Siddharth Poddar

Standard & Poor’s has downgraded the credit ratings of Middle Eastern banks Investcorp and Arcapita due to concerns over high leverage, a strain on liquidity and an expected fall in the value of the firms' private equity and real estate investments.

The Hong Kong-headquartered firm has augmented its Cambodian operations as it raises a $100m private equity and real estate fund focused on the country.

Dubai World-owned Istithmar World has reduced its staff by 13 in a bid to address existing market conditions. The investment firm is split into four units, including a private equity and a real estate arm. It has deployed more than $3bn since 2003.

Anil Ahuja, formerly co-head of 3i Asia with Mark Thornton, has been appointed as the head of 3i's Asian operations. He will continue to lead the India team and report to Chris Rowlands, chairman of 3i Asia.

The South Asian nation saw a 45% drop in total deal value and a 24% decline in the total number of deals announced in 2008 compared to 2007. More than a third of all deals were in the real estate sector.

CDH Investments has teamed up with Goldman Sachs to provide growth capital funding to Himin Solar Energy Group. The capital will help push the company, which makes products like solar water heaters and solar lamps, towards an initial public offering.

Private equity real estate and private equity funds investing in Asia raised $58bn in the first 11 months of 2008, according to a study - almost two-thirds more than for the whole of 2007.

Regulators have reportedly rejected the joint venture, and instead allowed CITIC to launch a private equity arm expected to raise RMB 6bn for its first fund.

China’s $200bn sovereign wealth fund has said that it will not pump money into troubled western financial institutions citing a lack of ‘sincere cooperation’ on the part of the US government.

The Asia-focused buyout firm has wrapped up fundraising more than $1bn shy of its original target.