LPs to increase exposure to Malaysia, Indonesia - survey

Of the 140 global institutional investors that participated in the survey, almost 40% said they would invest in Malaysia, which is the largest increase in exposure in the Asia Pacific region. Currently 25-30% of LPs have exposure to Malaysia, and fellow emerging markets Indonesia and Taiwan, mainly through PE funds with a wider Asian focus.

LP interest in Indonesia could surpass that in Korea over the coming years, while investment in China, India and Australia will remain stable. Over half of LPs polled have PE interests in China and India, and 40-50% of LPs have exposure to Australia, Japan and Korea.

"Reflecting their readjustment to the current market, people are looking more at the real emerging side of Asia to produce performance" said Hiro Mizuno, head of Asia at Coller Capital. "If someone came to Asia 10 years ago looking for high returns, India or China are no longer their destinations. They have to go to Indonesia or Malaysia to continue to achieve that."

However, almost 30% of LPs are responding to the record volume of unrealised commitments by slowing the rate of their new PE commitments. One in 10 said they are selling PE interests in the secondaries market.

Reflecting the growth in debt funds since the financial crisis, half of LPs have either invested in private debt funds or are considering such investments, compared to 30-50% who have commitments to funds-of-funds and venture capital.

More than one third of respondents plan to increase their target allocation to credit investments over the next year.

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• Topics
• LPs
• LPs
• Malaysia
• Indonesia
• Coller Capital
• Southeast Asia