Texas Pacific Group banks on Indonesia

Posted May 22nd 2007 4:23PM by Tom Taulli
Filed under: Private Equity

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 can 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 (subscription required) the firm has actually purchased a 72% stake in PT Bank Tabungan Pensiunan Nasional, which is a bank in Indonesia. In fact, the Indonesian government will maintain a stake in the bank.

The price tag is about $200 million or so -- 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%+, it should be a lucrative place for dealmaking.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

Tags: Indonesia, TPG