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PAG (investment firm)

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PAG
Company typePrivate Ownership
IndustryFinancial services
Founded2002; 22 years ago (2002)
FoundersHorst Geicke
Chris Gradel
Katherine Yip
HeadquartersHong Kong and Tokyo
Number of locations
10 offices in 10 countries[1]
Key people
Chairman and CEO: Weijian Shan[2]
ProductsAlternative Investments, Real Estate and Private Equity
Total assetsUS$40 billion (2020)[3]
Websitehttps://www.pag.com/

PAG (Formerly: Pacific Alliance Group) is an Asia-focused Alternative Investment firm. It is one of the largest private investment firms in Asia.[4][5] The company focuses on large-scale buyouts, controls deals and structured minority investments. PAG serves clients in Asia and is headquartered in Hong Kong and Tokyo with additional offices in Shanghai, Sydney, Seoul, Singapore, New York, Geneva, London and Mumbai.[1]

History

PAG was founded in 2002 as the Pacific Alliance Group by Horst Geicke, Chris Gradel and Katherine Yip.[6][7][8]

In 2010, PAG acquired Secured Capital Japan, a major listed real estate fund manager.[9] The business was renamed to PAG Real Estate and is currently headed by Jon Paul Toppino.[2]

PAG's Private Equity business was also founded in 2010 by Weijian Shan.[10][11]

In 2018, the Blackstone Group acquired a Minority Stake in PAG.[12][13]

Businesses and affiliates

PAG has three main businesses. They are Absolute Returns, Real Estate and Private Equity

Absolute Returns

This is PAG's Hedge Fund business. It utilizes Private Debt and Liquid strategies to generate returns for its investors.[14]

As of 2020, PAG's Absolute Returns strategies have invested more than US$15 billion across the region.[14]

Fund Vintage Year Committed Capital ($m)
PAG Asia Special Situations Fund[15] 2011 USD 900
PAG Asia Loan Fund 2013 USD 1,500
PAG Asia Special Situations Fund II 2014 USD 1,375
PAG Asia Loan Fund II[16] 2014 USD 800
PAG Asia Loan Fund III[16] 2018 USD 950
PAG Asia Loan Fund IV[17] 2020 USD 1,500

Real Estate

This is PAG's Real Estate Investment business.[18]

As of 2020, PAG have invested US$31 billion in more than 6,900 properties across Asia.[18]

Fund[19][20] Vintage Year Committed Capital ($m)
Secured Capital Real Estate Partners V 2013 USD 1,500
PAG Real Estate Partners I 2016 USD 1,300
Secured Capital Real Estate Partners VI 2017 USD 1,900
PAG Real Estate Partners II 2019 USD 2,250
Secured Capital Real Estate Partners VII 2020 USD 2,750

Private Equity

PAG has made investments into a variety of different companies from different industries.

Notable companies in its portfolio include Craveable brands, Joyson Safety Systems, Paradise Group Holdings, Lexmark, Cushman & Wakefield, Tencent Music Entertainment Group[21] and Universal Studios Japan.[22]

Fund[23] Vintage Year Committed Capital ($m)
PAG Asia I LP 2012 USD 2,500
PAG Asia II LP 2016 USD 3,600
PAG Growth I LP 2018 USD 350
PAG Asia III LP 2018 USD 6,000

Investment Deals

On 13 December 2013, PAG invested $250 million into theme park operator Universal Studios Japan. Other investors in the deal included Goldman Sachs, MBK Partners and Owl Creek.[24]

On 16 June 2014, TPG Capital, PAG and Ontario Teachers’ Pension Plan acquired DTZ from UGL Limited for an enterprise value of US$1.215 billion. On 11 May 2015, DTZ merged with Cushman & Wakefield in a $2 billion deal. On 2 August 2018, Cushman & Wakefield held an IPO and was listed on the New York Stock Exchange under the symbol “CWK”.[25][26][27]

On 27 June 2014, PAG acquired Commerzbank's Real Estate subsidiary in Japan including a EUR700 million ($954 million) Japanese mezzanine property loan portfolio.[28]

On 21 October 2014, PAG's Secured Capital announced sale of Pacific Century Place Marunouchi in Japan to Singapore's sovereign wealth fund, GIC for US$1.7 billion (S$2.2 billion).[29][30]

On 22 April 2015, PAG purchased Young Toys, a South Korean toymaker for $200 million. On 27 August 2020, PAG  sold Young Toys to a consortium led by MiraeN in a deal worth $127m.[31][32][33]

On 30 July 2015, PAG acquired a US$1 billion portfolio of office assets in Japan from General Electric.[34]

On 20 April 2016, Apex Technology and PAG acquired Lexmark for US$3.6 billion.[35][36]

On 8 February 2017, PAG and Meridian Capital made a US$225 Million Investment in the Food Union Group.[37]

