India, Japan and South Korea – improving attractiveness in the eyes of LPs
India topped the list of emerging private markets in Asia, where two-thirds of respondents feel that the attractiveness of the risk/reward equation for private equity is improving, followed by Japan and South Korea.
Exploring some of the key considerations of investing in the region further, we found that limited number of established GPs and PE talent overall was perceived by LPs as a key obstacle to PE investment across all three countries in the next three years. Japan and South Korea exhibited a relatively similar profile, with investors acknowledging that escalating competition for deals and hesitance to share ownership in companies could influence private equity investment prospects in these markets.
Opinions on India showed that scarcity of PE talent and competition for deals are at the forefront of LPs’ concerns. However, investors also identified a challenging exit environment as an investment hurdle.
It is perhaps not surprising that pan-Asian funds have emerged as the most important avenue for investment in Asia (ex-China), as they are likely to offer an optimal balance between risk and exposure.
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In this edition of the Barometer, we found that India topped the list of attractiveness of emergin...
Global investors’ growing optimism towards Asia-Pacific private markets is evident in this issue of the Barometer. Asia-Pacific LPs’ strong appetite to boost investments in fast-growing asset classes such as secondaries, private credit and infrastructure speaks to the growing maturity of the market.
