Insights into Australasia-based Private Equity Fund Managers – March 2013

by Wan Ping Chia

  • 15 Mar 2013
  • PE

There are currently 130 private equity fund managers based in the Australasia region, according to Preqin's Fund Manager Profiles database. These fund managers have successfully raised an aggregate $35bn and have aggregate dry powder of $9.6bn still to be invested.

Like other mature private equity markets such as the US and Europe, venture and buyout are the most popular strategies amongst Australasia-based fund managers. Fifty-one percent of GPs based in this region include venture stage companies within their investment focus, either as a part of a larger strategy or as a main firm strategy. Fund managers who are targeting buyout opportunities only lag slightly behind, with 47% investing in this strategy. Interestingly, the same proportion of Australasia-based GPs (47%) will include growth opportunities within their investment frameworks. Other strategies employed by this pool of fund managers include investing in natural resources, mezzanine and distressed private equity opportunities.

A predominant proportion of Australasia-based fund managers are interested in investment opportunities within their domestic region. Sixty-five percent of these GPs solely target investments in Australasia, while a further 30% include Australasia as part of a wider geographic scope. In contrast, only 2% of Australasia-based GPs exclude Australasia out of their investment focus, while other Australian-based GPs will invest globally without specifying their investment foci.

In terms of Australasia-based GPs that include investments outside the region, 17% include a focus on Asia, while another 14% will invest in other parts of the world outside of Asia-Pacific. Non-Asia-Pacific regions targeted by these GPs include the US, the UK and other emerging markets such as South America.

Currently, there are 21 private equity funds (excluding fund of funds and real estate vehicles) on the road managed by Australasia-based GPs which are seeking to raise $4.8bn in aggregate commitments. One of the most prominent private equity funds in market which includes Australia within its geographic focus is Macquarie Crop Partners, a natural resources fund targeting $800mn. Managed by Australia-headquartered Macquarie Infrastructure and Real Assets (MIRA), the fund will target opportunities situated in Australia and Brazil.

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