On 5 May 2017, PAG acquired 98.1% of Yingde Gases as part of its de-listing process from the Hong Kong stock exchange.[38]

On 21 November 2017, PAG Acquired Control of Zhenai.com, China's Largest Online Matchmaking Business.[39]

On 11 April 2018, PAG and Joyson Electronics funded Key Safety Systems to successfully complete the acquisition of Air-Bag Maker, Takata for $1.588 billion. The combined company was rebranded Joyson Safety Systems.[40][41]

On 12 July 2019, PAG acquired Craveable Brands from Archer Capital for $450m.[42]

On 5 September 2019, PAG acquired 58% of Hisun BioRay for RMB3.8 billion (US$540 million).[43]

On 11 September 2019, LexinFintech entered into a convertible note purchase agreement with PAG that it will issue and sell convertible notes in an aggregate principal amount of US$300 million to PAG through a private placement.[44]

On 27 August 2020, PAG acquired a 51% stake in Edelweiss Wealth Management (EWM), the second largest non-bank wealth management business in India for US$300 million (INR 22 billion).[45]

On 12 October 2020, PAG along with consortium partners CX Partners and Samara Capital, acquired a controlling stake in Anjan Drug Pvt. Ltd., a Chennai-based manufacturer of active pharmaceutical ingredients (API).[46]

On 19 November 2020, PAG signed an agreement to invest up to AUD150 million in Regional Express Airlines (REX) to support the launch of Rex's domestic jet operations scheduled to commence on 1 March 2021.[47][3]

On 3 December 2020, PAG sold a ¥110 billion real estate portfolio in Japan to The Blackstone Group.[48][49]

