Blackstone ramps up presence in Singapore, plans to double private equity team

Blackstone Inc, the world's largest alternative asset manager, has revealed plans to double its private equity business headcount in Singapore over the next two years. The expansion aims to capitalise on the increasing number of deals emerging in Southeast Asia. According to Blackstone's Asia private equity business head, Amit Dixit, the move will not only enhance the firm's operational capacity but also bring it closer to its investor base, which includes sovereign wealth funds, family offices, and individual investors.

The Singapore private equity team at Blackstone is set to grow to six or seven professionals within the specified timeframe, with Aravind Krishnan, a managing director from its PE practice, relocating from Mumbai to lead the team. The strategic decision aligns with the trend of global asset managers establishing or expanding their presence in Singapore, providing alternative bases to China amid geopolitical tensions and a slower economic recovery.

Dixit highlighted the post-COVID acceleration in domiciling businesses in Singapore, serving as a headquarters for operations spanning India, China, Korea, or even global businesses. Blackstone, managing assets exceeding $1 trillion, focuses on businesses with a global presence and envisions opportunities for investment, development, and growth in Southeast Asia.

The asset manager is particularly interested in sectors such as technology, healthcare, consumer services, financial services, and value-added industrial, targeting deals as small as $150 million. With over a decade of operations in Singapore and a team of over 100 professionals, Blackstone stands as one of the largest private equity players in Asia.

Having raised $11 billion for its second Asia private equity fund in 2021, nearly tripling its predecessor, Dixit shared that approximately 50% of the fund has been deployed. Upon reaching the 75% commitment mark, Blackstone plans to commence fundraising for a third Asia private equity fund. Noteworthy deals in the region include the $1.6 billion acquisition of Singaporean precision components maker Interplex in 2022 and the $450 million sale of IBS Software Services to Apax Partners in the previous year, according to Dealogic data.

(With Reuters inputs)