Creador hits first close for fourth fund; Hong Kong PE firm PAG plans India entry
Photo Credit: Shah Junaid/VCCircle

South Asia- and Southeast Asia-focused private equity firm Creador has marked the first close of raising money for its fourth fund at $430 million, financial news site DealStreetAsia said it has learnt.

Creador is expected to make the final close in October, according to the report.

In February, VCCircle reported that the PE firm is looking to raise $500 million for the fourth fund.

Creador had raised about $420 million for its third fund. It had mopped up $330 million for the second fund, with a top-up of $30 million in late 2014, besides mobilising $135 million for the first fund in 2011.

In another development, Hong Kong-based private equity firm PAG, which focuses on Asia, is planning to enter India and is in the process of setting up its leadership team, Mint reported, citing two people aware of the development.

Hong Kong-based PAG manages funds in private equity, real estate and absolute-return strategies. It has more than $20 billion in funds under management.

Founded in 2002, PAG has over 350 employees across Hong Kong, Shanghai, Beijing, Shenzhen, Tokyo, Singapore, Sydney and Seoul, according to its website.

Separately, city gas distribution firm Gujarat Gas Ltd is looking to pick up the entire 50% stake of GAIL Gas in Vadodara Gas Ltd, Mint reported, citing three government officials aware of the development.

GAIL Gas is a wholly owned subsidiary of state-owned GAIL (India) Ltd.

The estimated deal size is Rs 200-250 crore, the report said.

Vadodara Gas is an equal joint venture of GAIL Gas and local civic body Vadodara Municipal Corporation.

The report said a clause in the joint venture agreement prevents both partners from selling more than 20% stake each in the entity.

Vadodara mayor Jigeeshaben Jatinbhai Sheth told the financial daily that he has received proposal from GAIL Gas for a change in the clause in order to sell its entire stake to Gujarat Gas.

He added that the civic body will decide on the matter within a month.

In another development, budget hotel chain Ginger Hotels is looking for a leaseback arrangement at six of its properties, The Economic Times reported, citing people aware of the development. In a leaseback agreement, an asset's seller leases back the property from the purchaser. This kind of an arrangement is opted for when a company needs to use the cash locked in an asset, but that asset is still needed for operations.

Consulting firm Horwath HTL has received the mandate from Ginger Hotels to conduct the leaseback, according to the report.

Roots Corporation Ltd, a subsidiary of Indian Hotels Company Ltd, owns and manages the Ginger brand of hotels. It has 45 hotels across 32 cities in the country.

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