Hillhouse Investment will launch its latest buyout fund in 1Q26, with the parallel growth fund set to come to market later in the year, according to four sources familiar with the situation.

The target for Hillhouse Fund VI is USD 7bn with a planned GP commitment of 15%, the four sources and a fifth source added. One of the sources noted that Hillhouse has been in talks with LPs since early in the year, but a formal launch was delayed because deployment of Fund V was a little behind schedule.

Asante Capital is serving as placement agent for Fund VI.

Marketing for the growth fund could begin in 1H26, according to the first two sources. A target for this vehicle has yet to be finalised. Both current iterations of the buyout and growth funds are now 75% deployed.

The Fund V vintage was the first in which Hillhouse pursued separate mandates for buyout, growth, and venture.  It raised approximately USD 20bn across all three, according to a sixth source. The split was around USD 14bn for buyout, USD 5.2bn for growth, and USD 1bn for venture.

The firm closed its fourth private equity fund, which was positioned as global but with a focus on Asia, at USD 10.6bn in 2018.

The launch of a distinct buyout strategy coincided with Hillhouse increasing its focus on this deal type and looking beyond its traditional core market of China. The emphasis is more pan-Asian than global, with AVCJ previously reporting that at least 30% of Fund V would end up in China or China-related deals.

Control deals since 2022 include George Clinical in Australia, SK EcoPrime in South Korea, Singapore-headquartered InCorp Global, Asia-focused Dulwich College International, and carve-outs of global businesses from Philips and Harneys.

Most recently, Hillhouse agreed to acquire a stake in Bristol-Myers Squibbʼs China joint venture and two China-based clinical research businesses from WuXi AppTec.

Meanwhile, newly established platforms in real assets and private credit – Rava Partners in 2020 and Elham Credit Partners in 2023 – have been international in outlook from the beginning.

The latest iteration of the growth fund will concentrate on late-stage and pre-IPO investments across the APAC region, the first source said.

Fundraising conditions for Asia-focused managers remain challenging. Around USD 66bn has been raised year to date, excluding renminbi-denominated funds, according to AVCJ Research. This represents an improvement on 2024, but it is still well below the trailing eight-year average of USD 93bn.

Moreover, EQT and Blackstone’s latest pan-regional funds account for one-third of the 2025 total.

Hillhouse did not respond to a request for comment. Asante declined to comment.