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]
Subsidiaries Polymer Capital Management
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]

In March 2024, it was reported that the Abu Dhabi Investment Authority was offering to buy out stakes in PAG funds from investors who wanted to exit the China market. [14]

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]

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. [15]

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". [16] [17] [18]

On 27 June 2014, PAG acquired Commerzbank's Real Estate subsidiary in Japan including a EUR700 million ($954 million) Japanese mezzanine property loan portfolio. [19]

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). [20] [21]

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. [22]

On 20 April 2016, Apex Technology and PAG acquired Lexmark for US$3.6 billion. [23] [24]

On 2017, PAG acquired Yingde Gasses, largest independent industrial gases producer in China. [25]

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. [26] [27]

On 12 July 2019, PAG acquired Craveable Brands from Archer Capital for $450m. [28]

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). [29]

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. [30] [31]

In April 2021, PAG was merging Yingde Gases Group with Shanghai Baosteel Group, in preparation for a $10 billion offshore IPO. [32] In the same year, PAG completed the acquisition of % Arabica. [33]

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. [34]

In September 2022, PAG entered into agreements to acquire Patties Foods and Vesco Foods, two leading Australian companies in the food and consumer sector. [35]

In August 2023, it was reported that PAG would acquire KKR's controlling stake in Australian Venue Co for about A$1.4 billion. [36] [37]

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References

  1. 1 2 3 4 5 6 7 "PAG" (PDF). 28 March 2022. Archived from the original (PDF) on 28 March 2022. Retrieved 1 October 2022.
  2. ↑ "Form ADV" (PDF). SEC. Archived (PDF) from the original on 24 November 2022. Retrieved 24 November 2022.
  3. ↑ "China's private equity champion on winning with the Chinese consumer". Fortune. Archived from the original on 15 January 2021. Retrieved 11 January 2021.
  4. ↑ "PEI 300 | The Largest Private Equity Firms in the World". Private Equity International. 1 June 2023. Archived from the original on 31 May 2023. Retrieved 22 July 2023.
  5. 1 2 3 4 5 6 7 Standard, The. "Keeping the faith in alternative assets". The Standard. Archived from the original on 9 July 2023. Retrieved 9 July 2023.
  6. 1 2 Stokes, Henry (7 July 2009). "West Meets East". Institutional Investor. Archived from the original on 9 July 2023. Retrieved 9 July 2023.
  7. 1 2 3 4 Marsh, Joe (21 June 2010). "TPG's Shan to head Pacific Alliance and start new PE fund | Alternatives". AsianInvestor. Archived from the original on 9 July 2023. Retrieved 9 July 2023.
  8. ↑ Brasse, Jonathan (24 January 2013). "Pacific Alliance to buy out Secured Capital Japan". PERE. Archived from the original on 9 July 2023. Retrieved 9 July 2023.
  9. ↑ "Blackstone Takes Minority Stake in Hong Kong's PAG". Mingtiandi. 26 March 2018. Archived from the original on 22 October 2019. Retrieved 11 January 2021.
  10. ↑ "Blackstone Acquires Minority Stake in PAG". Institutional Investor. 26 March 2018. Archived from the original on 16 April 2021. Retrieved 11 January 2021.
  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.
  13. ↑ "Private equity firm PAG said to eye US$2 billion in Hong Kong IPO plan". South China Morning Post. 28 March 2022. Archived from the original on 6 April 2022. Retrieved 7 April 2022.
  14. ↑ Wiggins, Kaye (19 March 2024). "Abu Dhabi fund offers to buy out investors fleeing China private equity". www.ft.com. Archived from the original on 20 June 2024. Retrieved 6 July 2024.
  15. ↑ "Asian buyout firm PAG invests $250 mln in Universal Studios Japan". Reuters. 13 December 2013. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
  16. ↑ "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.
  17. ↑ "DTZ to acquire Cushman & Wakefield for $2 billion". Building Design + Construction. 12 May 2015. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
  18. ↑ Betsy Kim (5 August 2018). "Cushman & Wakefield Raises $765M in IPO". GlobeSt. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
  19. ↑ 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.
  20. ↑ Quah, Michelle (21 October 2014). "GIC sinks US$1.7b into Tokyo space". The Business Times. Archived from the original on 13 January 2021. Retrieved 12 January 2021.
  21. ↑ Venkat, Jake Maxwell Watts And P. R. (21 October 2014). "GIC Buys Tokyo Office Property for $1.7 Billion". The Wall Street Journal. ISSN   0099-9660. Archived from the original on 23 October 2014. Retrieved 12 January 2021.
  22. ↑ "伊利14亿转让优然牧业四成股权". M.bbtnews.com.cn. Retrieved 27 July 2022.
  23. ↑ 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.
  24. ↑ 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.
  25. ↑ 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.
  26. ↑ "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.
  27. ↑ "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.
  28. ↑ "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.
  29. ↑ 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.
  30. ↑ "Australia's Rex gears up to take on Qantas". Nikkei Asia. Archived from the original on 14 January 2021. Retrieved 12 January 2021.
  31. ↑ 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.
  32. ↑ "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.
  33. ↑ "Starbucks China Rival Seeking Funds at $1.2 Billion Value, Sources Say". Bloomberg.com. 21 July 2022. Retrieved 9 July 2023.
  34. ↑ "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.
  35. ↑ "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.
  36. ↑ 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.
  37. ↑ 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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