India-focused private debt funds’ assets under management (AUM) grew by 26 times to $17.8 billion in 2023 from less than a billion dollars in 2010, a Preqin report said.
Despite solid growth, capital flows into Asia Pacific's private debt market lag behind the asset class's regional potential, as investor concerns persist.
Family offices have emerged as a rapidly growing segment of investors in Southeast Asia. Sovereign wealth funds such as Temasek and Khazanah have also been pivotal in expanding the region’s private markets, according to Preqin's latest report.
Private equity deals are likely to sustain their relatively high momentum in 2024, although asset managers may face challenges sourcing the right local talent.
Private equity opportunities are being viewed more favourably, according to a newly released Goldman Sachs survey. Some Asian asset owners have also expressed interest in new investments but fundraising lags, hit by concerns over China.
The swift adoption of ESG policies by sovereign wealth funds in China and Singapore has led to a surge in ESG assets under management in Asia, outpacing other major regions, according to a recent survey by Preqin.
Asia will continue to attract private equity investors, but these investors might also look at other markets and strategies in order to avoid pitfalls.