PSERS to invest in Morgan Stanley PE Asia’s fourth fund

The fund was one of six proposed investments that went before the PSERS board of trustees this week. The finance committee approved total commitments of up to $654 million, according to Pensions & Investments.

Morgan Stanley Private Equity Asia IV has a target of around $1.5 billion, comparable to that of its predecessor, which reached a final close of $1.49 billion in October 2007. Sources earlier told AVCJ that the fund achieved a first close in late 2012.

MSPEA's key markets are China and South Korea. Investments made by Fund III include the $318 million take-private of Singapore-listed Sihuan Pharma in 2009 - which was subsequently went public in Hong Kong - and a $300 million commitment to Tianhe Chemicals Group in early 2012.

More recently, the private equity firm has become involved in two take-private deals of US-listed Chinese companies, dairy brand Feihe International and animal nutrients producer Yongye International. It previously invested in Yongye through a PIPE deal in 2011.

PSERS had $49.5 billion in assets under management as of September 2012. Of this, 21.8% - or $10.7 billion - was allocated to private markets, including $8.2 billion in private equity, $1.6 billion in private debt and $892 million in venture capital. The pension system has a further $6.4 billion invested in real estate and $5.9 billion in hedge funds.

Existing commitments to Asia-focused GPs include Bain Capital Asia Fund II - which closed in July 2012 at $2.3 billion - Baring Asia Private Equity Fund III, IV and V, CVC Capital Partners Asia Pacific III, Headland Private Equity Fund 6, Navis Asia Fund V and Orchid Asia V.

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• Topics
• Fundraising
• LPs
• Buyout
• North America
• Greater China
• China
• South Korea
• Morgan Stanley Private Equity Asia
• LPs
• Pennsylvania Public School Employees’ Retirement System (PSERS)
• USA
• Fundraising