PAG (investment firm)

Last updated

PAG
FormerlyPacific Alliance Group
Company type Private Ownership
Industry Investment Management
Founded2002;22 years ago (2002)
Founders Weijian Shan
Chris Gradel
Jon-Paul Toppino
Key people
 Weijian Shan (Co-founder, Executive chairman)
Chris Gradel (Co-founder, CEO)
Jon-Paul Toppino (Co-founder, President)
Products Private Equity
Real Estate
Private credit
Hedge Funds
AUM US$55 billion (2023)
Number of employees
577 (2022) [1]
Website www.pag.com
Footnotes /references
[2]

PAG is an Asian investment firm that manages multiple asset classes, including private equity, private debt, real estate and hedge funds. It is considered one of the largest private investment firms in Asia. [3]

Contents

In 2023, Private Equity International , ranked PAG as the seventh largest private equity firm in Asia based on total fundraising over the most recent five-year period. [4]

PAG has offices in Asia-Pacific, London and New York.

History

The origins of PAG come from Pacific Alliance Group, a multi-strategy hedge fund co-founded by Chris Gradel and Horst Geicke in 2002. It currently forms PAG's Credit & Markets business. Millennium Management was one of the initial investors of the firm and went on to invest $150 million for a 20% stake in the firm before Gadel bought it back in 2009. [1] [5] [6] [7]

The Real Assets business grew out of Secured Capital Japan, co-founded in 1997 by Jon-Paul Toppino, a Japanese real estate management company listed on the Tokyo Stock Exchange. In March 2009, PAG acquired a 40% stake in Secured Capital via a convertible bond deal of $46 million. In November 2010, PAG acquired the remaining shares of Secured Capital. [1] [5] [6] [7] [8]

In July 2010, Weijian Shan joined PAG and established the private equity business of the firm. [1] [5] [7]

In the same year, Gradel, Shan and Toppino brought their respective strategies together under the PAG brand. [1] [5] [7]

In 2011 the firm rebranded from Pacific Alliance Group to PAG. [1]

In March 2018, the Blackstone Group acquired a minority stake in PAG. [9] [10] [11]

In 2019, PAG formed Polymer Capital Management, a long/short equity hedge fund. [12]

In March 2022, PAG filed for an initial public offering (IPO) in Hong Kong aiming to raise $2 billion. However, in August 2022, it was reported that it would delayed due to market conditions. [5] [11] [13]

Asset strategies

PAG has three main strategies, namely Private Equity, Real Assets and Credit & Markets. [1] [5]

Its flagship funds are PAG Asia Capital and PAG Growth Capital. [5]

Private Equity

Fund [14] Vintage YearCommitted Capital ($m)
PAG Asia I2012USD 2,500
PAG Asia II2016USD 3,600
PAG Growth I2018USD 350
PAG Asia III2018USD 6,000
PAG Growth II2021USD 525
PAG Asia IV [15] 2021USD 2,400

Real Assets

Fund [16] Vintage YearCommitted Capital ($m)
Secured Capital Japan Real Estate Partners2004USD 126
Secured Capital Japan Real Residential Fund I2004USD 174
Secured Capital Japan Real Estate Partners II2005USD 176
Secured Capital Japan Real Estate Partners Asia2006USD 758
Secured Capital Japan Real Residential Fund II2007USD 132
Secured Capital Japan Real Estate Partners IV2009USD 535
Secured Capital Real Estate Partners V2013USD 1,500
PAG Real Estate Partners I2016USD 1,300
Secured Capital Real Estate Partners VI2017USD 1,900
PAG Real Estate Partners II2019USD 2,250
Secured Capital Real Estate Partners VII2020USD 2,750

Credit and Markets

Fund [14] Vintage YearCommitted Capital ($m)
PAG Asia Special Situations Fund2011USD 900
PAG Asia Loan Fund2013USD 1,500
PAG Asia Special Situations Fund II2014USD 1,375
PAG Asia Loan Fund II2014USD 800
PAG Asia Loan Fund III2018USD 950
PAG Asia Loan Fund IV2020USD 1,500
PAG Asia Loan Fund V [17] 2022USD 2,600

Notable deals

On 13 December 2013, PAG invested $250 million into theme park operator Universal Studios Japan. Other investors in the deal included Goldman Sachs, MBK Partners and Owl Creek. [18]

On 16 June 2014, TPG Capital, PAG and Ontario Teachers’ Pension Plan acquired DTZ from UGL for an enterprise value of US$1.215 billion. On 11 May 2015, DTZ merged with Cushman & Wakefield in a $2 billion deal. On 2 August 2018, Cushman & Wakefield held an IPO and was listed on the New York Stock Exchange under the symbol "CWK". [19] [20] [21]

On 27 June 2014, PAG acquired Commerzbank's Real Estate subsidiary in Japan including a EUR700 million ($954 million) Japanese mezzanine property loan portfolio. [22]

On 21 October 2014, PAG's Secured Capital announced sale of Pacific Century Place Marunouchi in Japan to Singapore's sovereign wealth fund, GIC for US$1.7 billion (S$2.2 billion). [23] [24]

On 5 January 2016, Chinese milk firm Yili Group sold all its remaining right on China Youran Dairy Group to Yogurt Holding I (HK) Limited, a subsidiary of PAG. [25]

On 20 April 2016, Apex Technology and PAG acquired Lexmark for US$3.6 billion. [26] [27]

On 2017, PAG acquired Yingde Gasses, largest independent industrial gases producer in China. [28]

On 11 April 2018, PAG and Joyson Electronics funded Key Safety Systems to successfully complete the acquisition of Air-Bag Maker, Takata for $1.588 billion. The combined company was rebranded Joyson Safety Systems. [29] [30]

