HONG KONG – Specialist asset manager Baring Private Equity Partners (BPEP) announced today its Asian division completed the final closing of the Baring Asia Private Equity Fund II LP at $257m (e260m).
BPEP says the majority of capital was raised from a number of global institutional investors, including a US corporate pension fund, which made a sizeable commitment.
The fund will invest mainly in the North Asian markets of Hong Kong, Taiwan, China, Korea and Japan, as well as in India and Singapore. It is one of the largest private equity funds raised in the region this year and will target to purchase Asian divisions of US and European multinationals downsizing and divesting non-core overseas assets.
Jean Eric Salata, managing partner of the fund, says despite a difficult period for fundraising, he is encouraged by the vote of confidence investors have demonstrated.
“In the current environment, this pool of capital has two to three times the purchasing power of money raised a few years ago, so we feel good about the opportunity we have to buy business at these price levels. 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 over $2bn in funds under management.