References

  1. ^ a b "Key offices". www.pag.com. Retrieved 11 January 2021.
  2. ^ a b "Leadership". www.pag.com. Retrieved 11 January 2021.
  3. ^ a b Hyman, Jeremy. "Baker McKenzie successfully acts for Rex in securing an investment from PAG of up to AUD 150 million to fund growth of Rex's domestic capital city services | Newsroom | Baker McKenzie". www.bakermckenzie.com. Retrieved 11 January 2021.
  4. ^ "China's private equity champion on winning with the Chinese consumer". Fortune. Retrieved 2021-01-11.
  5. ^ "Private Equity Firms to Experience a New Evaluation System". S.J. Grand (in Galician). 2019-12-03. Retrieved 2021-01-11.
  6. ^ "INTERVIEW-UPDATE 1-Pacific Alliance plans $2 bln in China funds". Reuters. 2008-04-30. Retrieved 2021-01-11.
  7. ^ "Horst Geicke - Entrepreneur | Investor | Patron". Horst Geicke. Retrieved 2021-01-11.
  8. ^ Sun, Andrew (22 Oct 2014). "Women of our time - Katherine Yip". CPJobs.{{cite web}}: CS1 maint: url-status (link)
  9. ^ Brasse, Jonathan (2013-01-24). "Pacific Alliance to buy out Secured Capital Japan". PERE. Retrieved 2021-01-11.
  10. ^ "PAG appoints Weijian Shan as group chairman and CEO | Asia Asset Management". www.asiaasset.com. Retrieved 2021-01-11.
  11. ^ "Weijian Shan Named Group Chairman and CEO of PAG". ADVFN. Retrieved 2021-01-11.
  12. ^ "Blackstone Takes Minority Stake in Hong Kong's PAG". Mingtiandi. 2018-03-26. Retrieved 2021-01-11.
  13. ^ "Blackstone Acquires Minority Stake in PAG". Institutional Investor. Retrieved 2021-01-11.
  14. ^ a b "An experienced partner for Asia-focused investment". www.pag.com. Retrieved 2021-01-11.{{cite web}}: CS1 maint: url-status (link)
  15. ^ "PAG Asia raises $900m for special situations fund | AltAssets Private Equity News". Retrieved 2021-01-11.
  16. ^ a b "StackPath". www.pag.com. Retrieved 2021-01-11.
  17. ^ "PAG pulls in $1.5 billion with fourth loan fund". Pensions & Investments. 2020-09-10. Retrieved 2021-01-11.
  18. ^ a b "On-the-ground expertise in Asia". www.pag.com. Retrieved 2021-01-11.{{cite web}}: CS1 maint: url-status (link)
  19. ^ "Our real estate funds". www.pag.com. Retrieved 2021-01-11.{{cite web}}: CS1 maint: url-status (link)
  20. ^ "PAG Real Estate | Palico". www.palico.com. Retrieved 2021-01-11.
  21. ^ SEC. "Tencent Music Entertainment Group Ownership Acquisition Statement SC 13G/A". SEC.report. Retrieved 2021-01-12.
  22. ^ "Our portfolio". www.pag.com. Retrieved 2021-01-11.{{cite web}}: CS1 maint: url-status (link)
  23. ^ "Our private equity funds". www.pag.com. Retrieved 2021-01-11.{{cite web}}: CS1 maint: url-status (link)
  24. ^ Reuters Staff (2013-12-13). "Asian buyout firm PAG invests $250 mln in Universal Studios Japan". Reuters. Retrieved 2021-01-12. {{cite news}}: |author= has generic name (help)
  25. ^ "UGL Closes on Sale of Real Estate Agency DTZ to TPG Group". Mingtiandi. 2014-11-07. Retrieved 2021-01-12.
  26. ^ "DTZ to acquire Cushman & Wakefield for $2 billion". Building Design + Construction. Retrieved 2021-01-12.
  27. ^ August 05, Betsy Kim |; PM, 2018 at 02:00. "Cushman & Wakefield Raises $765M in IPO". GlobeSt. Retrieved 2021-01-12.{{cite web}}: CS1 maint: numeric names: authors list (link)
  28. ^ Phillips, Michelle (2014-06-27). "PAG snaps up €700m Commerzbank loan book". PERE. Retrieved 2021-01-12.
  29. ^ Quah, Michelle (2014-10-21). "GIC sinks US$1.7b into Tokyo space". The Business Times. Retrieved 2021-01-12.
  30. ^ Venkat, Jake Maxwell Watts And P. R. (2014-10-21). "GIC Buys Tokyo Office Property for $1.7 Billion". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-01-12.
  31. ^ Kong, Jonathan Cheng in Seoul and Rick Carew in Hong (2015-04-22). "PAG Buys Korea's Tobots-Maker Young Toys for Around $200 Million". Wall Street Journal. ISSN 0099-9660. Retrieved 2021-01-12.
  32. ^ Edition, The Korea Economic Daily Global. "PAG inks $127 mn deal to sell Tobots-maker Young Toys to MiraeN, 2 local PEFs". The Korea Economic Daily Global Edition. Retrieved 2021-01-12.
  33. ^ Herald, The Korea (2020-09-15). "PAG exits from only Korean portfolio company at discount". www.koreaherald.com. Retrieved 2021-01-12.
  34. ^ staff2015-07-30T12:30:00+01:00, I. P. E. "PAG Real Estate pays $1bn for GE Japan office portfolio". Real Assets. Retrieved 2021-01-12.{{cite web}}: CS1 maint: numeric names: authors list (link)
  35. ^ Wang, Christine (2016-04-19). "Lexmark agrees to be acquired by Apex Technology, PAG Asia Capital for $3.6B". CNBC. Retrieved 2021-01-12.
  36. ^ Tsang, Amie (2016-04-20). "Chinese Consortium Reaches Deal to Buy Lexmark (Published 2016)". The New York Times. ISSN 0362-4331. Retrieved 2021-01-12.
  37. ^ dairyreporter.com. "Food Union Group receives $225m investment". dairyreporter.com. Retrieved 2021-01-12.
  38. ^ Reuters Staff (2017-05-05). "UPDATE 1-Yingde Gases shares suspended as PAG takes over ahead of delisting". Reuters. Retrieved 2021-01-12. {{cite news}}: |author= has generic name (help)
  39. ^ "PAG Acquires Control of ZHENAI.COM, China's Largest Online Matchmaking Business". Fintech Hong Kong. 2017-11-21. Retrieved 2021-01-12.
  40. ^ Staff, aftermarketNews (2018-04-16). "Joyson And PAG Fund KSS To Acquire Air-Bag Maker Takata In Asset Deal". aftermarketNews. Retrieved 2021-01-12.
  41. ^ "Manufacturer Takata is taken over by Joyson and PAG funds". LunaJournal.biz. 2018-04-24. Retrieved 2021-01-12.
  42. ^ "Craveable Brands officially sold to PAG Asia Capital". QSR Media. Retrieved 2021-01-12.
  43. ^ "PAG acquires control of biosimilars firm Hisun BioRay". www.thepharmaletter.com. Retrieved 2021-01-12.
  44. ^ Wang, Eudora (2019-09-13). "Asia-Focused PE Firm PAG To Buy $300M Convertible Notes From China's LexinFintech". China Money Network. Retrieved 2021-01-12.
  45. ^ Shah, Sneha; Barman, Arijit. "PAG to acquire 51% in wealth management, investment banking biz of Edelweiss for Rs 2,244 cr". The Economic Times. Retrieved 2021-01-12.
  46. ^ Shah, Sneha; Thacker, Teena. "PAG-led platform Gamot buys 70% in Chennai-based Anjan Drug". The Economic Times. Retrieved 2021-01-12.
  47. ^ "Australia's Rex gears up to take on Qantas". Nikkei Asia. Retrieved 2021-01-12.
  48. ^ "Blackstone Buys Japan Real Estate Assets From PAG". Mingtiandi. 2020-12-06. Retrieved 2021-01-12.
  49. ^ "Blackstone snaps up $1bn in Japanese real estate". Nikkei Asia. Retrieved 2021-01-12.
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