Bain Capital LP raised $7.1 billion for its new buyout fund dedicated to Asia-Pacific, people familiar with the matter said, defying a fundraising gloom triggered by lingering economic concerns and persistent geopolitical tensions.

The Boston-based alternative asset manager gathered $6.3 billion from investors for its fifth buyout fund in the region, and $750 million in co-investments from its employees, one of the people said, asking not to be identified before a public announcement. Its previous Asia fund was $4 billion, not including internal contributions.

A spokeswoman at the firm declined to comment.

Bain has been diversifying investments across the region to counter growing difficulties of investing in China, long the key target of Asian private equity funds. The firm has boosted dealmaking in India as well as Japan, which accounted for more than 35% of its previous fund’s investment, one of the people said.

Bain began raising its latest fund in July 2022 and had targeted a final completion by the first quarter of this year. It initially planned to raise $5 billion, with a remit to grow to $6 billion.

Private capital fundraising in Asia Pacific is set to hit a decade low this year, as investors shift away from China-focused funds, according to London-based research firm Preqin Ltd.

Firms in the region raised just 22% of last year’s total in the first six months of the year, according to a Preqin report. Aggregate capital targeted by China-focused funds fell to $115.9 billion at the end of the second quarter, from $141.9 billion in the previous three months.

--With assistance from Lisa Du.