BEIJING, PEOPLE'S REPUBLIC OF CHINA (28 July 2021) — The Asian Development Bank (ADB) signed a $50 million equity investment in PAG Growth II L.P. (PAG Growth II, the fund), a private equity fund managed by investment firm PAG, to promote innovation and provide growth capital for businesses in key economic sectors in Asia and the Pacific, predominantly in the People’s Republic of China. 

PAG Growth II will seek to invest in businesses operating primarily in the health care, financial services, and education sectors.

“Through PAG Growth II, ADB will help improve access to financing for mid-sized companies, particularly in secondary and tertiary markets where the availability of equity capital is limited for this size of company,” said ADB Private Sector Investment Funds and Special Initiatives Division Director Janette Hall. “The financing will help companies to realize their growth plans and achieve market-leading positions, while aiming to improve education and health outcomes in the region.”

ADB’s investment will help the fund to enhance its management of environmental and social issues, as well as adding value to underlying investee companies. Through its private equity fund investments, ADB can help promote the adoption and use of best practice Environmental, Social, and Governance standards. In this transaction, ADB incorporated gender targets to promote opportunities for women and girls.

PAG is one of Asia’s largest alternative investment managers, with approximately $40 billion in assets under management as of 31 December 2020. It employs approximately 200 investment professionals across 10 offices and manages investments across private equity, real estate, and private debt, as well as other strategies.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region. 

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