The Carlyle Group, the US-based private equity giant that invests in both growth and buyout deals in India out of its Asia funds, has scooped up $6.55 billion for its new fund for the region.
The global alternative asset manager said on Thursday that the Carlyle Asia Partners V--its largest for the region--exceeds its $5 billion initial target and that it is 65% larger than its $3.9 billion predecessor fund. The new fund had hit first close at $4.5 billion in November last year.
Carlyle joins peers Blackstone and KKR in raising new PE funds to invest in Asia, as buyout funds mop up fresh capital to strike deals in the region. Boston-based Bain Capital and Baring Private Equity Asia are among the other PE firms which have previously raised Asia-focussed funds.
Carlyle's announcement comes days after Blackstone said it had raised $9.4 billion in two Asia-focussed real estate and PE funds. KKR had raised a similar amount for its third Asia fund last year.
Carlyle's new fund will focus on buyout and strategic investments across Asia Pacific, the PE firm said in a statement. The fund invests in a wide range of sectors including consumer and retail, financial services, telecommunications, media and technology, healthcare and industrial companies.
“We expect to see more and larger investment opportunities in the region driven by innovation, attractive demographics, rising consumption and corporate spin-offs,†said XD Yang, chairman of Carlyle Asia (ex-Japan) and co-head of Asia Buyout.
Carlyle started investing in Asia in 1998 and has since backed at least 160 companies through its Asian PE platform. It has invested $2.5 billion in Asia Pacific, excluding Japan, in the last 12 months. These include bets on SBI Cards and Visionary RCM Infotech (India) Pvt. Ltd in India; McDonald’s businesses in China and Hong Kong; and Ant Financial and Baidu Financial in China.
The PE firm's India portfolio also includes e-commerce-focussed logistics company Delhivery and mortgage lender PNB Housing Finance Ltd,
Carlyle's Asian PE team has about 50 investment professionals in eight offices, including Beijing, Hong Kong and Mumbai. It has invested nearly $18.5 billion of equity in the region, and had $20 billion of assets under management at the end of March.
Globally, Carlyle has $201 billion of assets under management. It employs more than 1,575 people in 31 offices across the world.