Blackstone closes debut Asia PE fund at $2.3b
The Blackstone Group has achieved a final close on its maiden Asia-focused private equity fund at a revised hard cap of $2.3 billion.
Blackstone Capital Partners Asia (BCP Asia) was launched last year and reached a first close of $1.5 billion in January with contributions of $200 million and $73 million from Washington State Investment Board and Woori Bank, respectively. It revised its targeted corpus from $3 billion to $2.25 billion the following month.
When coupled with associated commitments from Blackstone’s global buyout program, BCP Asia brings the firm’s total equity to invest in Asia to at least $3.8 billion. The vehicle is expected to invest pan-regionally with a focus on consumer, electronics, manufacturing, and medical sectors.
“[W]e are well-positioned to seize the ongoing opportunities in Asia,” Joe Baratta, global head of private equity at Blackstone, said in a statement. “The region continues to experience strong growth compared to other major markets, presenting compelling investment opportunities across sectors.”
Blackstone’s Asia Pacific presence includes eight offices across Hong Kong, Singapore, Beijing, Shanghai, Mumbai, Seoul, Tokyo and Sydney. Recent activity in the region includes sizeable exits from Indian IT company Mphasis and Trans Maldivian Airways, as well as an agreement to acquire Australian auto services player AMA Group via BCP Asia for about $396 million.
The firm is among the last large global private equity players to establish a dedicated PE vehicle for Asia. The move comes as managers raise ever-larger sums for pan-regional funds. Last year, KKR closed its third Asia vehicle at $9.3 billion, while Affinity Equity Partners followed up with $6 billion for its fifth fund.
Other global GPs currently advancing Asia fundraising programs include The Carlyle Group and TPG Capital. Permira was seeking $1.5 billion for its debut regional vehicle but put the fundraising on hold earlier this year.
Founded in 1985, Blackstone claims about $111 billion of private equity assets under management globally. It also operates across public debt and equity, non-investment grade credit, secondary funds, and closed an Asia-focused real estate fund at $7.1 billion in conjunction with BCP Asia.
In February, the firm made a number of senior leadership changes, with Tony James, the firm’s president and COO, handing over day-to-day management duties to global real estate head Jon Gray.
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