Global private equity firm TPG Capital is buying a stake in Hong Kong-based hedge fund sponsor HS Group Ltd (HSG) and establishing a strategic relationship with the company, HSG said in a statement on Thursday.
The deal is TPG’s first dedicated Asia hedge fund investment and signals a move to diversify its range of alternative assets in the region, pushing into a sector where rivals like Blackstone Group LP and Goldman Sachs already have a strong presence.
Financial details of the deal were not disclosed.
TPG’s managing partner and co-head of Asia Tim Dattels will join the advisory board at HSG, which provides strategic capital and institutional guidance to emerging Asian hedge funds.
HSG recently announced a partnership with Pleiad Investment Advisors, a hedge fund founded by former China and Japan specialists at Soros Fund Management, Kenneth Lee and Michael Yoshino, who are both former TPG executives.
“Pleiad’s founders illustrate the caliber of HS Group’s investment pipeline, having succeeded at TPG in Asia, as well as Tiger and Soros,” said Dattels, the former head of investment banking for Asia ex Japan at Goldman Sachs.
Pleiad intends to launch in the third quarter with investments of over $150 million from its founding partners, HSG and affiliates. (Reporting by Stephen Aldred; Editing by Miral Fahmy)