PAG raises $432 million in first yuan-denominated buyout fund, sources say
HONG KONG, June 25 (Reuters) - Asia-focused investment firm PAG has raised 3.1 billion yuan ($432 million) in the first close of its inaugural yuan-denominated buyout fund, exceeding its target, two people with knowledge of the matter said, as it looks to deepen investments in China.
The fundraising comes amid a slowdown in China's dealmaking, pressured by economic headwinds and geopolitical tensions that have deterred many western investors from the world's second-largest economy.
Private equity-backed deals targeting Chinese companies totalled $8.1 billion in the first half of 2025, the lowest level for the period since 2013, preliminary data from LSEG showed.
PAG's private equity arm, led by veteran dealmaker Shan Weijian, has secured anchor investment for the yuan fund from the government of Suzhou, a city in China's eastern Jiangsu province, the sources said.
Other investors in the fund include a number of Chinese insurance companies, they added.
PAG is still fundraising, but first-round commitments have surpassed its initial target of 3 billion yuan, the sources said, who declined to be identified as the information is not public.
Private equity funds typically begin investing after their first close.
PAG, which manages more than $55 billion of assets with its main offices in Tokyo, Hong Kong and Singapore, declined to comment.
In April 2024, public disclosures on a Suzhou government-affiliated website showed that Suzhou Xiangcheng Fund Management Co planned to commit to a PAG fund, which has an estimate size of 3 billion yuan.
Suzhou Xiangcheng Fund Management did not answer calls seeking comment.
The government of Suzhou did not immediately respond to a faxed request for comment.
Only three China-focused private equity funds, including all currencies, have been raised so far this year, totalling a mere $140 million, Preqin data showed.
Overall fundraising has been on a sharp decline since 2021, from $129 billion in 2021 to $11 billion in 2024, the data showed.
PAG and other buyout firms that have traditionally relied on U.S.-based investors for their Asia-focused funds have increasingly turned to domestic capital for China deals over the past three years.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
3 hours ago
- Daily Mail
Moonbeams Murray coming out of his cave makes the sober approach of Rangers' new regime all the more welcome, writes GARY KEOWN
No wild promises, talk of 'low-ego decision-making', a clear statement that this is about 'sustained winning and winning sustainably' rather than chucking money around willy-nilly, a determination to create a meritocracy in which a team of the best-available people will be 'empowered' to make decisions and then held accountable. That was the sales pitch chairman Andrew Cavenagh and vice-chair Paraag Marathe made to shareholders at the Rangers EGM as their consortium's £20million investment was rubberstamped last Monday. And you know what? From initial reactions, it feels like this was exactly the kind of sensible, bluster-free presentation that fans of the Ibrox club wanted to hear after a decade and more of disaster and chaos.
Auto Blog
3 hours ago
- Auto Blog
Mercedes-AMG Rivals Should Fear the Specs of the Radical Concept GT XX
The EV four-door race has begun The competition in the world of high-performance electric sedans is heating up, and two of its hottest competitors cannot be any more different from each other. In the blue corner is the Porsche Taycan Turbo GT. When it debuted, the Porsche's hardcore 1,093 horsepower super electric sedan achieved a record-setting lap time around the Nürburgring. However, in the red corner is the Xiaomi SU7 Ultra, the first high-performance vehicle from an emerging Chinese consumer electronics giant-turned EV powerhouse. Despite being a fraction of the Porsche's price, Xiaomi's SU7 Ultra managed to pack more power and beat not only the Porsche on the Nordschleife, but also vehicles costing upwards of seven figures. Now, Mercedes-AMG has an answer to both. In the past, it shoehorned lots of horsepower under the hood of luxurious Mercedes-branded vehicles, but recently, it turned a heel toward electrification. The culmination of this is showcased in what it calls the Concept AMG GT XX. The EV from Affalterbach In an announcement on June 25, Mercedes-AMG virtually unveiled its latest creation, a fastback-styled high-performance electric sedan called the Concept AMG GT XX. According to the boffins at Affalterbach, the concept is meant to preview the first vehicle built on its dedicated, AMG-specific AMG Electric Architecture ( ) EV platform. Underneath its skin, the GT XX's advanced electric platform features an 800-volt architecture capable of high performance even while charging. AMG says that the GT XX is powered by a bespoke NCMA battery pack that uses Formula 1 technology and features direct-cooled cylindrical battery cells for better heat management. Additionally, it can be charged up to add nearly 250 miles (400 km) of range in about five minutes at 850 kW. Autoblog Newsletter Autoblog brings you car news; expert reviews and exciting pictures and video. Research and compare vehicles, too. Sign up or sign in with Google Facebook Microsoft Apple By signing up I agree to the Terms of Use and acknowledge that I have read the Privacy