UK-headquartered Baring Private Equity Partners [BPEP] has confirmed that its Asian division, Baring Private Equity Partners Asia, has held a final closing of the Baring Asia Private Equity Fund II LP at $257m.
This takes the total now managed by the Asia team, led by Managing Partner Jean Eric Salata, to $563m. The team consists of 16 investment professionals based in Hong Kong, Singapore, India, Shanghai and San Francisco.
The majority of the capital raised has come from a core group of institutional investors who participated in the firm's Asia Fund I, including the Singapore Government Investment Corporation, Invesco Private Capital Inc. and CDP Capital, the investment arm of Caisse de Dépôt et Placement du Quebec. The firm said it had also been successful in attracting new investors from the US, Europe and Asia.
The new fund will invest mainly in the North Asian markets of Hong Kong, Taiwan, China, Korea and Japan, as well as in India and Singapore and is one of the largest Asia-focussed private equity funds raised in the region this year. The fund aims to purchase Asian divisions of US and European multinationals downsizing and divesting non-core overseas assets.
Salata commented: 'In the current environment, this pool of capital has two to three times the purchasing power of money raised a few years ago… We think the fundamentals have turned in favour of private buyers, as alternative sources of equity and debt funding have declined substantially in Asia.'
BPEP has grown a significant private equity franchise in emerging markets across the world, with some 80 per cent of the total $2.2bn it manages allocated to emerging markets. The firm has 21 offices spread across 17 countries.