Ask the experts: three key questions

Q What is your view on fundraising activity over the next 12 months?
A We are seeing an increase in fundraising activity from investors across all asset classes in Asia Pacific. However, the funds being raised seem to be primarily targeted at institutions in North America, including pension funds and sovereign wealth funds, indicating a comfort level with the risk and reward ratio in Asia. Having said that, we are also seeing Asia-focused funds in direct competition for capital with funds focused on mid-cap America. There has been less focus on fund raising from Europe, but we don't think AIFMD is the entire cause for this, but it clearly doesn’t help! This is true for established and well-recognised fund houses. For new entrants, including a number of Chinese Fund Management companies who are setting up first-time funds and therefore lack the track record, traditional institutional investors have shied away and fundraising has primarily come from domestic Chinese investors. In addition for new start-ups in Asia, North American investors are expecting to see some serious capital raised locally before committing from afar. The Middle East also remains a market where there is at least perceived to be a lot of capital available for deployment.