PAG targets $4 billion to $5 billion for new Asia buyout fund

PAG is preparing to raise a new Asia-focused buyout fund, with targets potentially ranging between $4 billion and $5 billion. The investment firm has begun discussions with limited partners regarding the fundraising, which aims to achieve an initial close by the end of this year or by 2026.

The move signals a strategic shift toward a more geographically balanced portfolio. While PAG has historically maintained significant exposure to China, the firm is seeking to diversify its footprint across the region. Its previous buyout vehicle, which closed in 2024 at $4 billion, included investments distributed across Australia, China, Japan, and India.

This new fundraising effort follows a period where PAG's fourth buyout fund saw its target reduced from an initial $9 billion in 2021 to a final $4 billion, due to the pandemic, Chinese regulatory changes, and geopolitical tensions. Over the last 18 months, the firm has distributed more than $7 billion in capital back to its investors.