VIDEO: CHAMP Private Equity's John Haddock

"It's opening up a legitimate new area of interest, which means divestment opportunities are greater than what they were," says Haddock.

Although exit alternatives are considered when making an investment, the chances of an Asian corporation being interested in an asset doesn't necessarily impact overall strategy - largely because there are no guarantees that a certain type of buyer will be there in five years time.

"A good business tends to take care of itself in terms of an exit or having a wider opportunity as it relates to exit alternatives," Haddock adds.

Australian private equity firms are under pressure to show they can return money to investors given the challenging fundraising environment. Haddock agrees times are tough, but argues that firms with strong track records will continue to be supported.

However, all GPs must deal with changes in their LP bases. Since it launched its first fund in 1999, CHAMP has seen contributions from Australian and US investors fall, particularly in the wake of the global financial crisis. LPs from other geographies have consequently become more prominent.

"We've seen good support out of Asia, Europe and the Middle East, and then we've seen the introduction of the sovereign wealth funds in the past few years," Haddock says. "There has been a continued internationalization and we feel we have a good spread across the globe and across different kinds of money managers."

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