Affiliated Managers Group, Inc, a global asset management company, has acquired an equity interest in Baring Private Equity Asia (“Baring Asia”). Baring Asia’s senior partners will continue to hold a majority of the equity of the business and, consistent with AMG’s partnership approach, direct its day-to-day operations.
Based in Hong Kong, Baring Asia is the largest dedicated Asian private equity firm, and advises funds with total assets under management of over US$8 billion. Founded by Jean Eric Salata in 1997, Baring Asia’s investment philosophy is deeply rooted in the principles of capital preservation and diversified portfolio construction. Through its pan-Asian investment platform spanning offices in Hong Kong, Shanghai, Beijing, Mumbai, Singapore, Jakarta, and Tokyo, Baring Asia’s 66 investment professionals specialize in growth-oriented investments, sponsoring management buyouts and providing capital to companies for expansion, recapitalization or acquisitions. With an 18-year track record of alpha generation across multiple business cycles, Baring Asia’s proprietary deal origination is facilitated by the firm’s excellent reputation across Asia and lengthy list of IPO success stories, as well as the depth of its local networks across an array of industries. Baring Asia has received numerous awards for its outstanding performance, including 2013 “Firm of the Year” by Asian Venture Capital Journal India and 2013 “Mid-Market Firm of the Year in Asia” by Private Equity International, and most recently, the Asian Venture Capital Journal selected Baring Asia as the 2015 winner for “Fundraising of the Year – Large Cap” and Jean Salata as “PE Professional of the Year.”
Baring Asia has over 30 portfolio companies across Asia which had in aggregate 100,000 employees and US$30 billion in revenues in 2014, and the firm’s diversified presence limits its exposure to volatility in any single market. The firm’s client base comprises over 200 leading institutional investors from over 20 countries, including pension plans, insurance companies, endowments, foundations, and sovereign wealth funds.
“Baring Asia is AMG’s first Affiliate based in Asia, and with its exceptional two-decade investment track record of returns and outstanding prospects for future growth, the firm is an excellent addition to our Affiliate group,” said Sean M. Healey, Chairman and Chief Executive Officer of AMG. “As the leading pan-Asian private equity firm, with over 70 investments across its history, Baring Asia has a tremendous forward opportunity set in its private equity strategies; we see meaningful demand from sophisticated clients globally for exposure to secular growth opportunities in Asia, including through the private equity format. Baring Asia also has a real estate fund, leveraging its regional investment experience and offering excellent prospects for further growth over time. As with other recent new Affiliate investments in Europe and Africa, our partnership with Baring Asia demonstrates the global appeal and broad applicability of AMG’s partnership approach. I am very pleased to welcome Jean Salata and his partners to our Affiliate group, and we look forward to working with our new partners on a variety of initiatives to enhance the firm’s future growth and development.”
“We are extremely excited about this new partnership with AMG, and believe it brings significant competitive advantages for our business. AMG’s investment is an endorsement of our firm’s position as a leading Asian alternative asset manager, and its unique partnership model allows us to preserve our investment independence, operational autonomy, and focus on generating strong returns for our clients over the long term,” said Jean Eric Salata, Founding Partner and Chief Executive Officer of Baring Asia. “With its unparalleled track record as a partner to independent firms, including leading boutique alternative firms globally, and the proven results of its global marketing and distribution platform, we believe AMG is the ideal permanent partner for Baring Asia as we move into our next phase of growth.”
Baring Asia will use the proceeds of the transaction to fund the growth of its business and further align interests between its LPs and staff at the firm. As part of the transaction, Baring Asia’s leadership has agreed to long-term commitments with the firm. The terms of the transaction were not disclosed.