Texas Teachers pension fund commits $200m to Baring PE Asia’s seventh fund

Hong Kong. Photo by Sarah Cween on Unsplash

Texas Teacher Retirement System has committed $200 million to Baring Private Equity Asia’s latest Asia fund, Fund VII, according to a monthly transaction report.

The pension fund approved a private equity allocation of $570 million in July, where Baring’s Fund VII received the largest commitment compared to other firms’ vehicles. It is also the only Asia-focused fund to receive a capital commitment in the month of July.

Hong Kong-based Baring is said to have received commitments from 60 investors for Fund VII, which recently hit its first close at $4.5 billion. The firm is said to be seeking $6 billion for the vehicle, while its predecessor was closed at $4 billion in 2015.

Texas Teachers has previously allocated $150 million to TPG Capital’s seventh vehicle, TPG Asia VII, which is currently on the road to raise $4-4.5 billion.

The pension fund also committed $320 million to TPG Partners VIII, $100 million to TPG Kentucky Co-Invest, $80 million to TPG Healthcare Partners and €37.5 million ($44 million) to Austin VI.

Another Texas pension fund – Employees Retirement System of Texas (ERS) – has also committed $100 million into TPG Asia VII in June.

Pension funds from the West are making returning, if not new, commitments to Asia-focused funds that are raising larger vehicles to invest in the region.

In August, the New York State Teachers’ Retirement System approved $250 million worth of commitments into Primavera Capital Fund II and HarbourVest’s HIPEP Select Asia Fund III, who will receive $100 million and $150 million, respectively.

Based on past reports, the pension fund is a returning investor in Asian vehicles managed by global private markets asset manager HarbourVest Partners, having invested $150 million and $100 million in Fund III’s predecessors, Fund II and Fund I.

Baring is also said to be raising a $1 billion fund for its real estate vehicle where investors such as ERS, County & District Retirement System, and State of Maine Public Employees Retirement System have made commitments.

China-focused PE firm Hillhouse Capital Management secured an $85-million commitment from the Texas County & District Retirement System last week for its Hillhouse Fund IV. The firm is raising up to $8 billion for its Asia-focused vehicle to prioritise investments in the consumer, TMT, industrials, and healthcare sectors; the fund is reportedly said to be likely to surpass KKR & Co’s record $9.3-billion Asia fund.

The State of Michigan Retirement Systems had earlier committed $100 million to Singapore-based Axiom Asia Private Equity’s Axiom Asia V and Axiom Asia Co-Investment Fund.

This portal was the first to report that the Axiom is raising slightly over $1 billion for Axiom Asia V, the firm’s fifth fund of funds vehicle, to invest in over 20 small and medium-sized general partners across buyout, growth capital and venture capital strategies.

Also Read:

New York pension fund commits $250m to two Asia PE funds

Baring PE Asia said to have made $4.5b first close for seventh 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.