Asian LPs deploy more capital in private equity – Preqin

When asked about their longer-term plans for private equity, more than half of the 50 Asia-based LPs surveyed by Preqin in June said they planned to increase commitments as a portion of total assets under management over the next 3-5 years. Only 6% of respondents intend to reduce their PE allocations over the period, with the rest expecting levels to remain fairly stable.

As for fund type preferences, 44% see the small to mid-market buyouts presenting the best opportunities globally. This was followed by growth on 30%, large to mega buyouts on 26% and venture capital on 18%.

The majority of Asia-based LPs regard their home region as holding the greatest private equity investment potential. This is unsurprising as investors tend to feel more optimistic when investing closer to home, but it corresponds to LP sentiment on a global scale.

Half the respondents in Preqin's global survey identified Asia as the most attractive emerging market, followed by South America on 38% and Africa on 33%. China was singled out as the fourth most attractive destination.

Asia-focused funds account for three-quarters of the capital committed to emerging markets vehicles so far this year. This compared to 69% in 2012, but it continues a trend of dominance that stretches back to 2005. More than 80% of global LPs made commitments to Asia-based funds in the first half of 2013, well ahead of 47% for Europe and 55% for North America.

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• Topics
• Fundraising
• LPs
• Fundraising
• LPs
• Asia