Blackstone To Raise $10 Billion In New Asia Fund Focused On India

Photo: Reuters/Jeenah Moon

NEW YORK, NY (REUTERS) – Blackstone Inc, the world’s largest alternative asset manager, has started raising its third Asia-focused private equity (PE) fund, targeting at least $10 billion, two people with knowledge of the situation said.

The new buyout fund, Blackstone’s third in Asia, will primarily focus on India with the largest percentage of capital allocated there, the sources said, declining to be named as they were not authorized to speak to the media.

China will not be a focus market for the new fund, the sources said.

Japan and Australia will be two other significant markets for Blackstone while it continues to look at other countries such as South Korea and Singapore, they said.

The capital allocations of Blackstone’s new Asia PE fund would not be set in stone, however, and strategy could shift based on the macroeconomic environment, one of the sources said.

The fundraising comes as global and regional investors seek new growth in Asia as investing in China has become challenging in recent years due to an economic slowdown, a regulatory crackdown and Sino-U.S. tensions.

Private equity-backed deals in mainland China totaled $27 billion in the first three quarters, down 9.5% year-on-year to be overtaken by Australia as the biggest market in Asia, LSEG data showed. China-focused private equity fundraising also dropped to the lowest in at least 10 years.

Blackstone said last year it was bullish on India due to its faster growth than other large countries.

New York-based Blackstone, which manages over $1 trillion in assets including real estate, closed its second Asia buyout fund at $11 billion in 2022.