Blackstone Inc , the world's largest alternative asset manager, has started raising its third Asia-focused private equity (PE) fund, targeting at least $10 billion, two people with knowledge of the situation said.

The new buyout fund, Blackstone's third in Asia, will primarily focus on India with the largest percentage of capital allocated there, the sources said, declining to be named as they were not authorised to speak to the media.

China will not be a market for the new fund, the sources said.

Japan and Australia will be two other significant markets for Blackstone while it continues to look at other countries such as South Korea and Singapore, they said.

The capital allocations of Blackstone's new Asia PE fund would not be set in stone, however, and strategy could shift based on the macroeconomic environment, one of the sources said.

Blackstone declined to comment.

(Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Editing by Mark Potter)