Baring Asia completes $4.5b first close on Fund VII

The GP set a target of $5.5 billion for the vehicle, having previously told LPs that it may seek around $6 billion. The first close was confirmed by a source familiar with the situation. Baring declined to comment.

The firm’s last fundraising process was rapid and oversubscribed. It set a target of $3 billion for Fund VI and reached a first close of $3.2 billion in October 2014, four months after launch. The hard cap was eventually increased to $3.98 billion and the final close came in February 2015.

Several of Asia’s leading pan-regional fund managers have raised substantially larger sums than in the previous vintage. This is in line with the fundraising boom in PE globally as LPs seek higher returns in a low interest rate environment, but it is also said to reflect growing interest in Asia – and pan-regional coverage is the easiest way for many institutional investors to get exposure.

Most recently, The Carlyle Group closed its fifth Asia buyout fund at $6.55 billion, having won commitments of $3.9 billion for Fund IV. Affinity Equity Partners completed fundraising for its fifth vehicle in January with $6 billion while KKR closed its third pan-regional fund at $9.3 billion last year. The increase in size on the previous vintages was 57% and 55%, respectively.

PAG Asia Capital and TPG Capital are both currently in the market, seeking to raise $4.5 billion and $4-4.5 billion for their latest Asian funds. CVC Capital Partners is expected to join them, having reportedly set a target of $4 billion for its next regional vehicle.

Founded in 1997, Baring has more than $11 billion in committed capital and employs over 150 people. The firm’s geographical footprint and its operational resources have expanded over the years and there are now offices in Hong Kong, China, India, Indonesia, Japan, and Singapore. It has also gone multi-strategy, raising a dedicated real estate fund and establishing a credit-focused team in India.

Recent investment activity includes the acquisition of World Freight Company International (WFCI), which markets and manages cargo freight capacity for airlines, in conjunction with Europe’s PAI Partners, and a joint bid with MBK Partners for Chinese car rental business eHi Car Services.

Baring is also a seasoned investor in education. Last year, it teamed up with CITIC Capital to buy Wall Street English from Pearson and completed a $4.3 billion privatization of Nord Anglia Education. The latter deal, which featured Canada Pension Plan Investment Board (CPPIB), saw Baring use equity from Fund VI to take out positions held by two of its earlier funds.

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• Topics
• Buyout
• Fundraising
• GPs
• Baring Private Equity Asia
• Asia