As per the information obtained from sources, Blackstone Group is set to invest 60% of its maiden Asia focused fund into the Indian economy.
“Blackstone plans on deploying $4 billion in Asia over next 5 years”, said a person involved in the matter, requesting anonymity. About 40% of the deal fund for every deal done in Asia will be contributed by Blackstone equity fund, while the new Asia fund-BCP Asia will invest the remaining 60%.
Anuj Kapoor, MD at USB India said,
Until now, the focus of private equity interest in Asia was strongly inclined towards China, especially catering to scale of opportunity and relative ease of exit. However, the presence of favorable demographics, structural reforms, and current stability has led to a growth in the allocation of limited partners (investors in PE funds) to India.
Blackstone, which manages $430 billion assets globally, has invested about $7.5 billion in India till date. The company its operations in 2005 with Akhil Gupta as its managing director.In 2013, senior managing directors Amit Dixit and Mathew Cyriac were raised to co-head for its operations in India.
Currently, India is being rooted as the best investment destination in Asia. Blackstone has already made successful exits with 2-4 times returns on Indian investment and is focusing on opportunities in Japan, South Korea, Australia, and China besides India.