Yue Yuen Industrial, a subsidiary of Taiwan-listed footwear manufacturer Pou Chen Corporation, has committed $50 million to the eighth buyout fund of Baring Private Equity Asia, according to a stock exchange filing.
The commitment will give Yue Yuen a 0.59% share in Baring Asia PE Fund VIII, a buyout vehicle that seeks about $8.5 billion in commitments, per the filing.
Yue Yuen is 51.11% owned by Pou Chen Corporation, the largest branded athletic and casual footwear manufacturer in the world. Pou Chen manufactures footwear on an OEM basis for major global brands such as Nike, Adidas, Asics, Reboook, Puma, among others.
Baring PE Asia announced earlier this month that it is seeking to raise $8.5 billion for its eighth buyout fund. The fundraising target represents a $2-billion increase compared to the predecessor fund, which held a final close in January 2020 at $6.5 billion.
Baring PE Asia intends to make a GP commitment of at least 2.5% of the aggregate capital commitments to its latest vehicle, according to the documents from the Employees Retirement System of Rhode Island (ERSRI). The pension fund is planning to commit up to $50 million to the fund.
The Hong Kong-based manager’s Fund VIII also recently received a commitment of up to $100 million from another US pension fund, the Illinois Municipal Retirement Fund.
Baring PE Asia’s eighth fund will allocate up to 10% of its capital to growth-stage investments, alongside traditional buyouts.
The Asian PE firm typically targets control 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 firm’s eighth fund will write cheques between $150 million and $500 million and invest in 18 to 22 companies.
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.