As seen with Blackstone's mega investment from the Chinese government, private equity is setting its sights on Asia. While there are certainly risks, the rewards could be great.Interestingly enough, since the mid-1990s, the Texas Pacific Group (TPG) has been a big player in Asia. According to a report in The Wall Street Journal, the firm has now purchased a 72% stake in PT Bank Tabungan Pensiunan Nasional, which is a bank in Indonesia. The Indonesian government will also hold a stake in the bank.
The price tag is about $200 million, a fairly small amount for TPG.
Yet the deal should make it easier to get a footprint in the Indonesian market. It's also a sign that the political situation has stabilized. And with economic growth at 6% or better, it should be a lucrative place for deal-making.
Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.
