China's largest insurer Ping An Insurance Group said Monday that its offshore investment and asset management unit and its subsidiaries have closed two funds, representing $875 million of total capital, that are part of the company's first investment program dedicated to private equity investing abroad.
The two funds, Ping An Global Equity Selection Fund and the Ping An Global Equity Fund, were both created as part of Ping An Insurance Overseas Holdings’ efforts to take advantage of offshore opportunities on behalf of investors.
The capital commitment came from a group of international investors, Ping An said, adding that the main investors were Singapore-based GIC and Switzerland-based Montana Capital Partners, with Ping An Overseas acting as a limited partner in the funds.
“The successful closing of the Selection Fund and the Global Equity Fund is an important milestone of Ping An Overseas Holdings' strategic transition from an in-house investment platform into an asset management franchise serving third-party investors” said Hoi Tung, CEO of Ping An Overseas Holdings and a member of Ping An Group's investment committee.
“With our diversified product offerings, high-quality investment execution, and robust decision-making process, I am confident that Ping An Overseas Holdings can continue to offer investment opportunities with compelling risk-adjusted returns to our third-party investing partners,” Tung added.
The Ping An Global Equity Selection Fund is set to manage “a fund of funds program that was invested by Ping An into a well-diversified portfolio of top-tier buyout managers in North America and Europe and was transferred as part of a secondary transaction,” while the Global Equity Fund is meant to leverage Ping An Overseas’ network of global partnerships to find co-investment opportunities.
"Since inception, Ping An Overseas Holdings' private equity team deployed a dual strategy of fund/co-investing in the overseas markets, and direct investing in the Greater China region,” Ping An Overseas Holdings' Head of Private Equity Kaipin Kui said. “The closing of the funds represents our success of translating that strategy into market endorsement and recognition.”
Co-Founder and Managing Partner of Montana Capital Partners Dr. Marco Wulff added on the closing of the two funds, "We strongly believe that the underlying high-quality fund assets will show robust performance even in a difficult economic environment.”