Hong Kong-based private equity firm PAG has closed fundraising for its third Asia-focussed buyout fund at $6 billion and plans to make investments in India.
The new fund will begin making investments by the end of this year, the firm said in a statement.
PAG group chairman and CEO Weijian Shan told VCCircle via email it plans to invest in India, which is a big and growing market, although China and Japan offer the most opportunities in Asia.
“India has a lot of potential. We are very interested in India and plan to invest significantly in the country,” he said.
When asked about the main challenges of investing in India, Weijian said: “The weakness of the rupee is a big concern.”
PAG, previously known as Pacific Alliance Group, has made only one known investment in India thus far, according to VCCEdge, the data research arm of VCCircle. It had, in 2010, acquired non-banking finance company Asia Pragati Capfin Pvt. Ltd from private equity and hedge fund firm Fortress Investment Group for an estimated Rs 130 crore.
In January this year, Shachindra Nath, former chief executive of financial services company Religare Enterprises Ltd, took control of Mumbai-listed NBFC Chokhani Securities Ltd and merged it with the lending business of Asia Pragati via an all-stock transaction. The new company is now called Ugro Capital Ltd.
This would be PAG’s largest private equity fund till date. It raised a $3.6 billion fund in 2016 and its maiden fund closed at $2.5 billion in 2012, according to media reports.
The firm was set up in 2002 and manages assets worth $20 billion, according to its website. PAG focuses on private equity, real estate and absolute return, according to its website.
It has over 350 employees in Asia, with offices in Hong Kong, Shanghai, Beijing, Shenzhen, Tokyo, Singapore, Sydney and Seoul.
PAG joins other firms that have closed or are nearing the close of pan-Asia funds. Bain Capital, for example, is in the process of raising a $4 billion private equity fund for Asia.
KKR & Co. raised a $9.3 billion Asia-focused fund in 2016, while Carlyle Group closed a $6.5 billion pan-Asia buyout fund earlier this year.