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: 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.

SPONSORED FEATURE: Market knowledge key to fund distribution in Asia

Jan 11, 2019

The highly fragmented investment markets in the Asia-Pacific region require detailed knowledge of each market’s unique characteristics and framework. By Lou Kiesch, Partner, and Marc Noirhomme, Director, at Deloitte Luxembourg.

Executive Interviews

Executive interview: Timing the market

Oct 17, 2019

Amy Cho, Schroders’ Hong Kong chief executive and regional head of intermediary clients, tells Romil Patel about Hongkongers’ love of investing, staying nimble in a volatile market and following...

Interview: Asia’s sweet spots

Jul 05, 2019

As the US-China trade war ramps up with a hike in levies, Tai Hui, chief market strategist for Asia-Pacific at JP Morgan Asset Management, tells Romil Patel where he identifies investment value.


Roundtable: Priming for Asia’s growth

Oct 17, 2019

Panellists discuss expanding product capability across Asia-Pacific, the opportunities and regulatory challenges around data and the prospects for ETFs in the region. Chaired by Romil Patel in Hong Kong.

ESG roundtable: Are the ESG stars aligning across Asia?

Jul 05, 2019

Our panel of experts discusses driving higher ESG asset allocation in Asia, growing calls to address the global climate crisis and the importance of governance. Chaired by Romil Patel in Hong Kong.