In 2017, industry experts correctly predicted that asset owner demand would continue to drive the rapid expansion of private debt markets both globally and in Asia over the next decade.
QIC seeks to capitalise on the strong performance of private debt in Australia and New Zealand on behalf of State Investments amid higher interest rates and inflationary pressure.
Most family offices in Asia are ready to get started with ESG impact investing, but the question they have is “how?”, according to Robert Kim of professional athlete Jeremy Lin’s family office.
Inflation will continue to place pressure on assets, and the insurer will remain defensive On interest rates and equities, said CIO Mark Shi.
Asia-Pacific asset owners have lost interest in private equity, although alternative asset allocations, in general, have increased from 15.3% to 21.5% over a six-month period, according to AsianInvestor’s most recent survey.
Dry powder has been slow to deploy amid lower interest rates pre-2022, the pandemic and difficulty in finding deals, industry insiders told AsianInvestor.
Institutional investors set aside capital for private debt during the era of low rates, but the alternative asset class could still be attractive in the current environment, according to Australia’s Queensland Investment Corporation.
Demand for private markets investments by asset owners and managers is expected to rise over the next five years as investors seek higher yields and greater diversification, according to a recent survey by State Street.
A new report by McKinsey & Company outlines a vision for global trade finance that could allow institutional investors to help fill the broadening financing gap.
Big shifts such as consolidations among asset managers will likely happen in the burgeoning private debt markets in Asia. How should global asset owners tap into the private credit boom?
Hesitancy aside, institutional investors eye Australia and Japan as promising geographies for private debt investments within Asia Pacific, with Greater China and Korea on the periphery.
China and India are more obvious choices for AustralianSuper to consider in Asia Pacific, but the super fund currently lacks the expertise and prefers to stick to the US and Europe.