Blackstone looks to raise $5b for its second Asia fund, report says

The investment company closed US$2.3 billion in its first Asia private equity fund in 2018. Now, it aims to close more than double the amount for its second fund. The company is currently in the process of seeking potential investors for the new vehicle, the sources said.

Around 66% of its first Asia fund has been invested, and it’s now looking to invest in Japan, Australia, Korea, and “less mature markets” like China and India.

Many of its portfolio companies are in sectors covering the consumer, healthcare, and technology industries, which benefited this year due to increased demand for online consumption and medical services amid the pandemic, the report said.

Some of Blackstone’s portfolio companies include over-the-counter drug business Takeda Pharmaceutical in Japan, Indian mortgage lender Aadhar Housing Finance, and pharmaceutical distributor Geo-Young in South Korea.

With the new fund, Blackstone is betting that Asia will recover faster than the rest of the world and that global managers will continue to invest in the region, according to the report.

Last month, another US-based investment giant KKR raised more than US$13 billion for its fourth Asia-focused fund from 260 investors, with the offer still ongoing.