Employees Retirement System of Texas commits $50m to BPEA’s eighth buyout fund

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The Employees Retirement System of Texas (ERS) has made a $50 million commitment to Baring Private Equity Asia’s (BPEA) $8.5 billion eighth buyout fund, according to disclosures seen by DealStreetAsia.

The ERS joins several other institutional investors that have made commitments to the fund — Illinois Municipal Retirement Fund ($100 million), the Teacher Retirement System of Texas ($150 million), and Louisiana State Employees’ Retirement System ($100 million).

The Employees Retirement System of Rhode Island (ERSRI) is also planning to commit $50 million to the vehicle.

BPEA meanwhile intends to make a general partner (GP) commitment of at least 2.5% of the aggregate capital commitments to the fund.

Baring Asia Private Equity Fund VIII LP will allocate up to 10% of its capital to growth-stage investments, alongside traditional buyouts. It targets controlled buyouts of companies with enterprise values between $500 million and $2 billion across China, India, Japan, Korea, Southeast Asia, Australia, and cross-border deals where Asia could play a significant role in future returns.

The fund will also write cheques between $150 million and $500 million and invest in 18 to 22 companies. “The fund will aim to source companies with leading positions in niche markets that can maintain pricing power and margins,” ERSRI added in a disclosure in September.

According to the pension fund, BPEA’s seven first funds have generated a combined net return of 1.64 times invested capital, a net IRR of 14.9%, and a net DPI (Distributions to Paid-in-Capital) of 0.64 times invested capital as of March 31, 2021. Its six most recent funds have generated a net IRR of 15.8% since 2002, outperforming the MSCI AC Asia Net (USD) Index by 6.8%. Fund VII, which was 71% committed into 17 transactions by the end of June 2021, delivered a 1.8x net MOIC and 52% net IRR.

Last month, BPEA announced that it secured a sustainability-linked loan worth up to $3.2 billion for environmental, social and governance (ESG) investments across Asia.

The initiative is the first and largest to be launched in Asia by a private equity firm, with initial commitments of approximately $1.5 billion, according to BPEA. The facility will be subject to sustainability performance targets (SPTs) with a focus primarily on gender diversity and climate change.

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.