Blackstone raises record $13.1 bn for its largest Asia private equity fund

Alternative asset manager Blackstone said on Tuesday it has raised $13.1 billion for its Asia private equity fund, exceeding its initial target and marking its largest such fundraise in the region.

 

The fundraising reflects strong investor interest in Asia despite global volatility fuelled by the Iran crisis, and comes a month after Sweden-based EQT AB raised $15.6 billion to create the region's largest private equity fund.

 

Blackstone, which was targeting $10 billion for the fund named Blackstone Capital Partners Asia III, said it has raised more than double the amount of its previous vehicle.

 

Global institutional and high-net-worth investors have looked to diversify from the US due to high valuations, inflation risks, and overall geopolitical uncertainty.

 

 

Asian markets such as Japan and India, which offer a steady pipeline of buyout and growth opportunities, have been a major focus for global asset managers.

 

"Asia Pacific is the fastest-growing region in the world, presenting compelling opportunities to invest at scale behind our high-conviction themes and deliver for our investors," said Joe Baratta, global head of Blackstone Private Equity Strategies.

 

Bain Capital has raised about $10.5 billion in its sixth pan-Asia buyout fund, while KKR & Co, which held the previous record in a $15 billion pan-Asia fund raised in 2021, is in the market to raise $15 billion for its next such vehicle, Reuters has reported.

 

Over the last two years, Blackstone has invested more than $7 billion in 12 deals in India and Japan, including companies such as Indian AI cloud platform Neysa and Japan's engineering services provider TechnoPro.

 

The asset manager firm also exited 15 companies during the period, including through the listings of the International Gemological Institute and Aadhar Housing Finance. 

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