Kerrine Koh, CFA, CAIA’s Post

Active Investors Shrink, Top Funds Dominate The Asia-Pacific PE market saw a 25% drop in active investors in 2023, while the top 20 funds captured 47% of deal value—a clear shift in market dynamics. Want to explore how this impacts your strategy? Connect with us! https://www.alehar.com/ #AsiaPacific #PrivateEquity #AleharInsights

While Private Equity (PE) is a global industry, there are some notable differences in how it operates in the US compared to Europe: 1️⃣ Investment Thesis and Holding Period - US PE firms often focus on rapid growth and value creation to exit investments within 3-5 years. There is a stronger emphasis on individual achievement and entrepreneurial spirit. - European PE firms may have a longer-term outlook, with holding periods of 5-7 years or more. 2️⃣ Operational Involvement - US PE firms are known for taking an active role in the operations of their portfolio companies. They bring in operating partners and drive aggressive growth strategies. - European PE firms tend to be more hands-off, allowing management teams to run the business while providing strategic guidance. They are less likely to make major operational changes. 3️⃣ Exit Environment - The US has a more developed IPO market, with many PE-backed companies going public. Trade sales to strategic buyers are also common. - Europe has fewer IPOs, with more PE exits happening through secondary buyouts or sales to family offices and other financial buyers.

#Secondary private market deals can provide an investor with: ♦ Super attractive returns   ♦ Shorter periods of investment  ♦ Invest alongside major funds and Top investors in the world    Secondary transactions in private firms are growing at a fast pace in the US, and Europe is following.     The main drivers of this market are: -There are 1000 unicorns of which only 20, 25 have liquidity  -The timeframe to reach an IPO went from 5 years in 2000 to 15 years in 2023  -LPs and early-stage investors have completed their cicle for their investments and need to exit  -Employees that have been in a company for many years need to cash their shares to cover living expenses and personal investments    This opens the possibility of buying shares in companies valued in billions, and whose cap table includes the largest and most knowledgeable investment firms. Q3·ventures connects you with top quality deals and the best experienced Managers in the sector, to have all aspects of a secondary transaction taken care of.

🚀 Dive into the dynamic landscape of Southeast Asia's private equity secondaries markets!  ℹ️ As Asia Pacific grapples with a challenging exit environment, characterized by dwindling IPOs and cautious financial sponsors, family offices are turning their gaze towards innovative investment avenues. At Alta we are particularly, seeing family offices with a VC investment mindset, seizing the opportunity to fuel growth in early-stage companies across Southeast Asia.More interestingly, VC funds, who usually are sellers in secondary trades, are reevaluating high conviction names through secondaries to establish a portfolio position. Thank you AsianInvestor for giving me the opportunity to share my thoughts on the growing secondaries markets! With 2024 on the horizon, the spotlight is set to shine brighter on secondaries as a preferred exit strategy. 🔍 Keep an eye out for the emergence of GP-led secondaries and continuation funds, offering a new frontier for liquidity exploration. Kelvin Lee | Benjamin Twoon | Khai Lin Sng | Willie Chang | Lee Lian Foo |Muzahir Degani | Edrea Tan | Jamie Yee | Indira Smita | Natalie Rusli | Maya Deviana | I. Radith Soeriadinata | Adrian Koh | Riya Aris #Alta #secondaries #privatecapitalmarkets #AlternativeAssets #capitalmarkets #investments #fintech

