Hesitancy aside, institutional investors eye Australia and Japan as promising geographies for private debt investments within Asia Pacific, with Greater China and Korea on the periphery.
China and India are more obvious choices for AustralianSuper to consider in Asia Pacific, but the super fund currently lacks the expertise and prefers to stick to the US and Europe.
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains
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.
The group will look for private debt opportunities in Asia but CIO Alvin Ying noted the maturity journey of the market could take a while.
Insto roundup: GPIF makes record cut to treasuries weighting; AustralianSuper to triple private debt investments
Omers to buy Indian renewable power producer; GPIF made record cut to treasuries weighting; AustralianSuper's private debt investments to hit A$15 billion by 2024; Hong Kong Exchange Fund's investment income recovers for H1 2021; China's securities regulator claims to seek closer cooperation with US; Allianz wins approval from Chinese regulators to launch asset management firm; and more