Key Takeaways
- • PAG raised over $1 billion in its first closing for the PAG Real Estate Partners fund, targeting a total of $1.2 billion and expecting net returns of 10–13% for investors.
- • The new pan-Asia core-plus real estate fund will focus on investment opportunities in China, Japan, and Australia, managed by PAG partner Broderick Storie under the firm's PAG Real Estate division.
- • The fund is scheduled for a final closing in June 2016, following a first closing in recent weeks as of mid-April 2016.
- • PAG now manages over $15 billion in capital across private equity, real estate, and absolute return vehicles, following the January 2016 closing of its $3.6 billion PAG Asia II LP buyout fund.
- • The real estate fund launch reflects PAG's diversification beyond buyout investing, led by founder and former TPG executive Shan Weijian.
Summary
Hong Kong-based alternative investment manager PAG has secured over $1 billion in its first closing for a new pan-Asia real estate fund targeting core-plus assets across the region. The PAG Real Estate Partners fund held its initial closing in recent weeks and is on track for a final closing scheduled for June 2016, according to PERE. The firm is targeting total capital commitments of $1.2 billion for the vehicle, which will focus on property investment opportunities in China, Japan, and Australia with expected net returns of 10–13% for investors.
The fund will be managed by PAG partner Broderick Storie under the firm's PAG Real Estate division. Core-plus real estate vehicles typically seek high-value assets in prime urban locations while accepting greater risk than pure core funds by investing in property renovations or acquiring assets in fringe locations expected to develop into core markets. This strategy allows managers to target higher returns than traditional core-focused approaches.
The real estate fund launch builds on PAG's recent momentum in capital raising. In January 2016, the firm closed its PAG Asia II LP private equity buyout fund after raising $3.6 billion—the fund's second pan-Asia vehicle and achieved a single closing after reportedly being oversubscribed. The timing underscores PAG's ability to attract institutional capital across multiple asset classes in Asian markets.
The combined fundraising activity has expanded PAG's total assets under management to over $15 billion across its private equity, real estate, and absolute return investment vehicles. PAG, formerly known as Pacific Alliance Group, is led by Shan Weijian, a former TPG executive who founded the firm to focus on pan-Asia alternative investments.
The fund will be managed by PAG partner Broderick Storie under the firm's PAG Real Estate division. Core-plus real estate vehicles typically seek high-value assets in prime urban locations while accepting greater risk than pure core funds by investing in property renovations or acquiring assets in fringe locations expected to develop into core markets. This strategy allows managers to target higher returns than traditional core-focused approaches.
The real estate fund launch builds on PAG's recent momentum in capital raising. In January 2016, the firm closed its PAG Asia II LP private equity buyout fund after raising $3.6 billion—the fund's second pan-Asia vehicle and achieved a single closing after reportedly being oversubscribed. The timing underscores PAG's ability to attract institutional capital across multiple asset classes in Asian markets.
The combined fundraising activity has expanded PAG's total assets under management to over $15 billion across its private equity, real estate, and absolute return investment vehicles. PAG, formerly known as Pacific Alliance Group, is led by Shan Weijian, a former TPG executive who founded the firm to focus on pan-Asia alternative investments.
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