TPG has formed a strategic partnership HS Group. HS Group is an independent, institutional investment firm providing long-term capital and strategic guidance to emerging hedge funds in Asia.
HS Group Ltd. (“HSG”) today announces a strategic partnership with TPG Holdings, L.P. (“TPG”), a leading global private investment firm with over $59 billion of capital under management. Tim Dattels, Managing Partner and Co-Head of TPG Capital Asia, will join the fund’s Advisory Board, representing TPG’s investment. Prior to TPG, Tim was a Partner of Goldman Sachs & Co., where he was Head of Investment Banking for all Asian countries outside of Japan. TPG will also acquire an ownership interest in HSG. The transaction is subject to and conditioned upon shareholder approval. In addition, TPG’s Brooklands Capital Strategies, a division of TPG Capital BD, has entered into a referral agreement with HSG for institutional client relationships. Brooklands is led by Peter McMillan, long-time executive of TPG, and Dan Carroll, co-founder of the firm’s Asian operations (formerly Newbridge Capital) where as Managing Partner he was responsible for raising and investing five investment funds with over $7 billion in committed capital, as well as building the firm’s Asia-based investment teams.
TPG has extensive expertise across Asia and in sponsoring institutional hedge funds. TPG entered Asia in 1994 through the establishment of its affiliate Newbridge Capital, one of the first global private equity firms dedicated to the region. Today, TPG has offices in Hong Kong, Beijing, Shanghai, Singapore, Tokyo, Mumbai and Melbourne. TPG has completed a number of control and minority stakes in landmark transactions such as Lenovo, Korea First Bank, Shenzhen Development Bank, and Shriram Transport Finance. In 2013, TPG acquired Eze Castle Software, a premier provider of portfolio management technology.
HSG provides strategic capital and institutional guidance to Asia’s new generation of independent hedge fund leaders. HSG recently announced a partnership with Pleiad Investment Advisors (“Pleiad”), a hedge fund founded by former China and Japan specialists at Soros Fund Management, Kenneth Lee and Michael Yoshino, who began their investment careers at TPG Capital in Asia. Pleiad plans to launch in the third quarter of 2014 with commitments in excess of $150 million from its founding partners, HSG and affiliates.
Tim Dattels, Managing Partner and Co-Head of TPG Capital Asia, commented, “Asia’s hedge fund industry will see secular growth over the coming years, and HS Group’s relationships with the region’s strongest investment talent combined with institutional best practices complement TPG¹s vision for this industry. I am delighted to join V-Nee Yeh and HS Group in backing the next generation of hedge fund leaders in Asia. Pleiad’s founders illustrate the caliber of HS Group’s investment pipeline, having succeeded at TPG in Asia, as well as Tiger and Soros.”
Michael Garrow, Founder and CIO of HSG, said, “TPG has one of the longest-standing and most successful private investment franchises in Asia, and the quality of Tim’s relationships and insights is unparalleled. With TPG as strategic partner and Tim joining our Advisory Board, HS Group is well positioned to offer our investors attractive ownership participation in Asia¹s hedge fund growth.”
Johannes Kaps, Founder and CEO of HSG, said, “The combination of both TPG and Gottex Fund Management as institutional partners enhances HSG’s value proposition to hedge fund leaders with access to industry insights and a global investor base. HS Group’s hedge fund partners, such as Pleiad, can maximize their success in a region offering significant rewards to the top institutional managers.”
V-Nee Yeh, Chairman of HSG’s Advisory Board and Board member of the Columbia University Endowment, concluded, “TPG’s strategic investments in hedge funds have proven timely over the years. Tim and I share a common perspective on Asia’s institutional hedge fund opportunity and a philosophy to build value over the long term with the highest ethical standards. I look forward to collaborating with Tim and our other HS Group Advisory Board members.”
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About HS Group
HS Group is an independent, institutional investment firm providing long-term capital and strategic guidance to emerging hedge funds in Asia.
Based in Hong Kong, founders Michael Garrow and Johannes Kaps espouse governance principles of integrity, alignment, and fiduciary responsibility and believe investment excellence is sustained through both passionate commitment and rigorous process. The founders both spent formative years at Brown University and Morgan Stanley, followed by senior roles in Asia¹s hedge fund industry at Blackstone and Goldman Sachs, respectively.
TPG is a leading global private investment firm founded in 1992 with over $59 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Houston, Beijing, Chongqing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, São Paulo, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings. The firm’s investments span a variety of industries including healthcare, energy, industrials, consumer/ retail, technology, media & communications, software, financial services, travel, entertainment and real estate.