PAG is an Asian investment firm that manages multiple asset classes, including
private equity, private debt, real estate and
hedge funds. It is considered one of the largest private investment firms in Asia.[3]
In 2023, Private Equity International, ranked PAG as the seventh largest private equity firm in Asia based on total fundraising over the most recent five-year period.[4]
The origins of PAG come from Pacific Alliance Group, a multi-strategy
hedge fund co-founded by Chris Gradel and
Horst Geicke in 2002. It currently forms PAG's Credit & Markets business.
Millennium Management was one of the initial investors of the firm and went on to invest $150 million for a 20% stake in the firm before Gadel bought it back in 2009.[1][5][6][7]
The Real Assets business grew out of Secured Capital Japan, co-founded in 1997 by Jon-Paul Toppino, a Japanese real estate management company listed on the
Tokyo Stock Exchange. In March 2009, PAG acquired a 40% stake in Secured Capital via a
convertible bond deal of $46 million. In November 2010, PAG acquired the remaining shares of Secured Capital.[1][5][6][7][8]
In July 2010,
Weijian Shan joined PAG and established the private equity business of the firm.[1][5][7]
In the same year, Gradel, Shan and Toppino brought their respective strategies together under the PAG brand.[1][5][7]
In 2011 the firm rebranded from Pacific Alliance Group to PAG.[1]
In March 2022, PAG filed for an
initial public offering (IPO) in Hong Kong aiming to raise $2 billion. However, in August 2022, it was reported that it would delayed due to market conditions.[5][11][13]
Asset strategies
PAG has three main strategies, namely Private Equity, Real Assets and Credit & Markets.[1][5]
Its flagship funds are PAG Asia Capital and PAG Growth Capital.[5]
On 27 June 2014, PAG acquired
Commerzbank's Real Estate subsidiary in Japan including a EUR700 million ($954 million) Japanese mezzanine property loan portfolio.[22]
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).[23][24]
On 5 January 2016, Chinese milk firm
Yili Group sold all its remaining right on China Youran Dairy Group to Yogurt Holding I (HK) Limited, a subsidiary of PAG.[25]
On 20 April 2016, Apex Technology and PAG acquired
Lexmark for US$3.6 billion.[26][27]
On 2017, PAG acquired Yingde Gasses, largest independent industrial gases producer in China.[28]
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.[29][30]
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).[32]
On 19 November 2020, PAG signed an agreement to invest up to AUD150 million in
Rex Airlines to support the launch of Rex's domestic jet operations scheduled to commence on 1 March 2021.[33][34]
In April 2021, PAG was merging Yingde Gases Group with
Shanghai Baosteel Group, in preparation for a $10 billion offshore
IPO.[35] In the same year, PAG completed the acquisition of
% Arabica.[36]
In August 2022, PAG announced it has entered into an agreement with H.I.S. Co., Ltd. to acquire
Huis Ten Bosch, one of Japan's largest theme parks, for $480 million.[37]
In September 2022, PAG entered into agreements to acquire
Patties Foods and
Vesco Foods, two leading Australian companies in the food and consumer sector.[38]
In August 2023, it was reported that PAG would acquire
KKR's controlling stake in
Australian Venue Co for about A$1.4 billion.[39][40]
References
^
abcdefg"PAG"(PDF). 28 March 2022. Archived from
the original(PDF) on 28 March 2022. Retrieved 1 October 2022.
^"Form ADV"(PDF). SEC.
Archived(PDF) from the original on 24 November 2022. Retrieved 24 November 2022.