HONG KONG (Reuters) - Asia Alternatives, a regional private equity fund-of-funds (FOF) manager, said on Thursday it has raised about $1.8 billion for its most recent fund and associated vehicles, benefiting from increased demand for the relatively high returns promised by buyout deals and early-stage investing in Asian companies.
The move comes as private equity companies are raising record amounts of funds for investments in Asia, where deals are getting larger in size as buyouts increasingly aim to gain control of companies.
In June KKR & Co raised $9.3 billion for its most recent Asian buyout fund, an all-time high, with volumes seen growing further as TPG, Bain Capital and Blackstone Group LP all tap investors for their real estate, credit and buyout funds.
Investors in the latest fund, called Asia Alternatives Capital Partners V LP, included state and corporate pension funds such as Florida State Board of Administration, Boeing Co’s and Massachusetts Mutual Life Insurance Company, Asia Alternatives said in a statement.
“Looking back, this was our fastest, most efficient fundraise,” Rebecca Xu, co-founder of Asia Alternatives, said in an interview. “It certainly reflects an improved appetite from global investors in Asian private equity. Returns we’re able to generate really are key.”
“We’re starting to see stronger momentum in buyout, control deals in China,” Xu added. “It’s a long-term trend that’s here to stay. I don’t think it’s a cyclical phenomenon.”
Reporting by Elzio Barreto; Editing by Greg Mahlich