Connecticut investment firm Flag Capital will assume a Cantonese flavor in 2013 after it buys Hong Kong private equity firm Squadron Capital. Flag announced today that it has agreed to buy Squadron from Search Investment Group, and the deal is expected to close at the end of this year.

Squadron has $1.5 billion in assets under management, which it invests in private equity funds and direct investments across the Asia Pacific region. Its clients are institutional investors and high net worth individuals from around the world. Flag will add this to its $4.7 billion in assets under management and expand its presence in Asia.

Search Investment Group was founded by Rover W. Miller, the founder of Duty Free Shopping outlets. The terms of the deal were not disclosed. Read the press release.