Swedish private equity firm EQT, which has backed Indian companies such as HDFC’s Credilla and Indira IVF, has raised $15.6 billion for its latest Asia-focused PE fund, marking the largest-ever fund dedicated to the region.
The fund, BPEA Private Equity Fund IX, closed at its hard cap and was oversubscribed, with $14.9 billion in fee-generating assets under management, the fund house said in a statement. The predecessor fund, BPEA VIII, had raised $11.2 billion in 2022.
The record fund comes after several challenging years for the Asian private capital market. Fundraising in the region fell to a 12-year low of $58 billion in 2025, declining sharply for the fourth consecutive year, according to a Bain & Company report. The region’s share of global fundraising has also shrunk to just 5% from 12% in 2021, reflecting cautious investor sentiment and tighter capital allocation.
Record funding
EQT’s ability to raise a record fund in this environment highlights a growing divergence in the market, where limited partners (LPs) are concentrating their commitments with large, established fund managers. The report showed that top 20 closed funds formed half of the total capital raised, while the share of first-time funds closed fell to 4% from 10% in 2020.
The ninth fund saw strong participation from both existing and new investors, attracting over 75 new investors. Commitments were broadly balanced across the Americas, Europe and the Middle East, and Asia Pacific, with all regions increasing allocations from the prior vintage. Pension funds and sovereign wealth funds were leading contributors.
“In a highly competitive and selective fundraising market, our ability to deliver consistent realizations was a differentiator for our investors,” said Jean Eric Salata, chairperson of EQT Asia, in a statement. According to its year-end report, EQT announced a total gross fund exits of 19 billion euros and realized 14 billion euros for its co-investors, making 2025 its most active exit year ever.
What will the new fund focus on?
The new fund, BPEA IX, will focus on control investments in companies across technology, healthcare, industrial technology, services, and technology services. EQT’s Asia platform, built over nearly three decades, has deployed around $30 billion across more than 160 deals and currently holds stakes in about 65 companies.
BPEA IX is currently 5-10% invested, based on the actual fund size.
Despite fundraising headwinds, underlying market activity shows mixed signals. Bain notes that dealmaking in Asia-Pacific remained volatile in 2025, with total deal value declining by around 8%, even as exit activity rebounded for a second consecutive year.
Improving exits and liquidity have helped restore some investor confidence, with net cash flows to investors turning positive after three years of outflows.
At the same time, elevated valuations and a backlog of aging portfolio assets continue to weigh on the market. Median deal multiples rose to 13.4x in 2025 from 10x in 2023, increasing pressure on funds to deliver operational improvements and earnings growth.
Against this backdrop, investors are favouring managers that can demonstrate consistent returns across cycles. Looking ahead, Bain expects a potential rebound in fundraising in 2026, encouraged by a pipeline of large funds in the market and early investor commitments.
