Now comes words that well-known private equity firm, The Carlyle Group, has successfully closed its fourth Asian growth capital fund, Carlyle Asia Growth Partners IV (CAGPIV). This is a fund which invests in high growth private companies with strong local management and leading market positions in China, India, Korea and other key Asian markets.

It is well known that lots of private equity investments have dried up but this fund was able to raise $1.04 billion in just 14 months. Carlyle, and apparently other investors, believe that China and India are coming out of the recession as their economies stabilize. Some 40% of CAGP IV's limited partners are new investors who are seeking exposure to the hot Asian companies.

"We are delighted with the support we have received from our investors, especially given challenging industry-wide fundraising trends. This is an excellent time for long-term investors to seek value in China and India. Our new fund offers access to high growth opportunities with no leverage, providing attractive risk-adjusted returns. Despite the economic downturn, most of our growth capital portfolio companies have achieved growth rates in the range of 20-50% over the last year," says Wayne Tsou, Managing Director and Head of Carlyle Asia Growth Partners.

CAGP IV's predecessor CAGP III, was successful and so attracted investors. The fund has made 22 investments in two and half years across more than ten sectors including energy, consumer, technology, business services, education, industrial, healthcare, real estate and media. About 80% of these investments were made in China or India.

CAGP IV is more than 50% larger than its predecessor CAGP III by capital commitment and has already made its first investment in a leading Chinese high-end women's fashion company Ellassay.