Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

RPT-TPG sells HCP Packaging, returns $1.6 bln to investors in Asia

Published 17/12/2015, 09:32 am
© Reuters.  RPT-TPG sells HCP Packaging, returns $1.6 bln to investors in Asia
BTPN
-
HSO
-

(Repeats story published late Wednesday; no changes to text)

* TPG Asia VI invested $577 mln in 2015-letter to LPs

* Sold HCP to Baring Asia for $775 mln - sources

* TPG returned $225 mln to investors from BTPN deal-letter

By Lisa Jucca

HONG KONG, Dec 16 (Reuters) - Private equity firm TPG Capital Management has sold Chinese company HCP Packaging to Baring Asia, returning $1.55 billion in total to investors in 2015, an annual letter to its limited partners reviewed by Reuters showed.

The deal, signed in December, is one of 14 TPG was able to close across eight Asian countries this year despite choppy markets.

Private equity firms including TPG TPG.UL , Bain, Baring Private Equity Asia and KKR have all launched multi-billion dollar specialised funds to target growth in the region. But exiting some of these businesses has proven tough given extreme market volatility in Asia this year.

TPG had acquired HCP, which designs luxury lipstick and make-up containers for cosmetics makers such as L'Oreal, Revlon and Shiseido, from members of the founding Chen family in 2012 through its Asia V fund.

It sold the company to Baring Asia for $775 million, sources familiar with the issue told Reuters.

Among its other profitable Asian exits, a sale of a 17.5 percent stake in Indonesian bank BTPN BTPN.JK allowed TPG to distribute $225 million to investors from that deal alone, according to details in the letter.

Other key exits included the sale of a stake in Australian healthcare operator Healthscope HSO.AX months after the company was listed in July.

TPG, which manages around $70 billion of assets globally, declined to comment. Baring Private Equity Asia also declined to comment.

VOLATILE MARKETS

The U.S.-based private equity player established its presence in Asia in 1994 to tap opportunities in high-growth markets. It has launched six funds in Asia. The latest, Asia VI, has raised more than $3 billion.

Despite volatile markets and uncertainty around China's economy, TPG invested $577 million from its Asia VI fund in 2015, bringing the total invested capital to $1.4 billion, according to the letter. An additional $338 million was co-invested.

The fund targets Asia's rising middle-class by focusing on consumer demand, healthcare and financial services.

Unusual for Asia where minority investments by foreign players are the norm, TPG has effective control of around 93 percent of the portfolio of its Asia VI fund.

Other relevant transactions carried out by TPG this year were the purchase of 50 percent of spirit maker Myanmar Distillery, which together with an investment in telecom infrastructure group Apollo Towers Myanmar makes TPG one of the most active private equity investors in the country.

Looking ahead, TPG anticipates more volatility and uncertainty, but has pledged not to shy away from interesting buys.

"We anticipate the current climate of uncertainty to continue into 2016, creating more unique opportunities for us to explore," TPG said in the letter to investors. (Editing by Muralikumar Anantharaman)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.