Asia-Pacific focused fundraising raised $18.2 billion in the first half of this year, $4.4 billion less than the same period a year ago, according to preliminary PEI data.
Thirty-two funds had closed on $18.2 billion as of 2 July, against 43 funds that raised $22.6 billion in the same period last year.
The three largest funds collected $10.1 billion among them, or close to 60 percent of the aggregate amount raised for the region. Carlyle Asia Partners V was the largest fund to close, amassing $6.55 billion for its latest Asia buyout fund that excludes Japan. Blackstone Capital Partners Asia, the firm’s first Asia dedicated fund, comes next, collecting $2.3 billion. Australia’s BGH Capital Fund I takes the third spot, with approximately A$2.6 billion ($1.9 billion; €1.6 billion), the biggest debut fund in Australia.
Multi-regional funds or funds that invest into a number of select countries accounted for 59 percent of capital secured. China-focused funds made up 20 percent, while pan-Asian funds constituted 11 percent of aggregate capital raised.
Niklas Amundsson, managing director of placement firm Monument Group said: “KKR’s $9.3 billion Asian Fund III was a large contributor to last year’s first-half fundraising total. In addition, buoyant fundraising in Japan drove H1 numbers. There was a lot of capital raised for Japan-focused funds last year, that’s another element we don’t have this year.”
“The dip we are seeing in the first half of the year is related to the cyclicality of the larger funds being in the market. I would expect 2018 overall to be slightly higher in fundraising totals compared to last year,” he added.
On China fundraising, John Fadely, partner and co-chair of investment funds practice group at Gibson, Dunn & Crutcher, told Private Equity International that GPs have for some time moved away from growth capital and traditional industries and shifted towards TMT and healthcare. “The movement has been towards Chinese consumer spending as well as control transactions and GPs having more influence over their portfolio companies.”
Meanwhile for pan-Asia fundraising, Fadely noted that there’s enough capital to go around the global firms and homegrown players. “The pan-Asia players based in the region will generally do well assuming the performance of their prior funds is strong and also because of investor conviction about the people who are in charge of those teams.”
Pan-Asia players on the fundraising trail include Baring Private Equity Asia, which is reportedly seeking $5.5 billion for its seventh flagship vehicle, and PAG which is looking to raise $4.5 billion for its third buyout fund, media reports indicated.