Asia LPs are raising PE allocations, says Warburg Pincus’ Landy
Joseph Landy, co-president of Warburg Pincus, said that limited partners in Asia are maintaining or increasing their allocations to private equity on a percentage basis, despite the global economic downturn.
"Most of them are trying to find out how to put more money into [the asset classes]. It's one area where one can still generate nice returns," Landy said at a conference in New York, The Wall Street Journal reported. However, he added that the LPs he has been talking to - which include sovereign wealth funds, among others - are still subject to internal constraints as to what they can invest in.
Landy noted the contrast with five years ago, when few of the LPs were from Asia. The private equity firm is reportedly looking to raise a $12 billion buyout fund, having invested more than 80% of its current $15 billion fund, raised in 2008.
Prequin estimates that global fundraising could reach $300 billion in 2011. A total of 1,721 funds are believed to be in the process of fundraising, with a collective target of $692 billion.
Warburg is one of a host of leading US and European buyout firms expected to launch their latest round of mega-funds in the second half of 2011 - the first time many have tapped the market for large sums of money since before the global financial crisis. The Carlyle Group, Bain Capital, KKR, Vestar Capital, Thomas H. Lee Partners, Apax Partners, Permira, EQT Partners and BC Partners are among those tipped to seek investment alongside a host of leading venture capital players.
More on Fundraising
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.