Hong Kong-based private equity firm PAG has reduced the target size of its fourth pan-Asian buyout fund from $9 billion to $6 billion, according to a report by AVCJ citing its sister publication, Mergermarket. 

The downsizing of PAG Asia IV LP comes amid a tough fundraising market as economic uncertainty persists. 

DealStreetAsia has reached out to PAG for comment.

Last month, DealStreetAsia reported that PAG had raised at least $2.2 billion for the fund. The firm had disclosed commitments from 28 different investors since its launch in March 2022.

The $6-billion target would be the same size as PAG’s predecessor fund, PAG Asia III, which closed in 2018. 

Last December, the private equity firm closed its fifth pan-Asian private credit direct lending fund worth $2.6 billion, the largest fund of its kind in APAC.

PAG focuses on investing across private equity, private debt, hedge funds, and real estate in Asia-Pacific. The firm has more than $50 billion in assets under management. It was co-founded 20 years ago by Weijian Shan, Chris Gradel, and Jon-Paul Toppino.

In August last year, PAG was reported to be delaying its $2-billion Hong Kong IPO after filing for it earlier in March, citing stock market volatility.