Blackstone’s real estate fund set a new record as the largest-ever investment fund dedicated to the real estate sector in Asia.
As part of a strategic move, U.S. private equity fund Blackstone Group LP has raised $9.4 billion in a new Asia-focused funds, including its first private equity fund for the region. The development adds to the humongous industry-wide pool of funds that are being accumulated for investments and acquisitions in Asia.
In a separate statement, Blackstone stated it had closed the Asian private equity fund at about $2.3 billion and had raised $7.1 billion for its second regional “opportunistic” real estate fund.
Asia-focused private equity funds have increasingly grown in size in recent years following corporate restructuring which has drawn global private equity players into key markets which include India, Japan and China.
“The region continues to experience strong growth compared to other major markets, presenting compelling investment opportunities across sectors,” said Joe Baratta, Blackstone’s global head of private equity.
With its new Asia-focussed private equity fund, Blackstone has at least $3.8 billion to plough into the Asian equity market when “associated commitments” from its global buyout fund are counted.
Incidentally, the Carlyle Group is set to close its biggest Asia private equity fund at $6.5 billion; other global private equity funds, including KKR & Co have also raised fresh capital in Asia,
Significantly, Blackstone stated, its real estate fund was the largest-ever investment fund dedicated to the real estate sector in Asia.
“The size of this fund…gives us flexibility to pursue a range of opportunities and commit capital with speed and scale,” said Ken Caplan, global co-head of Blackstone Real Estate.