Hong Kong-based private equity group PAG has raised several billion dollars for a fund that focuses on investing in Asia. The ongoing U.S.-China trade war has not deterred fund managers from investing in the region.
PAG, led by chief executive Shan Weijian, has raised $6 billion in a new fund. Despite the ongoing U.S.-China trade war and a global mandate, the fund manager invests mostly in Asia.
«I focus on companies that cater to private consumption, especially when they have significant barriers to entry,» said Shan, who was quoted in a «Financial Times» (behind paywall). PAG’s new fund was largely raised from big US pension funds, but it also has the backing of sovereign wealth funds of Kuwait and Singapore.
Asia-Focused
Most of the firm’s biggest deals involve control rather than just minority stakes, which is uncommon amongst Asian private equity firms. In September, a unit of PAG launched a HK$5.24 billion ($671 million) unsolicited takeover bid for Spring Real Estate Investment Trust (REIT), and later sweetened the deal further, as reported by Reuters.
In recent months, private equity firms including Hillhouse Capital and KKR have both raised funds in excess of $9bn to invest in the region. «Fundraising and assets under management figures of Asia-focused funds have increased significantly since the end of 2016,» according to data provider Prequin.
