With the alternative assets industry continuing to grow in Asia and Rest of World markets, fund managers located in the US and Europe have begun to look for new opportunities within the region. According to the 2012 Preqin Special Report: Asian Private Equity, one of the reasons why interest in the region has grown is due to the continued growth of Asian economies despite challenging economic conditions compared to more developed financial markets. Many fund managers are now seeking new investments outside the traditional regions they previously have targeted.
Preqin Investor Network data currently tracks 28 private equity real estate funds targeting Asia and Rest of World markets managed by fund managers based in North America while a further 11 vehicles are raised by Europe-based GPs. Notable North American funds on the road include Canadia-based Brookfield Asset Management’s Brookfield Strategic Real Estate Partners Fund, which is seeking to raise $3.5bn, and US-based Starwood Capital Group’s Starwood Distressed Opportunity Fund IX, targeting capital commitments of $2.5bn. Of the Europe-based GPs currently seeking to raise capital for real estate funds, German SEB Asset Management is looking to raise €600mn through its SEB Asian Property Fund II, and French GP AXA Real Estate is looking to raise JPY 50bn through its Tokyo Office Property Fund.