Fundraising of the Year – Baring Private Equity Asia

Baring whittled down the interested parties to more than 30 institutional investors, producing a fund 60% larger than its predecessor and well in excess of the initial target. Acclaimed as proof of the end of a global slump on fundraising, the vehicle was acknowledged as as the largest private equity fund launched in Asia since the global financial crisis.

"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," Jean Eric Salata, the Hong Kong-based founding partner and CEO of Baring Asia, said at the time.

Salata elaborated to AVCJ that Baring essentially saw all of its major investors from the previous fund return. This included notable LPs such as Pennsylvania Public School Employees Retirement System, Universities Superannuation Scheme and Pantheon, while new investors included the CPP Investment Board, and the public employee retirement systems of Ohio, Illinois Teachers and State of Oregon.

The raise was additionally iconic for the number of Asian LPs who participated in, emphasizing the growing strength local investors have on Asia's private equity landscape.

"Approximately 30% of our capital came from Asia, which was more than last time. The mix is different too," Salata told AVCJ in March. "In the past it was more from the fund-of-funds but this time it was sovereign wealth funds and national pension types, which we haven't had in the past."

Nevertheless, the US share remains the largest at over 50% of the fund."

The vehicle will continue with the same strategy instituted for the firm's fourth fund - a 50-50 balanced portfolio between growth equity deals and buyouts. "That is the same strategy that has worked for us in the past and where we see ourselves going forward," Salata emphasized.

Also in line with the fund's mandate is China, which remains interesting given the quality of companies and management teams emerging from the market. However, rising valuations may be the catalyst of change for funds, including Baring, as deal sourcing becomes more rigorous to beat the crowds. "I wouldn't be surprised to see us looking at a broader range of markets to find better value," Salata concluded.

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• Topics
• South Asia
• Southeast Asia
• North Asia
• Central Asia
• Australasia
• Greater China
• Baring Private Equity Asia
• China
• Fundraising