EQT, the €73.4 billion ($80.1 billion) Stockholm-based private markets investment firm, will acquire Baring Private Equity Asia for €6.8 billion, the two companies announced Wednesday.
The addition of BPEA’s eight Asia-Pacific offices and €17.7 billion in assets under management will go a long way toward achieving EQT’s strategic objective of expanding its footprint in the region, according to an EQT news release. Baring Private Equity Asia is based in Hong Kong.
The transaction is expected to close in the fourth quarter.
EQT, which listed its shares in Stockholm in late 2019, will purchase BPEA with €1.5 billion in cash and issue 191.2 new ordinary EQT shares, valued at €5.3 billion, to cover the remaining consideration.
The growth of private markets in Asia, at an annualized 24% since 2015, continues to outpace the 14% pace seen in Europe and North America combined, the news release noted.
Following the transaction, EQT will create the divisions BPEA EQT Asia — the combination of the BPEA private equity and EQT Asia-Pacific private equity teams — and EQT Private Capital Europe and North America, the news release said.
Jean Eric Salata, BPEA’s CEO and founder, will lead BPEA EQT Asia.
BPEA’s real estate business, meanwhile, will be integrated into EQT’s real estate arm, EQT Exeter — composed principally of Exeter Property Group, which EQT acquired in April 2021.
EQT’s infrastructure business, meanwhile, will continue to operate on a global basis “but is expected to benefit from BPEA’s strong local footprint to generate increased deal flow,” the news release said.
Mr. Salata and senior BPEA team members can dispose of 10% of the EQT shares they receive for the acquisition in September 2023, and then 20% of the remainder for each of the next five years through September 2028.
Affiliated Managers Group Inc., which owns a 15% stake in BPEA, can dispose of 75% of the EQT shares they obtain at the close of the deal, with the remaining 25% subject to a lockup period of 180 days.
Morgan Stanley & Co. International advised EQT on the transaction. J.P. Morgan and Goldman Sachs served as joint advisers for BPEA.
