Blackstone hit a US$10 billion target for its latest Asia buyout fund as investors bet an entrenched India presence and expanding footprint in Japan will keep powering strong returns, people familiar with the matter said.
The world’s biggest asset manager was set to wrap up fundraising by the first quarter of next year, the people said. The New York-based firm was likely to reach its US$12.9 billion hard cap, the maximum set out in marketing materials, the people said, asking not to be identified because they’re not allowed to discuss the matter in public.
Blackstone attracted big backers after its second fund, which returned 41 per cent as of the second quarter and has handed in nearly 80 per cent of the pool, the people said. Asia II raised almost US$11 billion in 2021, including commitments from other Blackstone funds.
Blackstone’s fundraising comes as global investors are growing more cautious about private equity, with capital locked up for longer due to higher borrowing costs, fewer stock listings and declining secondary buyouts. Yet the largest alternative asset managers continue to attract commitments, leveraging their global reach, long track records and dedicated fundraising teams to stand out in a difficult market.
Among other buyout firms, EQT AB secured US$11.4 billion for its ninth Asia buyout fund by July, and plans to hit its US$14.5 billion hard cap in 2026, according to its first-half results. KKR & Co. gathered roughly US$14 billion ahead of the first close of its US$20 billion North American private equity fund, a sign of momentum in a difficult market, people familiar said in February.
For Blackstone, about 90 per cent of its previous Asia fund investors were back in the new pool, increasing their average commitments by about 30 per cent compared with the previous fund, one of the people said.
