Asia-Pacific-based Institutional Private Wealth Investors in Private Equity – December 2013

by Valerie Lee

  • 06 Dec 2013
  • PE

The surge of wealth in Asia has seen, more than ever before, an influx of ultra-high net-worth individuals in the Asia-Pacific region. This has caused a spike in institutional private wealth investors such as wealth managers and single and multi-family offices in the Asia-Pacific region. Preqin’s Investor Intelligence currently tracks 61 Asia-Pacific-based institutional private wealth investors which manage high-net-worth individuals and families in Asia.

With the growing number of millionaires in the Asia-Pacific region, it is clear that this investor type will continue to grow in coming years. As part of their investment strategy, these institutional private wealth investors utilize the private equity asset class for potential above average returns with a longer-term horizon.

Breaking down institutional private wealth investors, single-family offices account for 26% of the pool, followed by multi-family offices at 20%, with the remaining 54% being wealth managers. Eighty-eight percent of these Asia-Pacific-based institutional private wealth investors will be actively investing in the asset class over the next 12 months, while 7% will consider doing so and the remaining 5% will maintain a longer-term investment approach with regard to making new private equity fund investments.

Far East and South Asia are home to the largest proportion of Asia-Pacific based institutional private wealth investors that are interested in the private equity asset class, each representing 31%. Coming closely behind is Greater China, accounting for 25%, and the remaining 13% are located in the Australasia region. Given the geographical make-up of institutional private wealth investors investing in private equity, it is no surprise that the majority (47%) express a preference for Asia-focused funds.

Venture capital funds, encompassing both generalist and stage-specific funds, are the preferred fund type amongst the Asia-Pacific-based institutional private wealth investors investing in the private equity asset class, with 79% holding a preference for this strategy. Buyout vehicles are the next most favored fund type, with 62% considering buyout funds when seeking their next private equity commitment. Also attracting significant interest are growth funds which account for just over 58% of the corpus looking to invest in this fund type. Interestingly, 62% of institutional private wealth investors in the Asia-Pacific region are actively willing to invest as a first-close investor, and a further 15% will consider doing so on a case-by-case basis.

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