Tag : preqin

Some 40% of Asian institutions plan to invest in hedge funds, but global and large-sized strategies are most likely to see the biggest inflows, a Preqin survey indicates.

Large fund-of-private-equity funds being raised in the mainland will bring capital to domestic private equity vehicles, which are estimated to number in the thousands.

Second-quarter fund closes indicate a rise in capital-raising for Asian property and infrastructure, but are a fraction of the amount raised for European infrastructure and North American real estate.

Discounting KKR’s $6 billion fund, the Asian PE fundraising market saw a significant decline in the second quarter, showing signs of a slowdown in the region.

Some $18 billion in regional private equity AUM is trapped in inactive vehicles, with nearly half of Indian funds thought to be among the walking dead.

Pensions are the biggest contributors to private equity inflows, but family offices have the largest portfolio exposures to hedge funds and PE by percentage of assets, says Preqin.

This year's sum is nearly half of the $11.2 billion raised by Asian managers in the same quarter last year, with over half of capital attributed to a fund run by Hong Kong's RRJ Capital.

Assets managed by Asian funds of hedge funds have fallen by half to $16 billion on the back of poor performance and a growing trend for direct investments by institutions.

More private equity investment is expected to flow from Asian LPs as regulations in the US and Europe curb allocations to the asset class.

An estimated $110 billion is expected to flow into Asian commercial real estate this year, making up one-quarter of the global total, forecasts Jones Lang LaSalle.

After a few years of below-benchmark returns, hedge fund managers will need to ring up strong performance numbers in order to sustain investor inflows.

New private equity fund launches are forecast to lead to a cash crunch, with managers in Asia contending with strong investor preference for US and European funds.