Baring Private Equity Asia raises $1.52 billion

Barings Private Equity Asia, which has over $2.5 billion in assets under advisory, has raised $1.52 billion, thus becoming the largest regional growth equity fund in Asia.

At a time when the highly leveraged US and European buyouts are showing signs of stress, private equity funds focused on growth investing in Asia, a strategy which largely does not use financial leverage, are continuing to attract interest from around the world.The fourth fund from Baring Asia had an original target of $1 billion, but raised its fund raising limit to account for the high investor demand. It had to still turn away a substantial amount of investors.

The fund is targetting companies in the alternative energy, media, financial services, consumer and industrial sectors, with operations in China, India, Japan, Singapore, Hong Kong and Taiwan. It plans to invest around $500-750 million in India.

The fund's prominent investments in the country cover brokerage houses Sharekhan ($65 million) and Karvy Stock Broking ($44 million), IT company Mphasis BFL (partially exited), Bhushan Power & Steel Company, and edible oil player KS Oils.

Baring has been investing in the Asian region since 1998. It has an active portfolio of 28 companies and its combined revenues stood at $4.5 billion for 2007.