Asia fundraising in 2008 outpaces 2007

Private equity real estate and private equity funds investing in Asia raised $58bn in the first 11 months of 2008, according to a study - almost two-thirds more than for the whole of 2007.

In the first 11 months of 2008, a total of $58.1 billion was raised by 48 private equity real estate and private equity funds targeting Asian markets, a study has revealed.

The figure is a 63 percent increase over the capital raised throughout the whole of 2007. The study does not account for venture capital funds raised in the period.

While the amount raised has increased 63 percent from $35.6 billion last year to $58.1 billion in the first 11 months of this year, the total number of funds targeting Asia has declined from 64 to 48, according to the private equity research company Zero2IPO Research Centre.

Six of the funds were real estate vehicles, raising about $5.5 billion. 

According to PERE magazine data, a total of $15 billion had been raised for Asia-focused real estate funds by November, including the largest Asia-dedicated property fund ever, MGPA's $3.9 billion Asia Fund III, LaSalle Investment Management's $3.2 billion LaSalle Asia Opportunity Fund II and Merrill Lynch's first Asia fund, the $2.7 billion Merrill Lynch Asa Real Estate Opportunity Fund.

The study by Zero2IPO revealed growth capital funds were a dominant strategy for funds and the total amount of capital raised. From January to November 2008, 35 growth funds attracted around $37 billion for the Asian markets. Capital raised by growth funds grew my more than three times as compared to 2007.

In keeping with the private equity trend around most of Asia, buyout funds were less popular. In the first 11 months of this year five buyout funds investing in Asia raised $14.5 billion, accounting for a quarter of the total capital raised. In the same period, two mezzanine funds raised $1.1 billion.