PAG (investment firm)

The origins of PAG come from Pacific Alliance Group, a multi-strategy hedge fund co-founded by Chris Gradel and Horst Geicke in 2002. It currently forms PAG’s Credit & Markets business. Millennium Management was one of the initial investors of the firm and went on to invest $150 million for a 20% stake in the firm before Gadel bought it back in 2009. [1][5][6][7]

The Real Assets business grew out of Secured Capital Japan, co-founded in 1997 by Jon-Paul Toppino, a Japanese real estate management company listed on the Tokyo Stock Exchange. In March 2009, PAG acquired a 40% stake in Secured Capital via a convertible bond deal of $46 million. In November 2010, PAG acquired the remaining shares of Secured Capital. [1][5][6][7][8]

In July 2010, Weijian Shan joined PAG and established the private equity business of the firm.[1][5][7]

In the same year, Gradel, Shan and Toppino brought their respective strategies together under the PAG brand.[1][5][7]

In 2011 the firm rebranded from Pacific Alliance Group to PAG.[1]

In March 2018, the Blackstone Group acquired a minority stake in PAG.[9][10][11]

In 2019, PAG formed Polymer Capital Management, a long/short equity hedge fund.[12]

In March 2022, PAG filed for an initial public offering (IPO) in Hong Kong aiming to raise $2 billion. However in August 2022, it was reported that it would delayed due to market conditions. [5][11][13]

PAG has three main strategies, namely Private Equity, Real Assets and Credit & Markets.[1][5]

Its flagship funds are PAG Asia Capital and PAG Growth Capital. [5]

On 13 December 2013, PAG invested $250 million into theme park operator Universal Studios Japan. Other investors in the deal included Goldman Sachs, MBK Partners and Owl Creek.[17]

On 16 June 2014, TPG Capital, PAG and Ontario Teachers’ Pension Plan acquired DTZ from UGL Limited for an enterprise value of US$1.215 billion. On 11 May 2015, DTZ merged with Cushman & Wakefield in a $2 billion deal. On 2 August 2018, Cushman & Wakefield held an IPO and was listed on the New York Stock Exchange under the symbol “CWK”.[18][19][20]

On 27 June 2014, PAG acquired Commerzbank's Real Estate subsidiary in Japan including a EUR700 million ($954 million) Japanese mezzanine property loan portfolio.[21]

On 21 October 2014, PAG's Secured Capital announced sale of Pacific Century Place Marunouchi in Japan to Singapore's sovereign wealth fund, GIC for US$1.7 billion (S$2.2 billion).[22][23]

On 5 January 2016, Chinese milk firm Yili Group sold all its remaining right on China Youran Dairy Group to Yogurt Holding I (HK) Limited, a subsidiary of PAG.[24]

On 20 April 2016, Apex Technology and PAG acquired Lexmark for US$3.6 billion.[25][26]

On 2017, PAG acquired Yingde Gasses, largest independent industrial gases producer in China.[27]

On 11 April 2018, PAG and Joyson Electronics funded Key Safety Systems to successfully complete the acquisition of Air-Bag Maker, Takata for $1.588 billion. The combined company was rebranded Joyson Safety Systems.[28][29]

On 12 July 2019, PAG acquired Craveable Brands from Archer Capital for $450m.[30]

On 27 August 2020, PAG acquired a 51% stake in Edelweiss Wealth Management (EWM), the second largest non-bank wealth management business in India for US$300 million (INR 22 billion).[31]

On 19 November 2020, PAG signed an agreement to invest up to AUD150 million in Regional Express Airlines (REX) to support the launch of Rex's domestic jet operations scheduled to commence on 1 March 2021.[32][33]

In April 2021, PAG was merging Yingde Gases Group with Shanghai Baosteel Group, in preparation for a $10 billion offshore IPO.[34] In the same year, PAG completed the acquisition of % Arabica.[35]

In August 2022, PAG announced it has entered into an agreement with H.I.S. Co., Ltd. to acquire Huis Ten Bosch, one of Japan’s largest theme parks, for $480 million.[36]

In September 2022, PAG entered into agreements to acquire Patties Foods and Vesco Foods, two leading Australian companies in the food and consumer sector.[37]

In August 2023, it was reported that PAG would acquire Kohlberg Kravis Roberts' controlling stake in Australian Venue Co. for about A$1.4 billlion.[38][39]

• Official website
• www.polymercapital.com (Polymer Capital Website)