Private equity firms are preparing to launch large Asia-focused funds in spite of an increasingly difficult fundraising environment and the emergence of accounting fraud allegations that have dogged various companies in the region, whether public or private.
In Asia’s biggest round of fundraising since the 2008 financial crisis, KKR is in the early stages of raising $4bn-$6bn, while TPG is aiming to raise $4bn and Bain Capital $2bn, according to people familiar with the matter.
At the same time, these big international firms are facing competition for funds from local investment groups, especially in China. For example, Fred Hu, a former Goldman Sachs’ partner, has raised more than $1bn from investors for his fund, Primavera Capital, while Shan Weijian, a former TPG partner, has raised almost $2bn – large amounts for such first time funds.