Sweden-headquartered buyout house EQT AB has taken a significant step to ramp up Asia operations by agreeing to acquire Baring Private Equity Asia. The transaction brings €17.7 billion of assets under management to EQT, adding to the firm’s €73 billion in current AUM. EQT, which is publicly listed, will pay €6.8 billion, consisting of new shares and €1.5 billion in cash. BPEA will become BPEA EQT Asia after it merges with EQT’s existing Asia-Pacific private equity team, which has about 300 investors. Approximately 115 of them are not invested in EQT products.
Barings is out fundraising for its latest flagship fund, Baring Private Equity Asia Fund VIII. The vehicle is targeting $8.5 billion and held a first close in September. EQT is also out raising its latest flagship private equity fund, EQT X, targeting €20 billion. BPEA is EQT’s third acquisition since it listed in 2019. It bought both U.S.-based real estate investor Exeter Property Group, now EQT Exeter, and European life science venture capital firm LSP, now EQT Life Sciences, in 2021. EQT Exeter also acquired Japan and Korea-headquartered logistics manager Bear Logi in January. EQT does not expect to make any further large acquisitions soon.