On 12 July 2019, PAG acquired Craveable Brands from Archer Capital for $450m. [31]

On 27 August 2020, PAG acquired a 51% stake in Edelweiss Wealth Management (EWM), the second largest non-bank wealth management business in India for US$300 million (INR 22 billion). [32]

On 19 November 2020, PAG signed an agreement to invest up to AUD150 million in Rex Airlines to support the launch of Rex's domestic jet operations scheduled to commence on 1 March 2021. [33] [34]

In April 2021, PAG was merging Yingde Gases Group with Shanghai Baosteel Group, in preparation for a $10 billion offshore IPO. [35] In the same year, PAG completed the acquisition of % Arabica. [36]

In August 2022, PAG announced it has entered into an agreement with H.I.S. Co., Ltd. to acquire Huis Ten Bosch, one of Japan's largest theme parks, for $480 million. [37]

In September 2022, PAG entered into agreements to acquire Patties Foods and Vesco Foods, two leading Australian companies in the food and consumer sector. [38]

In August 2023, it was reported that PAG would acquire KKR's controlling stake in Australian Venue Co for about A$1.4 billion. [39] [40]

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References

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  2. ↑ "Form ADV" (PDF). SEC. Archived (PDF) from the original on 24 November 2022. Retrieved 24 November 2022.
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  11. 1 2 "Blackstone-Backed PAG Weighs Delaying $2 Billion Hong Kong IPO, Sources Say". Bloomberg.com. 17 August 2022. Archived from the original on 27 March 2023. Retrieved 9 July 2023.
  12. ↑ "Hedge Fund Firm Polymer Boosts Assets by $1.7 Billion in 2022". Bloomberg.com. 19 October 2022. Archived from the original on 19 October 2022. Retrieved 9 July 2023.
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  14. 1 2 "PAG Capital | Palico". Palico.com. Archived from the original on 30 August 2022. Retrieved 24 February 2021.
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  19. ↑ "UGL Closes on Sale of Real Estate Agency DTZ to TPG Group". Mingtiandi. 7 November 2014. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
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  22. ↑ Phillips, Michelle (27 June 2014). "PAG snaps up €700m Commerzbank loan book". PERE. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
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  25. ↑ "伊利14亿转让优然牧业四成股权". M.bbtnews.com.cn. Retrieved 27 July 2022.
  26. ↑ Wang, Christine (19 April 2016). "Lexmark agrees to be acquired by Apex Technology, PAG Asia Capital for $3.6B". CNBC. Archived from the original on 14 January 2021. Retrieved 12 January 2021.
  27. ↑ Tsang, Amie (20 April 2016). "Chinese Consortium Reaches Deal to Buy Lexmark (Published 2016)". The New York Times. ISSN   0362-4331. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
  28. ↑ Wu, Kane (23 April 2021). "EXCLUSIVE PAG plans $10 BLN merger, offshore IPO of Chinese gases assets - sources". Reuters. Archived from the original on 11 May 2021. Retrieved 11 May 2021.
  29. ↑ "Joyson And PAG Fund KSS To Acquire Air-Bag Maker Takata In Asset Deal". aftermarketNews. 16 April 2018. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
  30. ↑ "Manufacturer Takata is taken over by Joyson and PAG funds". LunaJournal.biz. 24 April 2018. Archived from the original on 14 January 2021. Retrieved 12 January 2021.
  31. ↑ "Craveable Brands officially sold to PAG Asia Capital". QSR Media. 12 July 2019. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
  32. ↑ Shah, Sneha; Barman, Arijit. "PAG to acquire 51% in wealth management, investment banking biz of Edelweiss for Rs 2,244 cr". The Economic Times. Archived from the original on 31 July 2021. Retrieved 12 January 2021.
  33. ↑ "Australia's Rex gears up to take on Qantas". Nikkei Asia. Archived from the original on 14 January 2021. Retrieved 12 January 2021.
  34. ↑ Hyman, Jeremy. "Baker McKenzie successfully acts for Rex in securing an investment from PAG of up to AUD 150 million to fund growth of Rex's domestic capital city services | Newsroom | Baker McKenzie". Bakermckenzie.com. Archived from the original on 16 January 2021. Retrieved 11 January 2021.
  35. ↑ "EXCLUSIVE PAG plans $10 bln merger, offshore IPO of Chinese gases assets - sources". Reuters. 23 April 2021. Archived from the original on 11 May 2021. Retrieved 11 May 2021.
  36. ↑ "Starbucks China Rival Seeking Funds at $1.2 Billion Value, Sources Say". Bloomberg.com. 21 July 2022. Retrieved 9 July 2023.
  37. ↑ "Japan's H.I.S. sells Huis Ten Bosch theme park to Hong Kong fund PAG". Nikkei Asia. Archived from the original on 9 July 2023. Retrieved 9 July 2023.
  38. ↑ "PE firm PAG gets Patties Foods, Vesco in $550m deal". Australian Financial Review . 14 September 2022. Archived from the original on 15 September 2022. Retrieved 9 July 2023.
  39. ↑ Thompson, Sarah; Sood, Kanika; Rapaport, Emma (24 August 2023). "PAG Asia pays $1.4b for KKR's Aussie pubs; lenders swarm deal" . Australian Financial Review. Archived from the original on 25 August 2023. Retrieved 25 August 2023.
  40. ↑ Klyne, Sharon (25 August 2023). "PAG Gets A$900 Million Loan to Buy Pub Operator Australian Venue" . Bloomberg.com. Retrieved 25 August 2023.
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