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.