FLAG Capital Management, a private capital investment manager, is to acquire Squadron Capital, a Hong Kong-based private equity investment firm with USD1.5bn in assets under management.
The transaction increases FLAG’s total AUM to over USD6bn and allows it to more effectively deliver global solutions in private equity, venture capital, natural resources and real estate.
The acquisition from Search Investment Group is expected to close on or before 31 December 2012. Terms of the deal were not disclosed.
The Squadron Capital team has been managing Asian private equity funds since 1989 and will bring complementary experience and networks to FLAG’s global footprint. Squadron Capital has one of the largest and truly pan-Asia teams in the region.
The structure of the deal, which integrates Squadron Capital’s team into FLAG, will ensure the continuity of management of the two firms’ investments in the region. It will also enable the merged entity to leverage complementary strategies and capabilities in marketing, distribution and back office functions.
David Pierce (pictured), chief executive officer of Squadron Capital, who will become a FLAG partner, says: "Squadron has one of the most experienced private equity fund of funds teams in Asia, and we are excited to be joining such a terrific organisation. Together we believe we can grow our combined business rapidly, benefiting from highly complementary relationships and business practices. FLAG’s brand, stellar industry reputation, 17-year track record and the scalability of its platform make it the perfect buyer for our business. They have a strong record of innovation and entrepreneurship that will help us take our investment platform to the next level and ensure we continue to deliver value for our investors."
"I am proud of the success of Squadron Capital and its growth into a premier Asian private equity investment firm," says Robert Miller, chairman of Search Investment Group. "I am delighted that we have reached a mutually beneficial agreement with FLAG for the purchase of Squadron, and can think of no better home for this business."
