M and A
Deals Of The Day: The Latest In Wealth Management M&A – EQT Buys Baring Private Equity Asia
The purchase price for the share and cash deal was €6.8 billion.
The Swedish investment house, EQT AB, has agreed to
buy Baring Private Equity Asia, which oversees €17.7 billion
($19.4 billion) of assets under management. The deal gives the
Nasdaq-listed business an opportunity to deepen its involvement
in the fast-growing Asia region.
The purchase price was €6.8 billion, costing 191 million of new
ordinary EQT shares, valued at €5.3 billion, plus €1.5 billion of
cash, EQT said in a statement earlier this week.
When the transaction completes, EQT will have a local presence in
25 countries. The combined organisation, which will be rebranded
as BPEA EQT Asia, will continue to be led by BPEA’s chief
executive Jean Eric Salata and his senior management team
The combination is expected to be immediately high single digit
accretive to EQT’s earnings per share.
“Expanding in Asia is a strategic priority for EQT, as the region
accounts for more than a third of global GDP today and is
expected to contribute 40 per cent-plus of global GDP growth by
2030,” the firm said. “Global private markets firms are
increasingly taking share in the underpenetrated Asian private
markets, but still only represent 34 per cent of the total
market.”
BPEA currently invests from its flagship Private Equity Fund
VIII, which had its first close in September 2021. The business
has operated since 1997.
