Alternative asset manager Blackstone said on Tuesday it ​has raised $13.1 ⁠billion for its Asia private equity fund, exceeding its initial target ‌and marking its largest such fundraise in the region.

The fundraising reflects strong investor ​interest in Asia despite global volatility fuelled by the Iran crisis, and comes a ​month after ​Sweden-based EQT AB raised $15.6 billion to create the region's largest private equity fund.

Blackstone, which was targeting $10 billion for the fund named ⁠Blackstone Capital Partners Asia III, said it has raised more than double the amount of its previous vehicle.

Global institutional and high-net-worth investors have looked to diversify from the U.S. due to high valuations, inflation ​risks and ‌overall geopolitical uncertainty.

Asian ⁠markets such as ⁠Japan and India, which offer a steady pipeline of buyout and growth opportunities, ​have been a major focus for global asset ‌managers.

"Asia Pacific is the fastest-growing region ⁠in the world, presenting compelling opportunities to invest at scale behind our high-conviction themes and deliver for our investors," said Joe Baratta, global head of Blackstone Private Equity Strategies.

Bain Capital has raised about $10.5 billion in its sixth pan-Asia buyout fund while KKR & Co, which held the previous record in a $15 billion pan-Asia fund raised in 2021, is in market to raise $15 billion for its next such vehicle, Reuters has ‌reported.

Over the last two years, Blackstone has invested ⁠more than $7 billion in 12 deals in ​India and Japan, including companies such as Indian AI cloud platform Neysa and Japan's engineering services provider TechnoPro.

The asset manager firm also exited 15 ​companies during ‌the period, including through listings of International Gemological Institute and ⁠Aadhar Housing Finance.

(Reporting by ​Natalia Bueno Rebolledo in Mexico City; Editing by Sherry Jacob-Phillips)