PE Firms Are Raising Record Sums in Asia. EQT Group's Chair Explains Why. -- Interview

By Megan Cheah and Fabiana Negrin Ochoa

Some private-equity firms are raising their largest funds ever in Asia, even as broader industry fundraising remains tepid in a risk-off environment dominated by geopolitical tensions.

As the private equity-landscape consolidates, top players are carving out a larger share of the market, said Jean Salata, chair of EQT Group, a Swedish investment company with around 291 billion euros, equivalent to $333.70 billion, in total assets under management.

In April, EQT raised more than $15 billion for its largest Asia-Pacific private-equity fund to date. Bain Capital secured $10.5 billion for its biggest-ever Asia fund in May, while Blackstone followed in June with roughly $13 billion for its largest regional PE fund.

The trend reflects what Salata describes as a shift in how global investors view Asia.

"We're sensing increasing interest in the region by global investors that want more diversification," he said in a recent interview.

While some observers have pointed to a "sell America" trade driving money toward other regions, Salata believes that is a mischaracterization.

The U.S. will remain a core market for most investors, he said. However, the market has become so concentrated and correlated with the technology sector that it is pushing institutional capital toward more balanced portfolios.

"It pays to be diversified in the long run," so increased exposure to Asia is essential, said Salata, an industry veteran with a net worth of roughly $8.6 billion, according to Forbes.

Higher interest rates haven't yet translated into more capital, partly because Asia has a higher entry barrier than investing in a uniform market like the U.S., Salata said.

"Asia represents about 50% of global [gross domestic product], but only gets about 5% of global private equity allocations," he noted.

A large, homogeneous geography is easier to tackle, which is why they are a lot more competitive, he said. "In Asia, there are about four firms that manage $10 billion funds. In the U.S., there are around 30."

Another issue stymieing fundraising is the perception among some investors that they haven't seen the desired liquidity from their Asian investments.

"Investors are being much more discriminating as to where they put their money than they would in a market where there's a lot of liquidity," the EQT Group chair said.

By sector, EQT focuses primarily at major themes across healthcare, technology and industrial services, all underpinned by artificial intelligence.

"We think AI is going to be a very big productivity tool and a big opportunity for companies that can adopt it," Salata said. "It's also a threat and so it's not going to be a uniform [impact]."

EQT sees opportunity to buy businesses that can benefit from AI, particularly in healthcare technology and services, as well as firms that support data centers and the chip sector.

Geographically, EQT is active in all major markets: Japan, South Korea, India, Southeast Asia, and Australia.

Japan is particularly compelling, Salata said, as shareholder reforms there are spurring local companies to partner with private equity and activist funds to streamline their operations.

Such tie-ups typically involve taking a business private or spinning off noncore assets. Last year, EQT took Japanese elevator maker Fujitec private through a $2.7 billion tender offer. At present, it is vying to acquire internet company Kakaku.com against LY Corp. and Bain Capital, with the competing offers valuing the company at over $4 billion.

Salata attributes the PE momentum in Japan to a "mindset shift in Japanese corporate boardrooms, almost like a changing of the guard."

The new rules have created an environment with a domestic mandate to improve corporate governance and improve shareholder returns--"which is what private equity is good at," he said.

Write to Megan Cheah at megan.cheah@wsj.com and Fabiana Negrin Ochoa at fabiana.negrinochoa@wsj.com

(END) Dow Jones Newswires

July 30, 2026 00:34 ET (04:34 GMT)