APAC H1 fundraising rebounds

Fundraising in the region picked up in the first six months of 2017 compared to the same period a year ago, largely boosted by KKR’s $9.3bn pan-Asian fund.

Asia-Pacific focused fundraising more than doubled in the first half of 2017 compared to a year ago,  PEI  data show.
 
Forty-three funds closed on $22.6 billion as of 1 July this year, against 27 funds collecting an aggregate of $9.6 billion last year.
 
The jump in fund size could be attributed to the three largest funds that raised almost half of the aggregate amount. KKR Asian Fund III is the largest fund to close this year, amassing $9.3 billion against a $7 billion target in June. CITIC Capital China Partners III comes next, collecting $1.6 billion before H1 ended, while fund of funds manager Axiom Asia takes the third spot, gathering $1.03 billion for Axiom Asia V in January.
 
It is worth noting that the pan-Asian players were busiest in the first six months of 2017 and will likely continue to be so for the remainder of the year. Close to 150 Asia-Pacific focused funds targeting $44 billion are in market as of 1 July, against 40 China-focused funds eyeing $16.5 billion, PEI data show.
 
The biggest regional fund in market is TPG Asia VII, which is targeting $4 billion and has already received a $100 million commitment from New Mexico State Investment Council, according to PEI data. Other GPs on the fundraising trail are The Caryle Group, which has a $1 billion target for its fifth Asia growth fund, Morgan Stanley Partners, which is seeking $2 billion for its latest Asia vehicle, as well as L Catterton, looking to raise $1.25 billion for its third Asian buyout fund.
 
Of the current funds in market in Asia-Pacific, China-focused funds are targeting on average $390 million, dwarfing the rest of the regional players. Meanwhile funds with a Pan-Asia focus are seeking $280 million on average; India-focused funds, $140 million; and Australia-focused funds the smallest, at $100 million.
  
Despite fundraising trending upwards in H1 2017, Asia-Pacific focused private equity fundraising has declined significantly since the post-global financial crisis high in 2011 when 255 funds focused on Asia collected an aggregate of $71.3 billion.
 
The number of funds closed plummeted to 105 funds, raising $40 billion in 2012, and has since fallen to 70 funds collecting $44.9 billion in 2016, in large part due to the instability in the global market and worries over the Chinese economy and its impact in the region,  PEI  data show.