News · Publication · Video
LGT Capital Partners Insights whitepaper on building a modern Asia-Pacific private equity portfolio now available
The latest edition of the LGT Capital Partners Insights series examines the evolving private equity market in Asia-Pacific (APAC). Geopolitics and domestic developments have altered the private equity landscape in the region, but it still offers potential for attractive returns. Building a balanced portfolio tailored to these new conditions requires a nuanced approach, diversification across the region, on-the-ground expertise and access to the right investment opportunities.
In the past, the Chinese private equity market was the dominant target as many believed that successfully investing in the region simply meant tapping into China’s dramatic growth. Investor sentiment towards the country has since changed drastically and capital flows have receded. However, China’s economy remains robust by international standards and the reallocation of capital away from the country provides a clearer view of where many believe real value lies.
Some of this capital has flowed to India. However, following the recent hot market, only those with longstanding experience and access to this market will be able to capture value. In contrast, the advanced economies of Japan, Australia and Korea can provide stability and steady distributions to paid-in capital (DPI) for investors.
The LGT Capital Partners team believes that a successful private equity strategy for APAC must be built on a balanced and diversified approach, without overweighting any particular geography or segment. It is also essential to effectively use the different access points to private equity, i.e. primaries, secondaries and direct investments.
