T&I Fundraising & Firms Report for Asia, June 29
It was one of the slowest, least diverse fundraising weeks of 2025, but we're still in sixth place for the last 15 years.
Editor’s Note: Concern over U.S. endowments being viewed as a new tax source arrives at the same time that Australia’s vast pension assets are targeted by the government, causing tens of thousands of pension millionaires to cash out and avoid the tax on pensions. Both illustrate rising political involvement in endowments and pensions. My suspicion? We’re approaching the need for reforms, similar to the sweeping Erisa legislation of fifty years ago and a rethink of 2017’s Tax Cuts and Jobs Act (TCJA) which imposed a new tax on smaller private nonprofit colleges and universities, enrolling at least 500 students with endowment assets over $500,000 per student. I’m not on the Hill anymore working on hearings or legislation; advising the White House, Committee, Sub-Committee or Caucus staffs; not any part of the “Big Budget Bill” negotiations, but I’m persuaded that our endowments are worthy of more consideration.
GP/LP News: Chinese MFI AIIB is reported giving $8.4 billion in finance for 51 projects in 2024, a small part of the torrid pace of announcements the SWF is making as it challenges the World Bank’s IFC for leadership globally. BCI (British Columbia) reported 10% returns for 2024-2025 with AUM rising to $C295 billion. BlackRock and Great Gray Trust announced a JV to give pensions access to BlackRock’s PE and private credit funds. Blackstone told the SEC it expects record income for Q2 of 2025. Chicago Teachers reported Q3 ’24 results with AUM up $582 million on investment gains and committing $150 million to Adams Street despite lowering its PE allocation to 5%. China’s SWF CIC (AUM $1.3 trillion) cancelled the $1 billion sale of a portfolio of PE funds including Carlyle, KKR and TPG. I don’t know what happened to put a halt to further China-USA decoupling, but I can report that the Hyatt Hotel at MIT and Harvard has more PRC nationals checking in than the Pudong Airport in Shangai. CPPIB exited oil and gas producer EAP and Informatica (the latter bought by SalesForce). German DFI DEG reported one years’ actions in support of global green and energy investments. Macquarie bought the OTPP’s stakes in three U.K. airports. NSW Government announced an $80 million allocation for VC in its Innovation Blueprint program. The NZ Super Fund announced a loss of $10 billion of AUM begun when US President Trump announced tariffs and its subsequent recovery to pass its previous all time high, now with $83 billion in AUM. Teachers Retirement Louisiana’s June meeting approved $125 million for EQT Exeter Logistics Value Fund V and $100 million for Plexus Fund VII and its most recent HarbourVest portfolio review. Texas Municipal Retirement CIO reported 6.75% returns for one year and the allocation of $1.3 billion for six funds and 10 co-investments in Q1, and its CIO’s 5 year tenure. UTIMCO’s June meeting reported AUM of $78.8 billion for Q1, hedge funds leading portfolio performance, expansion to free full tuition for Texas families earning less than $100,000 per year, one year returns on RE of 4.4%, infrastructure of 9.9%, PE of 6.1%, and VC performance was MIA. Virginia Retirement System reported Q1 returns of 5.3%, led by credit returning 7% and with real estate its worst performing asset 2.4%. It committed $750 million in April and May to Kinterra Capital, iCon Infrastructure, KKR Ivy III, and Sixth Street Distressed and Special Situations Opps VI Fund.
Agents Fees Paid: Brookfield paid its own units $15 million for raising Brookfield’s Special Investments Fund II. It’s one of the year’s slowest week’s for commissions paid for fundraising.
Fundraising Pace: 18 funds filed this week; it’s one of 2025 slowest weeks for fundraising.
Most Active GPs: No one had multiple filings this week, at least among Global funds with allocations for Asia, Pan Asian or single country funds. With three similar reports in a single week (the slowest) I’m tempted but won’t declare a trend as it’s India’s monsoon, summer holiday in East Asia, and July 4th in the USA. I’m here to attest most firms and institutions are getting out of dodge.
Buying, Closing, JV & Mergers: On T&I’s repeated concerns over cross ownership among GPs and across classes, Ares Management (AUM $525 billion) is reported buying three PE funds from Patrick Walujo’s Singapore-domiciled, Indonesian GP, Northstar Group. Selamat! Ares bought Asia’s GLP Capital Partners funds ex-China in March as it continues expansion in Asia. LGT Capital led a $500 million continuation fund deal for IDG Capital China. Millenium Group reduced shareholding in TPG to 4.6%; it became a 5% shareholder June 15th. Australia’s Perennial Partners bought impact investor Melior Investment. PGIM reorganized its credit units into one, $1 trillion platform following a new CEO’s joining in May. Warburg is reported selling its 10% of India’s SBI General Insurance bought in 2019.
Research: The 16th annual Banking on Climate Chaos report of the world’s 65 largest financial institutions says global banks increased support of fossil fuel companies in 2024 to $869 billion, up $162.5 billion from 2023. Callan released its 2025 Cost of Doing Business Study. Coller Capital predicted a rise in allocations to private credit and secondaries as investors seek assets to withstand heightened market volatility. Griffith Asia Institute (Australia) published its Green Independent Power Producers in Asia reporting on Asia's shift to clean energy via collaboration between Chinese Independent Power Producers and their Asian partners. J.P. Morgan Asset Management published its Q2 alternatives report. Japan Times reports an unprecedented number of proposals by activist foreign hedge funds. I’m not certain anyone at the Times was around when Carlyle, Goldman, JC Flowers, TPG and other foreign investment banks and GPs were active in 2000 to 2005, but it might be true. Trade association OMFIF published its Global Public Investor Report for 2025.
Legal and Regulation: Australia’s passage of new regs to tax pension funds “Division 296” is set to pass, causing HNI Australians to move assets out of their pensions to avoid taxes. The Australian Treasurer predicts “only 80,000 HNIs will be affected as pensioners move funds into negatively geared property, trusts and companies. [But] others are winding up self-managed funds, moving real estate out of pensions and gifting to adult children to accelerate estate planning.” SEBI fined India Asset Growth Fund (IAGF), its manager Essel Finance Advisors and trustee Vistra ITCL (India). The US Senate GOP Tax Plan reduced the imposition of draconian tax on endowments passed by the US House. The Chronicle of Higher Education writes it is “considerably more moderate than [the bill] that came before it, writing that “if enacted, affected institutions will still face significant costs, but they [will] avoid the severe consequences posed by earlier proposals.” Glass half full or half…
Class, Geographies and Sectors: No change in the alternatives firmament, restored only last week, of hedge, debt-credit, PE, VC and other funds that have led the five leading fundraising classes for the past three years. And we had another week of venture capital reclaiming its traditional position among dominant fund raising classes. Among geographies the trend of meager single country funds filings, still managed to outperform the slowest week of the year for global, Pan-Asian and SE Asian funds. Notable among sectors: co-invest, real estate credit, special situations and a second robotics fund for 2025.
Fundraising for Last Week:
Jerry Borrell, Editor in Chief, T&I™.