Regional transactions are bouncing back to pre-Covid levels, but experts caution that each geography requires a different investment strategy.
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 still favour private equity assets for their higher growth, better governance structures, and diversification potential.
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 $95 billion Korean savings will set up a separately managed account for real estate debt investment early next year in order to shorten decision-making and help it win deals in a crowded market.
Its head of infrastructure revealed the insurer’s asset allocation targets at AsianInvestor’s latest Private Assets Investments Week
Private credit might be less attractive than it was last year as investors rush into the market, but there are sweet spots to be found.
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.
Technology and big data-driven databases are expected to help Asian asset owners appropriately benchmark their alternative investments across the world.