Asia fundraising continues decline

Funds raised for Asia Pacific during the first half of 2013 shows investor sentiment for the region remains low, according to data from PEI's Research & Analytics division.

Private equity funds in Asia Pacific raised just $12.4 billion during the first half of 2013, a slight (2.3 percent) decline from the $12.7 billion raised during the same period in 2011, according to data from Private Equity International’s Research & Analytics division. 

The continued slump in fundraising suggests that global LP sentiment toward Asia Pacific private equity is waning. First half figures for the last two years were down from the $19.7 billion raised during the first half of 2011, when institutional investors were rushing into Asia, in particular China. 

The capital raised during H1 2013 was only 6.3 percent of the $195.9 billion of capital being targeted by 434 funds in market in the Asia Pacific region.

The figures could rise significantly by the year’s end, however, as some firms near final closes. Kohlberg Kravis Roberts Asia Fund II has hit its $6 billion target but not made an official final close, according to sources close to the firm. 

MBK Partners’ latest North Asia buyout fund has also made a penultimate close on $2.3 billion and expects to reach its $2.6 billion hard cap soon, a source with direct knowledge of the matter told PEI

In a global context, the amount targeted by funds in market is the highest in Asia Pacific, according to the PEI data. 

North American private equity firms are currently targeting an aggregate amount of $186.9 billion, while European funds are currently raising $100.3 billion. The 199 global funds currently in market are targeting $165 billion in comparison. 

However, funds in other regions raised much more than Asia Pacific counterparts during the first half of this year. Global private equity firms raised $67.6 billion, just above the $62.6 billion raised by North American firms during the same period.

Western European, pan-European and Central and Eastern European funds raised $16.7 billion, $21.4 billion and $1.1 billion respectively. 

Asia Pacific Funds Raised (H1)   2013   2012   2011   2010 
 $12.4bn   $12.7bn   $19.7bn   $10.5bn

Source: PEI's Research & Analytics division