The transaction would enhance EQT’s presence in Asia, with more than 300 FTE+ across nine regional offices, creating a large-scale Pan-Asian platform
BPEA is a top market investment manager. (Credit: Alexas_Fotos from Pixabay)
Swedish equity investment company EQT has agreed to buy the Asian private investment firm Baring Private Equity Asia (BPEA) for a total consideration of €6.8bn.
Established in 1997, BPEA is among the top private market investment managers in Asia, with assets under management (AUM) valuing €17.7bn.
Under the terms of the deal, EQT will acquire the BPEA management company, its general partner entities which control the BPEA funds, along with interest in select existing funds.
The company would not only obtain 25% in BPEA Fund VI and 35% in BPEA Fund VII, but also be entitled to receive 35% in all future funds, beginning with BPEA Fund VIII.
Of the total consideration of €6.8bn, EQT intends to pay €1.5bn in cash and the remaining €5.3bn by issuing 191.2 million of its new ordinary shares.
The transaction is expected to compete in Q4 2022, subject to customary closing conditions, including antitrust, regulatory approvals and certain BPEA fund investor consent approvals.
It is also subject to EQT majority shareholder approval, EQT Board of Directors issuing the consideration shares, and more than 50% of shareholders voting in favour of the deal.
Upon closing of the transaction, EQT Private Capital will have two divisions, BPEA EQT Asia, and EQT Private Capital Europe & North America.
BPEA founder and CEO Jean Eric Salata Salata will lead the BPEA EQT Asia, and oversee EQT’s Private Capital business in Asia, reporting directly to EQT CEO and managing partner Christian Sinding
Sinding said: “Expanding our footprint in Asia is part of the strategic objectives we set out at the time of our IPO, and BPEA represents a unique opportunity, as a well-established and top-performing firm in the region.
“With its thematic sector-based approach, strong track-record in value creation, and most importantly, a learning culture and long-term partnership approach, we feel deeply aligned with BPEA. We are truly impressed by what Jean and the BPEA team have built over the past 25 years.
“A perfect cultural and ideological fit with EQT, and a unique opportunity to establish EQT as a world-leading private markets platform with a scaled Asian platform and truly global reach.”
Morgan Stanley & Co. International served as a financial advisor, while Kirkland & Ellis International and Vinge as legal counsel to EQT, on the transaction.
J.P. Morgan and Goldman Sachs served as joint lead advisers, Simpson Thacher & Bartlett, Paul, Weiss, Rifkind, Wharton & Garrison and Mannheimer Swartling as legal counsel to BPEA.