Largest private equity fund launched in Asia since the global financial crisis; Fund V raised in less than five months; 60 per cent larger than BPEA’s Fund IV which was closed in February 2008.
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Baring Private Equity Asia (BPEA) has closed the Baring Asia Private Equity Fund V, with $2.46 billion in investor commitments, making it the largest private equity fund launched in Asia since the Global Financial Crisis.
BPEA affiliates now have approximately $5 billion in funds under management, making the group one of the largest dedicated Asian private equity firms. Fund V which was raised in less than five months closed at its hard cap and was heavily oversubscribed with more than $1 billion in excess demand. The fund is 60 per cent larger than BPEA’s Fund IV, which was one of the largest regional growth equity funds in Asia when it closed in February 2008 at $1.52 billion.
“Further building on BPEA’s successful track record, Fund V will deploy the same investment strategy targeting growing mid-sized businesses in Asia that require capital for expansion, recapitalization or acquisitions. The fund will target companies in a broad range of sectors with operations in Greater China, India, Japan, Singapore, South Korea or South East Asia,” BPEA said.
Jean Eric Salata, the Hong Kong-based Founding Partner and CEO of Baring Asia said, “We sensed from LPs around the world that, although Asia is at the top of many people’s lists for new private equity commitments, post financial crisis they are more focused than before on investing with firms that are established and that have been tested in difficult markets. This is our fifth fund, and Asia is no longer considered a new market, so to this extent, our prior track record and our institutionalized platform was an important factor in the success of the fundraise.”
There are over 30 new institutional investors in the Fund. Approximately 47 per cent of the investor commitments came from North America, 28 per cent from Asia, and 25 per cent from the Middle East and Europe.
The firm has an active portfolio of 30 companies with combined 2010 revenues of $6.7 billion and net earnings of $740 million. Revenues at its top 10 companies increased by 28 per cent in 2010. One of the firm’s largest investments was the buyout of Nord Anglia Schools, an operator of premium private schools focused on emerging markets, which was previously listed in London and which was taken private by BPEA in 2008.
Source: CPI Financial