TPG Capital has acquired an ownership interest in Asian hedge fund HS Group, signing a strategic partnership with the firm to provide capital to new hedge funds emerging in Asia, according to a statement.
The investment was made at the group level, not from TPG’s private equity funds, indicating a strategic move for the global private equity giant.
TPG’s Brooklands Capital Strategies division has also entered into a referral agreement with HS for all its institutional client relationships.
HSG also recently entered a partnership with Pleiad Investment Advisors, a hedge fund founded by former China and Japan specialists at Soros Fund Management, Kenneth Lee and Michael Yoshino, both ex-TPG Asia investors. Pleiad plans to launch in the third quarter of 2014 with commitments of over $150 million from its founding partners, HS and affiliates.
TPG’s move was driven by managing partner and co-head of Asia at TPG Tim Dattels, who will join the advisory board of HS Group. Dattels was formerly partner and head of investment banking in Asia excluding Japan at Goldman Sachs.
He said in the statement, “Asia’s hedge fund industry will see secular growth over the coming years, and HS Group’s relationships with the region’s strongest investment talent combined with institutional best practices complement TPG¹s vision for this industry.”
Michael Garrow, founder and chief investment officer of HSG, added, “TPG has one of the longest-standing and most successful private investment franchises in Asia, and the quality of Tim’s relationships and insights is unparalleled. With TPG as strategic partner and Tim joining our Advisory Board, HS Group is well positioned to offer our investors attractive ownership participation in Asia¹s hedge fund growth.”