News

Asean private equity & venture capital AuM rise 8.6%

Private_equitySoutheast Asia’s private equity and venture capital industry continues to experience fast growth as assets under management (AuM) in the Asean region rose by 8.6% – from $26 billion to $28 billion – in 2018, according to industry data provider, Preqin. Last year, 17 Asean-focused venture capital funds raised $0.9 billion on aggregate, but buyout and growth fundraising were below historical levels. During the first six months of 2019 alone, six venture capital funds raised an additional $0.5 billion, with buyout and growth funds already matching last year’s total ($0.8 billion). However, fundraising is considerably lower than its peak of $6.1 billion in 2015. As of June 2019, there are 70 Asean-focused private equity funds in the market targeting $8.5 billion, according to Preqin. Ee Fai Kam, head of Asia research and operations at Preqin said investments and appetite are increasing in the region, signalling a bright future for Asean private equity. “With several large cities on the global stage, and governments that are encouraging entrepreneurship and technological innovation,” said Kam. “These countries make fertile ground for venture capital investment in particular. “But the fractured regulatory environment can pose a challenge for investment, and investors characterise it as ‘diverse’, ‘fragmented’ and ‘segmented’. Alongside that, political uncertainty in some corners may be putting a brake on larger scale buyout investment, and it remains to be seen whether domestic investors will turn to the asset class in greater numbers,” added Kam. Despite the positive growth, southeast Asia accounts for less than 1% of the world’s $3.6 trillion of AuM in the private equity and venture capital industry. The majority (84%) of investors in Asean-focused funds are based outside the region, and just 53% of regionally-based institutional investors are actively allocating to private equity, Preqin found. ©2019 funds global asia

Sponsored Profiles

Sponsored feature: Asset allocators – How do you track your decisions?

Apr 06, 2020

Mark Barry, Head of Asset Allocation at Milestone Group, explores how a simple question can highlight opportunities to automate and streamline your asset allocation investment process.

Sponsored feature: How is DLT changing the global securities services landscape?

Oct 17, 2019

By Jeslyn Tan, global head of product management, securities services, at Deutsche Bank

Sponsored feature: A new base for fund distribution

Oct 16, 2019

To get the most value out of the digitisation of investment fund distribution, a blockchain-based infrastructure is fundamental. By Olivier Portenseigne, Managing Director and Chief Commercial Officer, Fundsquare.

Sponsored profile: Bridging the gap

Mar 11, 2019

Private equity is a core part of the business for Caceis’ Hong Kong office, which looks after clients in China and Europe. David Li, chief executive officer, explains why private equity enjoys strong client demand and how it is being used to fund China’s international infrastructure ambitions.

Executive Interviews

Executive interview: Understanding geographies

Apr 06, 2020

Margaret Harwood-Jones, co-head financing and securities services at Standard Chartered, shares her insights on platform standardisation, opportunities in Asia and regulatory change to encourage...

Executive interview: ‘Bull markets don’t die of old age’

Dec 12, 2019

Having a balanced portfolio in the midst of the longest expansion in history is an investment imperative, Chris Alderson, co-head of global equity and head of international equity at T Rowe Price...

Roundtables

Hong Kong roundtable: A ‘fragile Goldilocks situation’

Apr 06, 2020

With the global economy at a crossroads, our panel of experts share their thoughts on the market conditions, geopolitical volatility and growth opportunities. Chaired by Romil Patel in Hong Kong.

Singapore roundtable: A horizon to hold long-term assets

Dec 12, 2019

Panellists discuss the geopolitical fractures concerning asset owners, Singapore as a hub for fintech start-ups and why it makes sense to raise capital from a Variable Capital Company (VCC). Chaired by Romil Patel in Singapore.