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Asia-Based Private Equity Investors Interested in Emerging Markets

by Wan Ping Chia

  • 22 Jun 2012
  • PE

There are a total of 176 Asia-based investors with an active interest in private equity funds that focus on emerging markets. This pool of investors has expressed interest in investing in one or more the emerging markets, including Africa, East Europe, Israel, Middle East and Greater China. These 176 investors have more than $12tn in aggregate funds under management, and have more than $93bn invested in the private equity asset class.

China-based LPs make up the greatest proportion of Asia-based investors that have an appetite for emerging markets. They account for over one-quarter (27%) of such investors. Japanese firms follow closely behind, with a proportion of 25%, while South Korean investors make up a further 15%. Although Singaporean investors who have a preference for emerging markets account for only 5% of the investor pool in terms of number, they account for 30% of the overall aggregate private equity commitments from Asian investors that show a preference for emerging markets.

One high profile private equity investor in China is the $460bn sovereign wealth fund, China Investment Corporation (CIC), which has allocated about $11bn to the private equity asset class. Its private equity portfolio includes commitments to buyout, fund of funds, growth and secondaries vehicles. With a global outlook, CIC has interests in a variety of emerging markets including Asia, Greater China and South America. It is also largely sector agnostic and is willing to consider first-time funds. 

Korea Venture Investment Corporation (KVIC), with $1.5bn of assets under management, is another prolific Asia-based private equity investor that has an appetite for opportunities in emerging markets. It has its assets wholly invested in private equity funds and seeks opportunities in a variety of fund types including buyout, distressed, growth and venture capital vehicles. Its private equity portfolio mainly consists of investments focused on Asia, including Far East and Greater China. The government agency is open to a diversified variety of sectors and will consider first-time funds. It may also co-invest alongside fund managers.

 

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