This paper analyzes the asymptotic capacity per receive antenna in a multiple input multiple output (MIMO) system with fading correlation at either the transmitter or the receiver. The objective is the derivation of a closed-form solution for the asymptotic capacity under fading correlation when the number of transmit and receive antennas increases without bound at the same rate. To do that, we consider a particular correlation model that yields a closed form expression for the asymptotic density of the channel eigenvalues. The correlation model was proposed in [1] to analyze the asymptotic capacity of a correlated MIMO system under a uniform power allocation strategy. Here, we extend these results to the closed-loop configuration under waterfilling power allocation. The asymptotic expressions provide some new interesting insights into the different influence of fading correlation on the channel capacity.