Flag Capital Management to snap up Asian PE investment firm Squadron Capital
24 October 2012
News, Asia, Hong Kong
By Asia Asset Management
Private capital investment manager Flag Capital Management (FCM) has reached a definitive agreement to acquire Squadron Capital, a Hong Kong-based private equity investment firm with US$1.5 billion in assets under management (AUM). The transaction increases FCM’s total AUM to over $6 billion and allows it to more effectively deliver global solutions in private equity, venture capital, natural resources and real estate. The acquisition from Search Investment Group is expected to close on or before December 31. Terms of the deal were not disclosed.
The Squadron Capital team has been managing Asian private equity funds since 1989 and will bring highly complementary experience and networks to FCM’s global footprint. Squadron Capital has one of the largest and truly pan-Asia teams in the region. The structure of the deal, which integrates Squadron Capital’s team into FCM, will ensure the continuity of management of the two firms’ extensive investments in the region. It will also enable the merged entity to leverage complementary strategies and capabilities in marketing, distribution and back office functions.
David Pierce, chief executive officer of Squadron Capital, who will become an FCM Partner, commented: “Squadron has one of the most experienced private equity fund of funds teams in Asia, and we are excited to be joining such a terrific organisation. Together we believe we can grow our combined business rapidly, benefiting from highly complementary relationships and business practices. FCM’s brand, stellar industry reputation, 17-year track record and the scalability of its platform make it the perfect buyer for our business. They have a strong record of innovation and entrepreneurship that will help us take our investment platform to the next level and ensure we continue to deliver value for our investors.”
“I am proud of the success of Squadron Capital and its growth into a premier Asian private equity investment firm,” said Robert Miller, chairman of Search Investment Group. He continued: “I am delighted that we have reached a mutually beneficial agreement with FCM for the purchase of Squadron, and can think of no better home for this business.” Search Investment Group continues to be a significant investor in the combined firm’s Asia private equity offerings and will enlist FCM in the management of the group’s significant global private equity investment portfolio.
The acquisition of Squadron Capital continues FCM’s history of prudent evolution and growth since it was founded in 1994. FCM and Squadron Capital serve a global investor base that includes private and public retirement plans, foundations, endowments and family offices. The integration of the two firms will enable current and future limited partners to benefit from some of the most attractive private capital strategies in today’s market globally. The combined firm will have greater resources on the ground, including teams with local knowledge and language skills, and a deep appreciation of the nuances of each market, thereby helping current and future investors to access difficult to reach sectors and geographies.
“At FCM, we strive to provide a range of approaches to private capital investing based upon the specific needs of our investors that are designed to generate superior long-term investment performance,” said Peter Lawrence, a founding partner of FCM. “The talented Squadron Capital team not only augments our Asia offering, but also adds professionals to our firm who will lend their expertise to our other global strategies.”
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