EQT expands in Asia with €6.8 billion private equity acquisition; CPPIB’s Most Active Pension Limited Partnership

S&P Global Market Intelligence offers our top picks of global private equity news and more released throughout the week.

Sweden-based buyout firm EQT AB (publ) has taken an important step to accelerate operations in Asia by agreeing to acquire Baring Private Equity Asia.

The transaction brings €17.7 billion in assets under management to EQT, adding to the company’s current €73 billion in assets under management. EQT, which is listed on the stock exchange, will pay 6.8 billion euros, made up of new shares and 1.5 billion euros in cash.

BPEA will become BPEA EQT Asia after its merger with EQT’s existing Asia-Pacific private equity team, which has approximately 300 investors. About 115 of them are not invested in EQT products, CEO Christian Sinding said on a call with analysts after the announcement.

Barings is raising funds for its latest flagship fund, Baring Private Equity Asia Fund VIII. The vehicle is targeting $8.5 billion and held an initial close in September. EQT is also raising its latest flagship private equity fund, EQT X, targeting €20 billion.

BPEA is EQT’s third acquisition since listing in 2019. It bought both US property investor Exeter Property Group, now EQT Exeter, and European life sciences venture capital firm LSP, now EQT Life Sciences, in 2021. EQT Exeter also acquired Japan. and Korea-based logistics manager Bear Logi in January. EQT does not expect to make any other significant acquisitions in the near future, Sinding said on the call.

GRAPHIC OF THE WEEK: CPPIB leads the pack in PE pension plans

⮞ The Canada Pension Plan Investment Board was the most active sponsor among its peers.

⮞ In total, CPPIB is invested in 311 funds representing approximately US$73 billion in total commitments, according to data from S&P Global Market Intelligence. Private equity buyout vehicles account for 267 of these funds, or approximately US$70.2 billion in allocated capital.

⮞ The Canada Pension Plan Investment Board’s US$600 million investment in a Series C round of funding in 2018 for Ant Group Co. Ltd. was one of the most important transactions.

FUNDRAISING AND OFFERS

* Advent International Corp. took a majority stake in Swedish payment solutions provider Medius AB, with Marlin Equity Partners LLC remaining the majority shareholder.

* KKR & Co. Inc. raised $17 billion for the KKR Global Infrastructure Investors IV fund at the final close. The vehicle will seek global infrastructure investment opportunities in Organization for Economic Co-operation and Development member countries in North America and Western Europe.

* Clayton Dubilier & Rice LLC has entered discussions with investors on its next buyout fund with an initial target of at least $10 billion, the the wall street journal reported, citing people familiar with the fundraising efforts.

ELSEWHERE IN THE INDUSTRY

* Audax Private Equity will sell diversified healthcare company Lifemark Health Corp. to the retail pharmacy subsidiary of Loblaw Cos. ltd. Shoppers Drug Mart Corp. for C$845 million in a deal expected to close in the second quarter, according to the WSJ. The private equity firm also completed the sale of Stonewall Kitchen LLC, a specialty food and household products business, to TA Associates Management LP.

* TA Associates has also agreed to provide a significant growth investment to application security solutions provider Veracode Inc. The transaction is expected to close in the second quarter.

* Serent Capital Management Co. LLC secured $1.1 billion in capital commitments for Serent Capital Fund V, which will continue to invest in business-to-business software companies.

* Sycamore Partners Management LP and Canadian department store chain Hudson’s Bay Co. are seeking takeover bids for Kohl’s Corp., which could fetch more than $9 billion, the WSJ reported, citing people familiar with the matter.

FOCUS ON: APPLICATION SOFTWARE

* Anthemis Group SA led a $100 million Series B funding round for cyber insurance services company Cowbell Cyber ​​Inc., with funds managed by Permira Advisers Ltd. among the investors who participated in the financing round.

* Vista Equity Partners, alongside L Catterton, led a more than $250 million strategic investment in cloud-based parking software company Flash.

* A group of investors consisting of Capital D Management LLP, investment funds managed by Morgan Stanley Expansion Capital and a group formed by Keyhaven Capital Partners Ltd. and family offices has acquired a 64% majority stake in London-based software as a service company Phrasee Ltd.

Margie D. Carlisle