Startups’ stepped-up fundraising draws PEs with war chests amid low-rate environment. Chris Loh shares his thoughts on whether PE investors in Asia have gotten too used to a benign fundraising environment.
Axiom Asia manages US$5.2 billion in assets, and is known to back the most hungry, motivated managers in the region. It also prides itself on its strong reference network inside the Asian private equity ecosystem.
Indonesia has become a source of frustration for LPs that want to see more exits. A weak currency, slower growth and rising competition aren’t helping GPs as they seek to deliver the required returns.
“The decline in the rupiah means managers must run a lot faster just to stay on the treadmill. But if the fundamentals are good and managers are picking companies that are creating value for customers, taking market share, and growing in local currency terms, investors who stick with those guys will be rewarded.”
Marc Lau shares his thoughts with AVCJ.
Private equity investment in the Asia Pacific has grown from 5% of the global total in 2007 to a quarter of all investment in 2018 with $833 billion now under management in the region. The Asian mid-market space is attractive and with the right network and origination (page 11, 19) Venture Capital as well. This Roundtable also discusses a process to invest in private equity assets in Asia but without the shortcomings of the conventional private equity model, the biggest of which is the lack of liquidity.
Marc Lau shares his opinion in a roundtable discussion on the process to invest in private equity assets in Asia.
Funds of funds managers are pushing deeper into hard-to-access markets and backing generational change to generate alpha.
Private equity firms seeking to exit their US technology investments to Chinese strategic buyers will need to rethink their strategy once the Foreign Investment Risk Review Modernisation Act becomes law in the next few months.
“GPs have come to the realisation that they will face difficulty flipping their US tech companies to Chinese SOEs and they must recalibrate their exit strategy.”
Edmond Ng shares his opinion with PEI.
Alex LEE and Chris Loh on “Investors will see the merits of investing in Asian private equity” – An interview by Hedgework.