<article>Asia-focused buyout funds have raised $23 billion as of August 2017, approaching the record $24 billion they mopped up in the whole of 2014, as per the latest Preqin report.</article>

Asia-focused buyout funds have raised $23 billion as of August 2017, approaching the record $24 billion they mopped up in the whole of 2014, as per the latest Preqin report.
The deal activity was led by the closure of two big-ticket vehicles in 2017 including the<a href="https://www.dealstreetasia.com/?s=KKR Asian Fund III" target="_blank" rel="noopener"> KKR Asian Fund III </a>that secured $9.3 billion and the<a href="https://www.dealstreetasia.com/?s=Guoxin Fund 1" target="_blank" rel="noopener"> Guoxin Fund 1</a> which secured $7.2 billion, the report said.
<a href="https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151050.bmp.jpg"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-82681" src="https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151050.bmp.jpg?resize=609,399" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151050.bmp.jpg?w=609 609w, https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151050.bmp.jpg?resize=300,197 300w" sizes="(max-width: 609px) 100vw, 609px" data-recalc-dims="1" /></a>
The largest buyout fund in the market, Asian Institutional Investor Joint Overseas Investment Fund, has a target size of $10 billion and is seeking to become the largest Asia-focused buyout fund ever, it added. As a result, dry powder available to Asia-focused fund managers sits at a record $144 billion as of December 2016, with buyout funds accounting for 32% of the pie.
“Despite a steady decline in Asia-focused private equity fundraising levels, buyout funds focusing on the region are seeing record fundraising highs in 2017 so far. This is largely due to the closure of mega funds such as KKR Asia III and Guoxin Fund I, which will look to target opportunities in Asia and China respectively. With a further mega vehicle, Asian Institutional Investor Joint Overseas Investment Fund, currently in market targeting $10 billion, it seems as though we will continue seeing mega Asia-focused buyout funds come to market and raise capital from investors,&#8221; said Christopher Elvin, Head of Private Equity Products at Preqin.
Buyout activity in the region has slowed in recent years falling from $50 billion in 2015 to $34 billion in 2016. Moreover, Asia-focused private equity fundraising declined with aggregate capital secured by funds closed in 2016 reaching $66 billion, a 26% decrease from the $89 billion raised in 2014, the report further brought out.
<a href="https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151312.bmp.jpg"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-82682" src="https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151312.bmp.jpg?resize=597,410" alt="" srcset="https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151312.bmp.jpg?w=597 597w, https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151312.bmp.jpg?resize=300,206 300w, https://media.dealstreetasia.com/uploads/2017/09/Fullscreen-capture-20-09-2017-151312.bmp.jpg?resize=260,180 260w" sizes="(max-width: 597px) 100vw, 597px" data-recalc-dims="1" /></a>
&nbsp;
&#8220;However, other elements of the private equity industry in Asia do not appear to have kept pace with fundraising activity. Buyout deal activity in the region has seen year-on-year declines in deal value, while dry powder available to fund managers has reached new record highs. This may create challenging conditions going forward, as firms seek to effectively deploy more capital into fewer opportunities. However, 2016 was the first year in the past decade where Asia-focused funds saw positive net cash flows, and if this continues the implications for the industry in Asia will be profound,” he added.
Also Read:
<a href="https://www.dealstreetasia.com/stories/india-carlyle-group-merges-growth-buyout-verticals-80468/" target="_blank" rel="noopener">India: Carlyle Group merges growth, buyout verticals</a>
&nbsp;
&nbsp;
&nbsp;
&nbsp;

Asia-focused buyout funds are on a course for a record fundraising with $23 billion in capital already raised as of August 2017, approaching the record $24 billion seen in the whole of 2014.

Asia-focused buyout funds likely to surpass $24b fundraising high of 2014

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

Asia-focused buyout funds likely to surpass $24b fundraising high of 2014

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief