A Snapshot of Natural Resources Firms in Asia-Pacific – February 2016

by Ryan Soon

  • 12 Feb 2016
  • NR

Preqin’s Natural Resources Online tracks 77 fund managers based in Asia-Pacific that are active in the natural resources asset class, although this is significantly less than the numbers in the more established markets of North America (405) and Europe (184).

As two of the world’s largest exporters and consumers of natural resources it is unsurprising that Australia and China make up the largest proportion of natural resources fund managers in the Asia-Pacific region (22% and 18% respectively). Interestingly, Australia- and China-headquartered fund managers trail South Korea-based natural resources firms in terms of capital raised in the past decade, short of the $6.6bn secured by South Korea-based managers by $1.5bn and $2.7bn respectively.

In terms of strategy, investments in the energy sector are favoured by two-thirds of Asia-Pacific-headquartered natural resources firms, while a significant proportion also invest in agriculture/farmland (31%) and metals & mining (19%). Within the energy industry, natural gas, solar, oil and wind are among the most sought-after sub-sectors for Asia-Pacific-based firms. However, depressed energy prices could sway fund managers’ and investors’ appetite in the near future.

Asia-Pacific-based natural resources fund managers hold an estimated $9.5bn in capital available for investment and with political pressure to invest in renewable energy, food and agTech, these sectors could see further investment from fund managers in the region.

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