ACCESSWIRE
24 Nov 2020, 01:37 GMT+10
TORONTO, ON / ACCESSWIRE / November 23, 2020 / Finance executives at Toronto-based Hamilton Chukyo Brokerage have today commented on Blackstone Group Inc as it seeks to raise around $5 billion for its second Asia-focused private equity fund.
'Blackstone has begun to market its new equity vehicle to potential investors. It is aiming for more than double the size of its first Asia buyout fund, which closed at around $2.3 billion back in 2018,' commented Anthony Roberts, Head of Institutional Trading at Hamilton Chukyo Brokerage.
Blackstone is raising increasingly-larger pools of capital as dislocations from the coronavirus pandemic provide more deal opportunities. President Jon Gray has pledged to increase the proportion of Asian investment in its entire business, which two years ago stood at just under 10%. In 2018, the U.S. investment firm raised $7.1 billion for Asia real estate investments.
The company joins KKR & Co., which is currently seeking at least $12.5 billion for its next Asia-focused fund. Since early 2019, Baring Private Equity Asia, TPG, and Warburg Pincus have raised capital totaling $15 billion, allocated for investment in the region.
After racing ahead in 2017 and 2018, Asia private equity investment fell year-on-year as exits and deal activity collapsed in Greater China in the face of ongoing trade tension, slowing economic growth, and lower level of new renminbi funds, according to data gathered at Hamilton Chukyo Brokerage. Still, over varying periods, the asset class surpassed public-market benchmarks, with the top quartile of Asia-focused funds predicting a net internal rate of return at 16 percent or more.
Blackstone is gambling that global managers hunger for Asia will continue to rise as the region experiences a quicker recovery from the pandemic than the rest of the world. The deal movement has started to pick up and could intensify going into 2021, as several transactions suspended during the spread of Covid-19 are likely to resume.
'Around 66% of Blackstone's 2018 fund has been invested so far. The firm is seeking buyout deals and companies that have board representation in Australia, Japan, Korea, and the less developed markets like China and India where acquisitions for control constitute only one-third of the overall deal-making,' commented Michael Williams, Head of Private Wealth Management at Hamilton Chukyo Brokerage.
A large number of Blackstone's current holdings are in the consumer, healthcare, and technology sectors, which have profited this year from the shift to online consumption and increased demand for medical treatment.
Blackstone agreed to acquire Takeda Pharmaceutical Co.'s over-the-counter medication business for 242 billion yen ($2.3 billion) in August, its biggest private-equity takeover in Japan.
About
Hamilton Chukyo Brokerage provides financial advice and asset management services to private, institutional, and corporate clients worldwide.
Media Contact:
Christian Marcus, Head of Market Research
Telephone: +1 647 846 6480 | Email: Christian.marcus@hcb-global.com
34F TD South Tower, 79 Wellington Street West, Toronto, Ontario, Canada
SOURCE: Hamilton Chukyo Brokerage
Get a daily dose of St Louis Star news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to St Louis Star.
More InformationKABUL, Afghanistan - Major violence has spread, and escalated across Afghanistan.Scores of national security forces and Taliban militants have been ...
JERUSALEM - Israeli authorities should provide Covid-19 vaccines to the more than 4.5 million Palestinians in the occupied West Bank ...
WASHINGTON, DC - Washington is locked down and U.S. law enforcement officials are geared up for pro-Trump marches in all ...
WASHINGTON, DC - In a sign of the changing political environment in the Middle East, the United States military will ...
WASHINGTON, DC - Outgoing U.S. President Donald Trump's administration carried out its last federal execution when Dustin John Higgs, convicted ...
A Chinese government survey ship was intercepted "running dark" without broadcasting its position via AIS (Automated Identification System) by Indonesian ...
SYDNEY, NSW, Australia - Stocks in Asia were hot on Tuesday, although mainland China was running against the trend.Hong Kong ...
SYDNEY, NSW, Australia - The Australian metropolitan commercial radio audience grew by 2% to nearly 11.1 million listeners in 2020, ...
NEW YORK, New York - According to futures trading, U.S. stocks are likely to sink further when they re-open on ...
WASHINGTON, DC - Tech giant, Apple might finally be getting rid of Touch Bar from its next rendition of the ...
SYDNEY, NSW, Australia - Stocks in mainland China and Hong Kong advanced on Monday on news that the world's second-largest ...
A U.S. businessman, a giant in the pharmaceutical industry, is to be jailed for eighteen years and will have to ...