U.S. private equity firm KKR & Co LP has told investors it will refrain from launching a new fund targeting small- and medium-sized companies in China and will instead focus on larger, more profitable buyouts, people familiar with the plans told Reuters.

New York-based KKR’s move underscores a shift underway in Asia, where global private equity firms are shying away from bite-sized investments to the tune of $50 million to $100 million.

It comes at a time when growth is slowing in China and questions are increasing over the health of its corporate landscape, often indebted and lacking transparency.

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