MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
CP Eaton raises funds from limited partners û institutional investors, family offices, funds of funds û and places these into alternative investments, including hedge funds, private-equity funds, buyout strategies, real estate funds and infrastructure funds. Since its founding in America in 1983 it has placed around $31 billion of assets across 55 products. It is independent of other financial groups.
The firm opened a Shanghai office in late 2007 to develop relations with regional institutions and other potential clients, as well as to research Asia-based fund products that it could place (as general partners, in its parlance). Ed Greene is the managing director in Shanghai.
Edwards says the firmÆs biggest limited partners in the region are to be found in Australia, Japan, Singapore and China. Bai Jingjing has been responsible for building this business; she will now concentrate on North Asia. Edwards has been hired to develop business in Australia, New Zealand, India and Southeast Asia û although Australia will be the biggest focus, followed by Singapore, he says. Both he and Bai report to Ed Greene.
Asian institutions are talking with CP Eaton about a broad range of investment opportunities, he says, with no discernable, universal preference for a particular strategy.
Edwards acknowledges that the environment for raising new capital is difficult. Most Asian investors have become overweight alternative exposures because the valuation of their long-only allocations has fallen precipitously. He expects investors will begin to rebalance in the coming months, which could see them revalue and adjust their alternative exposures û which in some cases will include new types of exposures.
Investors still favour private equity assets for their higher growth, better governance structures, and diversification potential.
The recent focus on greenwashing has put bond issues under greater scrutiny. However, some market participants believe this risks paralysis by analysis.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.