Policy . You may unsubscribe from email communication at anytime. Power goes to all four wheels through two electric drive units (EDUs), which together contain three axial-flux electric motors: two located at the rear and one at the front. All together, the trio of motors makes for a top speed of 223 miles per hour and a combined 1,340 horsepower, which is about 247 more than the Porsche's output of 1,093 horsepower, but still short of the Xiaomi SU7 Ultra's 1,548 horsepower. AMG says that these oil-cooled electric motors are efficiently integrated within the EDUs, and each is equipped with its own planetary gearset and water-cooled inverter. Mercedes describes these EDUs working together as an all-wheel-drive system featuring torque vectoring and full-on disengagement that operates in accordance with driving conditions. The rear motors serve as the car's primary power source, while the front EDU disengages during coasting and low-speed cruising to optimize efficiency. A unique, but aerodynamic face From the pictures, the CONCEPT AMG GT XX is a striking sports car design that combines a few unique design languages to turn heads with its fastback shape, low hood, and sleek windshield, all highlighted by a vibrant sunset beam orange finish. From the front, the GT XX features a flat and wide profile signature and distinctive Mercedes design cues like its oversized grille with an integrated Mercedes star, as well as motorsport-inspired details, like air outlets in the hood to optimize airflow and a prominent front splitter that enhances aerodynamics. The side profile looks eerily similar to Xiaomi's SU7 from certain angles, and the rear is defined by a triple set of circular taillamps, a wide carbon diffuser, and an active airbrake. Source: Mercedes-Benz The Concept AMG GT XX even has speakers in its headlights, which pump out ambient driving sounds to keep pedestrians aware of its presence and enhance the driving experience. Despite its funny looks, AMG says that the GT XX is very aerodynamic. It claims a drag coefficient of 0.198, which makes it more aerodynamic than the limited edition AMG ONE and Tesla Model S, and is close to other contemporary EVs like the Xiaomi SU7 and the Lucid Air. AMG claims that the secret to the magic number is aerodynamic retractable wheel covers. These covers consist of five carbon-fiber panels that form a star shape and move outward and retract electrically as needed for brake cooling or optimal airflow. Inside, the AMG GT XX features carbon fiber bucket seats with racing harnesses and custom cushioning that can be made from a customer's body scan for optimum bolstering. To keep with the theme of efficiency, the textiles used in the interior are made with worn GT3 race tires, while hints of orange add a pop of color to the otherwise dark cabin. Like with most EVs, a large dual-tablet display is the centrepiece in front of the driver, and an F1-style yoke steering wheel with twistable selectors and paddle shifters adds more racing flair. Final thoughts Mercedes-AMG has not released any details on when a production version of the AMG GT XX will be released, but it is expected that many of the details will be incorporated into the final version for series production. In its statement about the car, Mercedes-AMG CEO Michael Schiebe defended that the car 'is a true AMG with every fiber of its being,' adding that 'the heart of an AMG was always the motor, and that will remain so with our in-house electric architecture.' Though it may be a tough sell to AMG loyalists, the Concept GT XX shows that Affalterbach is primed and ready to play ball in any game it can get in on, even if it includes electrons. About the Author James Ochoa View Profile
Reuters
5 hours ago
- Reuters
UK junior trade minister visits Taiwan
LONDON, June 29 (Reuters) - British junior trade minister Douglas Alexander is visiting Taiwan for talks on Sunday, the UK government said, on a trip that is aimed at boosting trade with Taipei but is likely to anger China. China claims democratically governed Taiwan as its own territory and strongly objects to any official interactions between the island and foreign governments, believing them to represent support for Taiwan's desire to be recognised as an independent country. Britain only has formal diplomatic relations with Beijing, but maintains a de facto embassy in Taipei. Junior British ministers hold talks with their Taiwanese counterparts but by convention senior ministers do not meet Taiwanese officials. Alexander's trip comes at a time when Britain and China are looking to mend ties, with Prime Minister Keir Starmer expected to visit Beijing this year on the first trip by a British leader since 2018. But despite those efforts, tensions remain. Last week, China's military criticised the sailing of a British warship through the Taiwan Strait as a deliberate attempt to "cause trouble". Alexander will be in Taiwan for annual trade talks on June 29-30, the Department for Business and Trade said. He will witness the signing of UK-Taiwan trade partnership pillars, and meet President Lai Ching-te as part of Britain's "long-standing unofficial relationship" with Taiwan, it said. "We share a long-standing trade relationship with Taiwan and our trade reached an all-time high last year, but we know there are still more opportunities for British businesses," Alexander said in a statement.
