EQT lands record Asia buyout fund at US$15.6 billion amid turmoil

[HONG KONG] EQT raised US$15.6 billion for its latest private equity Asia fund, the largest pool of capital ever assembled for the region, as global investors look beyond the US amid elevated uncertainty.

While the US remains the largest source of capital by US dollar commitments, with a roughly 30 per cent share, allocations from Asia and Europe grew faster in relative terms. The three regions accounted for 80 per cent of the fund, with the remainder coming from the Middle East and private wealth channels, Asia chairman Jean Salata said.

About 75 per cent of the fund’s capital is coming from outside of Asia, with a lot of overseas investors turning to the region as geopolitical tensions and volatility rise elsewhere. They are gravitating towards scaled platforms as delivering consistent returns, attracting talent and navigating cycles requires that level of resources, he said.

“The general tone of investors is that they are very interested in the Asia region as a place to invest,” Salata said.

Almost a third of the new pool of capital came from 75 new investors, more than 45 of whom are cross investors from other EQT funds that had previously not invested in the firm’s Asia fund.

While institutional investors remain heavily anchored in the US, the Iran conflict has reinforced the case for diversification across regions and asset classes.

The buyout firm had originally targeted to raise US$12.5 billion when it launched the fund in August 2024.

EQT’s fundraising milestone stands in contrast with several years of caution, where many US-based funds curbed allocations to Asia amid weak cash distributions and regulatory constraints on investing in Chinese technology.

The fundraise surpasses the previous record of US$15 billion set by KKR in 2021, highlighting investors’ willingness to back top-tier managers with a strong track record. It is nearly 40 per cent larger than BPEA VIII, which closed at US$11.2 billion in 2022.

SEE ALSO

EQT warns of exit risks for alternative energy assets held by private equity

While sentiment in Asia has improved this year, supported by a pickup in exits and the use of continuation vehicles to ease liquidity pressures, many allocators are increasingly using a smaller number of managers, favouring scale, execution capability and consistent returns.

Among them is Bain Capital, which recently raised US$10.5 billion for its sixth Asia buyout fund, well above its US$7 billion target. Blackstone has gathered more than US$12 billion for its latest Asia vehicle.

EQT has taken the private equity world by storm with sizeable cash outs and top level returns. The firm is aiming to triple its Asia investments to as much as US$110 billion over the next five years from 2026, outpacing deployment in its home turf of Europe. BLOOMBERG