PAG, a Hong Kong-based manager of private market and absolute-return strategies, closed its latest opportunistic real estate fund, SCREP VII, with commitments of $2.75 billion.
The fund – which closed at its hard cap with commitments from about 25 investors, mostly pension funds and sovereign wealth funds – "will focus on distressed debt and property investments in Japan as well as opportunistic real estate in China, Australia, Korea" among other select markets, said a news release Tuesday.
Despite the unprecedented challenges facing global markets now, the team remains confident that "Asia and Japan in particular represent attractive long-term opportunities," Jon-Paul Toppino, managing partner of PAG Real Estate and group president of PAG, said in the release. PAG Real Estate, which merged in 2011 with Secured Capital Japan, has more than $9 billion in assets under management across the Asia-Pacific region.
Commitments to PAG's new fund came in well above the $1.9 billion garnered for SCREP VI, which closed in September 2017.
The $157.6 billion Austin-based Teacher Retirement System of Texas announced on Feb. 7 that it had committed $150 million to SCREP VII.
PAG currently manages more than $35 billion in capital for some of the world's largest private and institutional investors.