Private Equity

PE Fund Investments

Sweden's EQT buys Baring Asia in $7.5 B Private Equity merger

Press Release  

Stockholm, Sweden-based EQT AB is to acquire Baring Private Equity Asia (BPEA), which has EUR 17.7 Billion (USD 19.53 Billion) of assets under management (AUM). The total consideration for the deal is EUR 6.8 Billion (about USD 7.5 Billion) on a cash and debt free basis, of which approximately EUR 5.3 Billion is to be paid through the issue of 191.2 million new EQT ordinary shares plus EUR 1.5 Billion in cash. The combined business will be rebranded as BPEA EQT Asia and will continue to be led by BPEA CEO Jean Eric Salata. EQT will acquire 100% of the BPEA management company, the BPEA general partner entities which control the BPEA funds, and the right to carry interest in selected existing funds (including 25% in BPEA Fund VI and 35% in BPEA Fund VII). EQT will invest in and be entitled to 35% of the carried interest in all future funds, starting with BPEA Fund VIII, in line with existing EQT policies. Morgan Stanley is acting as financial adviser to EQT, while Kirkland & Ellis and Vinge are acting as legal counsel. JP Morgan and Goldman Sachs are joint lead advisers to BPEA, and Simpson Thacher & Bartlett; Paul Weiss; and Mannheimer Swartling are acting as legal counsel to BPEA.

From the Venture Intelligence PE-VC Deal Database: Baring Asia - which has been investing in India since 2006 - currently has an IT Services & BPO heavy portfolio including Hinduja Global, Virtusa, CitiusTech, Coforge and AGS Health. It recently exited one of its largest investments in the country - in Hexaware Technologies - via sale to Carlyle Group. Baring Asia’s other investments include RBL Bank, O2 Power and RSP Architects & Planners India/