Asia fundraising down 30 percent in 2012

Investor sentiment in Asia's two largest markets was down significantly in 2012, reflected in the steep drop in fundraising. However, KKR managed to raise the region’s largest fund ever.

Fundraising totals for Asia reached $31 billion for the full year 2012 across 76 funds, according to Private Equity International’s data division. 

The total represented nearly a 30 percent fall from 2011, when the total raised was $43.2 billion across 126 funds.

Asia’s top five funds in 2012 ($bn)

KKR   6
PAG 2.5
Bain Capital 2.3
CITIC PE 1.6
FountainVest 1.35

Source: PEI’s data division

The highlight of 2012 was a $6 billion Asia fund from Kohlberg Kravis Roberts, which reportedly closed in December. It is the largest fund ever raised for the region.

The amount of funds raised for China and India dropped dramatically as the macro-economics in those two markets impacted negatively on investor sentiment. 

In China, fundraising figures for US dollar and RMB vehicles combined declined more than 50 percent this year to $12.1 billion from $26.5 billion in 2011. 

India fundraising was on a similar downward slope, with the amount of capital raised for the country declining 60 percent to $1.67 billion, compared to $4.26 billion in 2011.