Asia private equity fundraising hit a 12-year low in 2024 as strong LP appetite for Japan failed to offset limited activity in China and fortunes were mixed for pan-regional buyout managers, according to AVCJ Research.

Commitments to Asia-focused funds, excluding renminbi-denominated vehicles, amounted to USD 37.7bn, provisional data show. This compares to USD 68.8bn in 2023 and USD 111.3bn in 2022. Fewer than 250 funds achieved partial or final closes, down 44% year-on-year. Renminbi fundraising hit a new high of USD 171.6bn, buoyed by support from government-backed investors.

Activity slowed markedly in the second half of the year, partly due to a string of large-cap managers announcing closes during the first six months. These included CVC Capital Partners [AMS:CVC] and TPG [NASDAQ:TPG], which raised USD 6.8bn and USD 5.3bn for their latest Asia buyout vehicles.

EQT Private Capital Asia, which is currently in the market seeking USD 14.5bn for its latest flagship fund, also made its mark early in 2024 by closing a debut Asia mid-market vehicle on USD 1.6bn. In addition, Carlyle [NASDAQ:CG] and Kedaara Capital closed sizeable country funds of JPY 430bn (USD 2.67bn) and USD 1.74bn for Japan and India, respectively.

Carlyle was one of multiple Japanese managers to close a fund, taking the country’s total to a record USD 13.9bn, or 37% of the regional total. Excluding renminbi fund activity, China has occupied the top spot in Asia for 15 of the past 20 years. In 2024, it was surpassed by Japan and India, with the latter securing USD 5.5bn.

Commitments to China-focused US dollar funds were just USD 2.7bn, down from USD 12.9bn in 2023 and USD 26.9bn in 2022. LPs are wary of backing local managers due to uncertainties involving geopolitical tensions, paths to exit, and the economic outlook, but relatively few managers are willing to test the market. AVCJ Research has records of barely a handful of closes.

Private equity and venture capital investors deployed USD 155.7bn in Asia in 2024, down from USD 168.4bn a year earlier. Exits rose from USD 64.7bn to USD 73.1bn, though they remain well short of the USD 81.1bn and USD 118.9bn posted in 2022 and 2021.

The largest announced transaction of 2024 is also the region’s largest-ever buyout – excluding utility-like assets – and among its biggest exits. Blackstone [NYSE:BX] confirmed it would buy data centre operator AirTrunk for USD 16.2bn, facilitating an exit for a Macquarie Asset Management-led consortium that has held the business for about four years.

Second place in deal rankings went to Newland Commercial Management, a China-based shopping mall operator that PAG, CITIC Capital, and Ares Management [NYSE:ARES] carved out from Wanda Group in 2021. Rather than trigger a redemption clause, they decided to roll over at a higher valuation – USD 8.3bn – with Abu Dhabi Investment Authority (ADIA) and Mubadala Investment joining the consortium.