China’s CITIC Private Equity (CPE) aims to raise $3 billion in a new dollar-denominated fund and has reached a first-close of $1.8 billion.
CPE is planning to complete the fundraising by year-end, said the person, who declined to be named as the information is confidential.
After the first-close, CPE can now start deploying capital from the new fund while investors can continue to commit funds to it.
Some of the firm’s existing investors, including Singaporean state investors GIC GIC.ULand Temasek TEM.UL, re-upped their commitments to the new fund, said the person.
CPE, which counts ride-hailing firm Didi Chuxing and JD Health International Inc 6618.HK in its portfolio, did not immediately respond to a query for comment.
Its fundraising comes as PE firms in Asia tap markets flush with liquidity due to authorities’ post-pandemic economic stimulus measures, while pension funds and other investors hunt better returns in a low interest rate environment.
Asia-focused funds raised $126 billion in 2020, down 39% year-on-year and nearly 50% less than the average of the previous five years, Preqin’s data showed.
The total is likely to rise this year as more funds are launched with market conditions also becoming favourable for PE firms to exit portfolio companies. As of last week, 108 new funds have raised $53 billion, Preqin said.
KKR & Co Inc KKR.N earlier this month said it raised $15 billion for its fourth Asia-Pacific focused fund.