Bonderman hails emerging markets at AVCJ Forum

Noting that TPG was probably the first major PE player to move into Asia, opening a China office in Shanghai in 1994, Bonderman also cautioned that there is a risk of overheating and overexcitement around the Asia story. "When more capital is shifting allocations into high markets, you get a bad result." He also noted that an overwhelmingly high proportion of investors expect comparatively better performance out of emerging markets.

Speaking on RMB funds, where TPG has recently initiated two in Shanghai and Chongqing, Bonderman said, "The challenges are several. You need to convince some governments somewhere to be partners and provide some support. That has taken a while. The second part has been to convince those who you would like to see in your fund, to help you and assist you to raise the right kinds of capital from the right kinds of people."

Ultimately, Bonderman noted that in emerging markets, "what we're seeing is an emerging middle class, and half a billion people and $2.5 trillion of income in the next little while. These developments are extremely important if you are looking at where next to make investments."

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• Topics
• People
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• David Bonderman