LPs positive on Asia, weakening on China - survey

India, Japan, Taiwan, South Korea and Australia all look more promising than they did in 2012, Coller Capital's Global Private Equity Barometer survey found. The size of the turnaround in sentiment on Japan is particularly large. And while the risk-reward in Indonesia and Malaysia is not as positive as three years ago, fewer respondents say the situation is getting worse.

As for China, one third of LPs believe the risk-reward balance is deteriorating. This is likely driven by a number of factors, including the country's slowing economic growth and heady valuations at a time when public markets are at record highs.

North American buyouts have been the strongest performer globally, with nearly half of LPs seeing annual net returns in excess of 16%. European buyouts placed second, ahead of Asia Pacific buyouts, while North American venture and Asia Pacific venture are nearly tied in fourth.

Half of European LPs and roughly a third of their North American and Asia Pacific counterparts say their aggregate commitments to private equity are below allocation targets, and the majority expects to increase allocations to the asset class over the next 3-5 years.

The Coller survey is based on the views of 113 investors in private equity. Asia Pacific accounts for 18% of respondents, with the rest more or less equally split between Europe and North America.

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• Topics
• Performance
• LPs
• Fundraising
• Greater China
• Asia
• China
• LPs
• Performance
• Coller Capital
• Fundraising