Hong Kong: Carlyle Group is set to close its biggest ever Asia private equity fund at $6.5 billion, people with direct knowledge of matter said, in a deal that adds to the record levels of funds seeking deals in the region.
The private equity giant had initially targeted a fund of $5 billion but raised its expectations following a strong response from its investors, known as limited partners, said the people. The fundraising could be completed as early as this month-end, one of them said, although another person said the timing of the close could change.
Investor interest in Asia-focused private equity has grown as deals have increased in size following corporate restructuring and as global private equity funds make headway in key markets, including China, India and Japan. Last year, Carlyle’s rival Bain Capital led the region’s biggest ever-buyout with the $18 billion purchase of Toshiba Corp.’s chips unit.
Carlyle’s latest fund will combine buyout and growth opportunities, one of the people said, with the bulk going to buyouts. The firm merged its Asia buyout and growth teams in 2017.
Separately, the US private equity fund has also kicked off a process to raise a Chinese yuan fund of 4 billion that would target opportunities in the world’s second-largest economy, one of the people told Reuters. Carlyle declined to comment. The people declined to be named as the information is private.Reuters