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Laxman Pai, Opalesque Asia: Asia-Pacific to drive growth in overall private equity AUM over the next five years expects Preqin. "We forecast a CAGR of 28.2%2, taking AUM from $1.26tn in 2020 to $4.36tn in 2025,"- said the report.
Asia-Pacific's pull on private equity investors is strong. Within the region, fund managers surveyed by Preqin feel Southeast Asia presents the best opportunities for 2021 (50% of respondents), followed by China (38%) and India (35%).
Private equity investors had a different order of preference, with China in the lead (55%), followed by Southeast Asia (37%) and India (25%), but the same three were preferred over other emerging markets.
The report also said that Asia-based investors have been aggressively deploying capital; the median allocation rose from 3.6% to 5.0% over 2020.
"As the world's economic center shifts eastwards, the alternatives landscape is changing with it. The percentage of private equity AUM in Asia moved into double figures in 2011 and has climbed steadily since to a record 28% in 2020," the report added.
Asia's share of capital coming into the asset class has increased rapidly, from 8% in 2016 to 15% in 2020. Negative cash flow to investors from Asia-based funds may slow growth over the next few years, but the long-term drivers will prevail.
In many respects, Asia is private equity's 'promised land.' The strengthening of intraregional trade following the signing of...................... To view our full article Click here
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