Carlyle Group LP, the world’s second-largest private equity manager, is raising $1 billion for a new private equity fund which will focus on Asian growth companies.
The new fund will be Carlyle’s fifth, and will target smaller, fast-growing companies in Asia, according to a report in the Wall Street Journal, citing sources.
The firm’s previous fund was raised in 2008 and closed at $1.04 billion. Carlyle also has other Asia-focussed funds that invest in larger companies and go for bigger deals. The latest Asian buyout fund raised $3.9 billion in 2014.
A spokesperson for Carlyle had no comment on the size of the new fund.
China has emerged as the hottest destination for private equity in Asia, according to the Centre for Asia Private Equity.
Other firms are also getting ready to raise and deploy large funds in the region. Warburg Pincus is readying a new $2 billion fund, along with its latest $12 billion global fund that was raised in November. Hong Kong-based PAG raised its new Asia buyout fund, with a corpus of $3.6 billion.
Washington-based Carlyle has 10 growth capital funds world-wide that have $7 billion under management. Its investments in Asia are mainly in China, followed by interests in India and South Korea.
Like Warburg Pincus, Carlyle has been an early PE investor in China since the late 90s. It has previously invested in major companies like Haier Electronics Group Co. and China Pacific Insurance (Group) Co.
Carlyle manages $183 billion worth of assets, out of which one-third are PE investments.
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