Baring Private Equity Asia has recently been bought by global investment organization EQT for $7.5 billion, and Chief Executive Officer Jean Salata is excited to expand the company’s global footprint.
The transaction, which will close in Quarter 4 of 2022, will cost EQT $1.7 billion in cash and 191 million in new ordinary shares of the company. It will be rebranded as BPEA EQT Asia after the acquisition.
Salata, a Hong Kong-based billionaire and the former Director of AIG Global Investment Corporation, led the management buyout of Baring in 2000. Baring is one of the largest private equity firms in Asia. Their portfolio consists of 46 companies, including e-commerce giant JD.com and technology firm Horizon Robotics. In his tenure with Baring, Salata has taken the company from a small private equity firm with $300 million in its first fund to a $19.5 billion company.
Salata will join EQT’s executive team and continue to play an influential role in the company’s direction. Salata said that he’s excited about the expansion, as EQT will add 25 countries to their customer base that represent roughly 80% of the global gross domestic product (GDP). He adds that the growth of private markets in Asia has been an annualized 24% since 2015, which consistently outpaces Europe and North America combined. To Salata, the purchase represents an opportunity for Asia’s private market to outperform significantly.
“We are thrilled to embark on this journey and the possibilities that this combination creates,” Salata said in a statement with EQT. “It is a game-changer for both our firms and will accelerate our ability to deliver superior returns for our clients.”
He also looks forward to expanding Baring’s active ownership strategies across some of its core markets with the help of EQT. Asian private markets are underrepresented in global private market firms, Salata added, though they represent 34% of the total market.