Performance watch: Baring Private Equity Asia

Baring Private Equity Asia is back in market with its latest pan-regional flagship fund.

The Hong Kong-headquartered firm is seeking $8.5 billion for BPEA Fund VIII, according to documents prepared for Rhode Island State Treasury. If successful, the fund would be about 31 percent larger than its predecessor, which closed on $6.5 billion in December 2019. That fund was 71 percent committed as of end-June, the documents said.

BPEA declined to comment.

The firm will commit at least 2.5 percent of the total sum and has set a minimum commitment size of $10 million for third-party LPs, per the documents. Fund VIII will charge a 1.75 percent management fee during the five-year investment period, after which it will drop to 1.5 percent.

Buyouts accounted for 84 percent of BPEA’s prior two funds as of 30 June, with a further 10 percent invested in opportunistic special situations and 6 percent in corporate partnering, which refers to control or minority positions with downside protection.

Cross-border deals make up 22 percent of the two funds by value, with Greater China and India accounting for a further 21 percent and 20 percent respectively. Japan – a market in which the firm has been hoping to increase its activity, according to chief executive Jean Salata – accounts for 12 percent.

BPEA’s deals include the $4.3 billion take private of Nord Anglia Education in 2017 and Indian IT services business Virtusa for $300 million last year – both of which were done alongside CPP Investments.

Here’s how five of the firm’s prior funds have performed so far.