Fire Sale of Sought-After Fund Raises Alarm Over Asia PE Slump

For over 20 years Indonesian private equity firm Northstar Group was emblematic of Southeast Asia’s boom. Backed by TPG Capital, it raised more than $2.7 billion with a pledge to invest in the region’s best firms.

But this year, between the country’s faltering outlook and a scandal that sank a flagship investment, its founders struggled to continue. By June it sold key funds to US investment firm Ares Management Corp. for just $6 million, according to documents seen by Bloomberg News and people familiar with the matter. A representative for the firms couldn’t immediately comment.

As global investors gathered ...