The largest alternative asset manager in the world, Blackstone Inc., has begun to raise its third private equity (PE) fund with an emphasis on Asia, with a minimum target of $10 billion.
The new buyout fund, which is Blackstone’s third in Asia, will largely concentrate on India and devote the greatest portion of cash there.
The new fund will not target China as a market. Blackstone is still considering other nations like South Korea and Singapore, but its two next major markets will be Japan and Australia.
Blackstone’s new Asia PE fund would not have fixed capital allocations and the approach would change depending on the macroeconomic climate.
Laptops 1000Blackstone did not respond to a request for comment.
The funding comes as global and regional investors seek new opportunities in Asia. Investing in China has proven hard in recent years due to an economic slowdown, a regulatory crackdown, and Sino-U.S. tensions.
According to LSEG data, mainland China’s total amount of private equity-backed deals in the first three quarters was $27 billion, a 9.5% year-over-year decline that saw Australia surpassing China as the largest market in Asia.
At $11 billion as of September 26, industry data provider Preqin reports that fundraising for private equity with a focus on China has likewise reached its lowest point in a decade.
Recently, however, investor perceptions of China have changed, with inflows fueling a rise in Chinese stock prices following the announcement by the government of a large-scale stimulus program that includes interest rate cuts and a $114 billion war chest to stimulate the economy.
