Northstar Group, the private equity firm from Indonesia, had laid out plans to raise nearly USD1 billion in a new fund for investments in the Southeast Asia. This was confirmed by individuals familiar with the plans, who told Reuters.

Northstar is backed by TPG Capital and was established in 2003. It is one of the few home-grown buyout firms located in Southeast Asia. It is now facing rising competition from other global buyout firms such as KKR & Co and Blackstone Group. The two firms have built teams to participate in the region since last year.

The details of the new fund from Northstar is still being finalized as of its general meeting held in Jakarta. With the fund, the firm is betting that its track record would help it surpass its last fundraiser worth USD820 million.

The region is home to nearly 600 million people and its consumer middle class is backing the strong economic gains in th region. This strong class is attracting more buyout firms to the region together with the recent exits of TPG and CVC Capital show the vibrant activity in private equities in the region.

Northstar did not provide a comment on inquiries as to its fundraising plans.