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Asia-Based Investors with an Appetite for Europe-Focused Private Equity Funds – November 2012

by Aveline Tan

  • 09 Nov 2012
  • PE

There are 80 private equity investors based in Asia (including fund of funds managers) that are currently seeking exposure to Europe-focused private equity funds. Collectively, they manage over $9.9tn in total assets, and allocate an aggregate capital of $56.2bn to private equity. The majority of these investors are based in relatively developed Asian countries, such as Japan (39%), South Korea (18%) and Singapore (11%). The remaining investors operate from Hong Kong (9%), Taiwan (9%) and other Asian countries including, Brunei, China, India, Kazakhstan, Malaysia, Philippines and Thailand.

By investor type, 20% of Asia-based investors with a preference for Europe-focused private equity funds are insurance companies. This is followed by banks (14%), corporate investors and pension funds which account for 13% of the investor pool each. The remainder is split among sovereign wealth funds (10%), fund of funds managers (6%), family offices (6%), asset managers (5%), government agencies (5%) and others.

A significant proportion of Asia-based investors which seek to invest in Europe-focused private equity vehicles have a preference for buyout funds (78%) and venture vehicles (70%). Following which, 66% of investors have an interest in growth vehicles. Forty-eight percent of this investor pool has a preference for distressed vehicles and 33% will commit to funds of funds.

The majority of Asia-based investors looking to gain exposure to European private equity funds will consider investment opportunities offered by first-time fund managers. A quarter of Asia-based investors will invest in first-time Europe-focused funds, 15% will consider doing so and a further 15% will invest in spin-off teams raising their maiden funds.

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