Blackstone’s largest Asia private equity fund gets $13.1 billion
Alternative asset manager Blackstone announced on Tuesday that it has successfully raised $13.1 billion for its Asia private equity fund, surpassing its initial target and achieving its largest fundraising effort in the region to date. The fundraising demonstrates robust investor interest in Asia, even amidst global volatility driven by the Iran crisis. This development follows a month after Sweden-based EQT AB successfully raised $15.6 billion to establish the largest private equity fund in the region. Blackstone, which aimed for $10 billion for the fund known as Blackstone Capital Partners Asia III, announced that it has secured more than double the amount raised by its prior vehicle.
Global institutional and high-net-worth investors have sought to diversify away from the US, driven by elevated valuations, inflationary pressures, and a backdrop of geopolitical uncertainty. Asian markets, particularly Japan and India, present a consistent stream of buyout and growth opportunities, capturing significant attention from 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,” stated Joe Baratta. Bain Capital has successfully raised approximately $10.5 billion for its sixth pan-Asia buyout fund.
In contrast, KKR & Co, which previously set the record with a $15 billion pan-Asia fund in 2021, is currently seeking to raise $15 billion for its upcoming fund, according to reports. In the past two years, Blackstone has allocated over $7 billion across 12 transactions in India and Japan, encompassing firms like the Indian AI cloud platform Neysa and Japan’s engineering services provider TechnoPro. The asset management firm also divested from 15 companies during the period, including through the public offerings of the International Gemological Institute and Aadhar Housing Finance.
