Private equity deals are likely to sustain their relatively high momentum in 2024, although asset managers may face challenges sourcing the right local talent.
More capital and asset owners are flocking into the asset class as it meets their return expectations, according to two recently-released reports.
Private equity opportunities are being viewed more favourably, according to a newly released Goldman Sachs survey. Some Asian asset owners have also expressed interest in new investments but fundraising lags, hit by concerns over China.
The swift adoption of ESG policies by sovereign wealth funds in China and Singapore has led to a surge in ESG assets under management in Asia, outpacing other major regions, according to a recent survey by Preqin.
Asia will continue to attract private equity investors, but these investors might also look at other markets and strategies in order to avoid pitfalls.
ESG focus in Asia — while lagging its peers — is evolving, getting on par with global standards, and starting to show its own distinctive traits.
The increasing push for managers to adhere to investor ESG benchmarks means that shared standards should be a priority.
Alternative asset data provide Preqin predicts alternative assets will rise 60% by 2025, propelled in part by rising demand from regional investors in this region.
The financial services company believes that its recent tie-up with a private asset data firm will enable it to offer greater clarity and persuade asset owners to invest more in alternatives.
A July survey of 177 institutional investors by Preqin showed an overwhelming majority believe equity markets are at a peak and could see a big correction soon.
Apollo’s new $24.6 billion record buyout fund is likely to be followed by others, but the size of new private equity funds could lead to lower returns for limited partners.
Yet Asia-based private equity firms view fundraising as their main concern, according to research house Preqin. Meanwhile, mid-market buyout deals are in high favour.