close for the fund in April, exceeding the $2.4 billion raised for the first fund in 2018.

The allocation to BCP Asia II was part of the $1.35-billion private markets investment commitment that Minnesota SBI approved during its board meeting on Wednesday, May 26.

The board greenlit commitments to four private equity funds and two real estate funds during the meeting. These include $300 million to KKR MN Partnership, $150 million each to TPG Growth V and TPG TTAD II, and $300 million each to real estate funds CRP IX and BSREP IV, the minutes of the meeting showed.

Minnesota SBI is the state agency responsible for the investment management of various retirement funds, trust funds, and cash accounts. As of December 31, 2019, the market value of all assets was $104.3 billion, according to data on its website.

In February, Minnesota SBI committed $150 million to KKR Asian Fund IV, the fourth Asia-focused buyout fund of global private equity major KKR & Co. It had previously committed $100 million to KKR Asian Fund III and a combined $650 million to the PE firm’s four other vehicles.

Meanwhile, the $3.1-billion first close of BCP Asia II comes as the region attracted $185 billion in PE investments in 2020, up 18.6% year-on-year, according to data compiled by Bain & Company.

In April, PE giant KKR announced the close of its fourth Asia fund at $15 billion, the largest ever in the region, while Carlyle Group, another PE major, is in the market for a new Asia-focused fund.

The Washington State Investment Board (WSIB) also approved an up to $250 million commitment BCP Asia II in April.

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.