(updated with correction)
Bank of America Merrill Lynch is selling its private equity portfolio in Asia to a syndicate comprising private equity firms Paul Capital, HarbourVest Partners, LGT Capital Partners and Axiom Asia, said Bryon T. Sheets, partner at Paul Capital.
The deal is worth $400 million, Mr. Sheets said.
BofA Merrill Lynch’s Asia private equity team is spinning out into a new firm, NewQuest Capital, to be led by Managing Partner Darren Massara and partners Amit Gupta, Bonnie Lo and Min Lin, all formerly of BofA Merrill Lynch’s Asia private equity team.
The four private equity firms will be sole limited partners of NewQuest Capital’s first fund, which is buying the entire BofA Merrill Lynch Asian private equity portfolio of more than 20 growth-equity and buyout interests primarily in Chinese and Indian companies.
The four investors will account for 99% of the capital in the first fund, Mr. Sheets said. The fund will also have capital reserved to make new and follow-on investments, mostly in direct secondary equity positions in Asia.