PAG has informed limited partners, who invest in its funds, of the fundraising but has not finalised the ​target size, said the people.

The firm, whose private equity co-heads are based in Mumbai and Shanghai, is looking ​at a similar size to its previous buyout fund which closed in 2024 at $4 billion, ⁠the people said.

One of the people said the fund would be in the range of $4 billion to $5 billion with ​a first fundraising cut-off by year-end.

PAG declined to comment. Reuters first reported the fundraising plan earlier on Wednesday.

PAG has been seeking ​a more balanced portfolio since its last buyout fund, to diversify from a historically heavy focus on China, the people said.

It aimed to raise $9 billion in its fourth buyout fund in late 2021 but closed it at $4 billion three years later, as the coronavirus pandemic, regulatory ​tightening in China and escalating Sino-U.S. tension kept North America-based investors largely away from the world's second-largest economy.

That fund was ​evenly invested across Australia, China, Japan and India, a fourth person with knowledge of PAG's plans said.

The firm has returned over $7 billion ‌of capital ⁠to fund investors in the last 18 months with the bulk coming from China assets, said the person.

Asia-based buyout firms have raised $7.4 billion in new funds this year, Preqin data showed.

By comparison, U.S. and Europe-based buyout firms including EQT (EQTAB.ST), Bain Capital and Blackstone (BX.N) this year have raised nearly $40 billion in total for pan-Asia funds, which are more focused on Japan and India, among ​other Asian markets.

Foreign investors have ​warmed to China since ⁠late last year due to strong capital markets onshore and in Hong Kong, fuelled by AI interest and chip companies that brought about some long-awaited exits for investors.

Greater China venture ​capital firms have raised $9 billion so far this year, Preqin data showed.

HSG, formerly Sequoia China, ​aims to ⁠raise at least $1.2 billion in a fund for early-stage investments, said two separate people with knowledge of the matter.

The firm, led by veteran tech investor Neil Shen, also plans to establish a growth investment fund next year, the people said.

HSG declined to ⁠comment. Bloomberg ​first reported HSG's fundraising plan on Tuesday.

All sources declined to be identified ​as they were not authorised to speak to the media.

Other firms raising new Asia-focused funds include Hillhouse Investment which targets $7 billion and KKR & Co which seeks at ​least $15 billion, Reuters has reported.