PAG Asia I reaches $1.7bn first close

The alternative investment specialist led by TPG's former top dealmaker Weijian Shan has reached a first close on its way to a $2.5bn target.

Alternative investments group PAG has garnered over $1.7 billion in a first close for its private equity fund PAG Asia I just eight months after formally launching fundraising.

The fund received commitments from investors including sovereign wealth funds, public and corporate pension systems and financial institutions, Weijian Shan, managing partner and chairman and chief executive of PAG, said in a statement. It is expected to achieve a final close on $2.5 billion in upcoming months.

In the course of fundraising, PAG Asia Capital has built a pipeline of investments. So far this year, it has executed agreements to invest over $700 million in retail, insurance, hotel and entertainment industries in and around China.

New capital
for China

PAG declined to elaborate beyond the statement, but an industry source confirmed PAG's planned buyout of mobile communications devices retailer and distributor Funtalk China Holdings as one such deal.

Founded in 2002, PAG (formerly Pacific Alliance Group) is now one of the region’s largest Asia-focused alternative investment managers with $7 billion of funds under management across private equity, real estate and hedge funds and special situations.

In November last year, just four months after bringing on board former TPG dealmaker Shan, the firm announced plans to acquire Tokyo Stock Exchange-listed private equity real estate fund manager Secured Capital Japan in a deal that would effectively extend the firm's reach beyond the Chinese border and into Japan. That transaction was successfully concluded in March this year.