TCDRS backs Baring's latest Asia fund
Texas County & District Retirement System (TCDRS) has committed up to $100 million to Baring Private Equity Asia’s seventh pan-regional fund.
Baring reached a first close of $4.5 billion on the fund in July, with a hard cap of $6.5 billion. Additional LPs include Los Angeles Fire & Police Pensions, Los Angeles City Employees' Retirement System (LACERS), Canada Pension Plan Investment Board (CPPIB), Employees Retirement System of Texas, Teacher Retirement System of Texas, and HSBC Private Banking, according to AVCJ Research.
Documents disclosed by LACERS on announcing its investment in January indicate that the fund has an 11-year term, a GP commitment of 2.5%, and a target return multiple and IRR of 2.5x and 25%. There is a 1.75% management fee – only charged on invested capital on conclusion of the five-year investment period – and 20% carried interest, with an 8% hurdle rate.
Founded in 1997, Baring has more than $17 billion in committed capital. It closed its sixth fund at $3.98 billion in 2015 and has also expanded its strategy to include a dedicated real estate fund and a credit-focused team in India.
The firm has 150 professionals across offices in Hong Kong, Shanghai, Beijing, Mumbai, Singapore, Tokyo and New Delhi. It focuses on control buyout and corporate partnering deals, with Greater China and Southeast Asia the most active geographies. Enterprise values of target companies range from $300 million and $1.5 billion.
As of December 2017, Baring had deployed $10.4 billion in 85 companies across six funds. Fund VI had generated a gross multiple of 1.2x and a gross IRR of 16%. This compared to 1.5x and 11% for Fund V and 1.8x and 9% for Fund IV.
TCDRS had $29.6 billion in assets as of December 2018. Of this, $4.5 billion was in private equity, including $2.4 billion in buyouts, $1.6 billion in venture capital and $464 million in real assets. Total commitments to the asset class stood at $8.2 billion, of which $3.2 billion was unfunded. So far in 2019, TCDRS has also backed Joy Capital and Sky9 Capital's latest China funds.
For more insight on LPs' strategic decisions, visit AVCJ's sister publication Inframation Documents.
More on Fundraising
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.