Private debt investments have gained traction with an increasing array of institutional investors in the region. They are attracted by diversification and decent returns.
Asian institutional investors are increasingly lapping up new CLO issuances in the US, the largest market for such leveraged loans, according to a private debt manager.
Japan-focused private equity is enjoying a boom in both deal value and fundraising, but higher prices being paid for assets will put pressure on future returns.
Asset owners across Asia are looking into their investing options in more niche areas of alternatives. There are several possibilities, although they will remain minority investments.
The need of asset owners across Asia to source better returns for their investments has led them to consider investing into more niche areas, particularly private debt.
Initial coin offerings are banned in China as the authorities seek to avoid any financial issues during the Party Congress next week. But rules regulating ICOs may be introduced soon.
Investors remain keen to fund innovative start-ups in Asia but have learned to be more selective, say experts.
The family office of Steven Cohen, the founder of now-defunct US hedge fund SAC Capital, is expanding aggressively. It is expected to seek external money next year.
Gold price has fallen from its one-year peak in September and will be under further pressure if the US Federal Reserve increases interest rates as expected in December.
Steer clear of mezzanine in Asia and China NPL funds, says Hamilton Lane. The private markets investor's ideal credit portfolio is a blend of special situations and direct lending.
Hong Kong property market is at high risk of being in a bubble, says an annual real estate report by UBS, but some investors think opportunities in the city still exist.
While some of the more liquidity-constrained super funds have little more than 1% in private markets, the more active funds are taking a more global approach after years of home bias.
A senior executive of Taikang Life's in-house asset manager shared the firm's desire to be more proactive when picking private equity investments and managers.
Bitcoin's appeal is growing among Asia's wealthy but regulatory concerns and illiquid digital currency markets, are likely to keep investments muted for now, say experts.
Large institutions such as CPPIB, HSBC and Macquarie flag obstacles deterring private capital from investing in emerging market infrastructure.
Beijing's new draft rules for private funds do not mention regulating these products' investing into non-standard assets, which could let them conduct corporate lending, said observers.
Private equity fundraising in renminbi has rebounded strongly since 2015. There are good reasons for this trend, says Ian Kelly of PE fund administrator Augentius.
The Hong Kong arm of China Everbright Group aims to raise its offshore infrastructure fund to $1 billion through China insurers and European investors, and inject more assets into it.
The funds of funds industry in China has enormous potential, but fund houses need to build capabilities and track records in order to exploit it, said participants and observers.
The region's family offices are keen on real estate, equities and increasingly US private credit, according to a joint report by UBS and Campden Research.