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Blackstone raises $9.4 billion for Asia real estate, private equity funds

Reuters  |  HONG KONG 

By and Julie Zhu

HONG KONG (Reuters) - said it has raised about $9.4 billion for two new funds - the largest-ever fund dedicated to investments in as well as its first fund for the region.

The funds add to a massive industry-wide pool of for Asian acquisitions and investments, with investors attracted by rapid economic growth compared to other major markets.

It raised $7.1 billion for what it called its second regional "opportunistic" fund. Growing urbanisation and rising incomes, particularly in and India, have boosted investor appetite for shopping malls, warehouses and other property assets.

"The size of this fund...gives us flexibility to pursue a range of opportunities and commit capital with speed and scale," Ken Caplan, of Estate, said in a statement.

Blackstone's business was founded in 1991 and has about $120 billion in capital under management. The portfolio includes hotel, office, in the United States, Europe, and

Its first Asia-focused property fund, which closed in 2014, raised $5.08 billion.

The Asian fund closed at about $2.3 billion, Blackstone said, adding that it now has at least $3.8 billion to invest in equity when "associated commitments" from its global buyout fund are counted.

Roughly two-thirds of the fund, as well as the contribution from its global fund, will be used to invest in and India, said one person with direct knowledge of the matter, declining to be identified as details of the plans were not made public.

The fund will focus on buying controlling or significant minority stakes in sectors such as healthcare, high-end and services, as well as goods and services geared to consumers who want to upgrade their lifestyles, people familiar with the plan told last year.

Blackstone, whose previous private equity investments in Asia were from its global funds, did not immediately respond to a request for comment on its capital deployment plans.

Asia private equity deals have increased in size following corporate restructuring and as global funds become more established players in key markets such as China, and

Rival is set to close its biggest Asia private equity fund at $6.5 billion, reported last month, after other global groups including raised fresh capital.

Hong Kong-based private equity firm PAG is planning a new Asia fund that aims to raise as much as $6 billion.

Last year, a total of 342 funds raised a combined $107 billion in Asia, according to data provider

(Reporting by and Julie Zhu; Additional reporting by Kane Wu; Editing by Edwina Gibbs)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, June 13 2018. 12:38 IST
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