MoFo Singapore Partners Shirin Tang and Yemi Tépé recently spoke at the Private Equity Asia Forum which concluded on Tuesday with over 300 private equity leaders participating in this event in Singapore. Organized by the Markets Group, the #PEAsiaForum brought together leading private equity allocators and asset managers for a day of networking and insightful discussions on the future of private equity, private debt, infrastructure, technology, allocation plans, and real asset investing. 💡 Panel Discussion: Secondaries, Co-investments, & Funds of Funds 💡 Moderated by Singapore Managing Partner Shirin Tang, this panel was joined by Amit Sachdeva of AlpInvest Partners, Tim Huang of Lexington Partners and Amit Gupta of TPG NewQuest. The panel discussed the growing trend among private equity investors to utilize the secondary market and strategies for leveraging secondaries, co-investments, continuation funds, and funds of funds to boost returns. 🔎 Panel Discussion: Private Credit—Challenges, Risks, and Opportunities 🔎 Moderated by Global Co-Chair of the Finance Group Yemi Tépé, this panel was joined by SJ Lim of KKR, Stephen Allan of BlackRock, Paul Kennedy of Bain Capital and Fi Dinh of MUFG Investor Services. The panel explored how private credit is uniquely positioned to maintain resilience and seize attractive investment opportunities during this unprecedented market transition. Panelists also shared their insights into evolving dynamics within the private credit markets and their perspectives on the future of this asset class. Read more: https://lnkd.in/gtuUe9yg #marketsgroupPE

In recent weeks I have spoken to 8-10 private equity contacts representing 1B-5B AUM Asian funds and 80B-100B AUM North American and European funds. Despite their differences in size, scale, and investment strategies, it was interesting to observe common themes and comments: - Virtually everyone one of these funds are transacting on a live deal - Most are informally soliciting interest on at least one of their assets. The most frequently mentioned industries are manufacturing, corporate services, and the education space - Investor views on risk are beginning to change – though there remains a lot of economic and geopolitical uncertainty, there is greater acceptance that this is the type of market funds will need to operate in - Lead times on transaction have increased 30-40%, prudence is being exercised and buyers are conducting extra layers of due diligence It has certainly been a flat H1 in Asia Private Equity. However, the points above indicate market activity is indeed ticking upwards, and barring any extraordinary events, the expectation is that H2 will certainly be more buoyant, and the momentum should spill into 2025. The great part of covering private equity is having the opportunity to work across a wide array of funds and portfolio companies in various industries and markets. I am hopeful and excited for what’s to come and look forward to partnering with new and familiar clients to fill talent gaps across their businesses. To a strong finish to 2024. #leadershiphires #portfoliooperations #privateequityasia

Even in these challenging times, the private equity sector is gearing up for a boost as companies look for strategic partnerships and investment to handle market shifts. According to a recent Bloomberg article, recent economic uncertainties have opened the door for more deal activity, giving private equity firms a chance to make a real impact. It’s exciting to see how private equity can transform industries and strengthen the economy during these times, paving the way for a more resilient and dynamic future. #PrivateEquity

𝐃𝐢𝐬𝐜𝐨𝐯𝐞𝐫 𝐭𝐡𝐞 𝐓𝐨𝐩 𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐄𝐪𝐮𝐢𝐭𝐲 𝐅𝐢𝐫𝐦𝐬 𝐃𝐨𝐦𝐢𝐧𝐚𝐭𝐢𝐧𝐠 𝐭𝐡𝐞 𝐈𝐧𝐝𝐮𝐬𝐭𝐫𝐲 𝐢𝐧 2024 In an era where private equity shapes the global financial landscape, understanding the leaders driving this sector is crucial. Here are the key highlights from our recent analysis of the world's largest private equity firms based on capital raised over the last five years: - Blackstone Leads the Pack - Raised $125.6 billion from 2018 to 2023 - Marked the sixth time it has topped the PEI 300 in the past decade - Total assets under management surpassed $1 trillion this year 𝐔.𝐒. 𝐅𝐢𝐫𝐦𝐬 𝐃𝐨𝐦𝐢𝐧𝐚𝐭𝐞 - 36 out of the top 50 private equity firms are based in the United States - Together, these firms raised $1.4 trillion over the past five years - The top 300 private equity firms globally raised $3.13 trillion, up $530 billion from last year. Get the List of all 300 PE funds on our insights page: https://lnkd.in/gjVk7cjK 𝐆𝐥𝐨𝐛𝐚𝐥 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬 - Europe, particularly London, remains a stronghold, amassing $592 billion over five years - Asia-Pacific firms, especially those in mainland China and Hong Kong, faced challenges with many dropping in rank Explore these insights and more on our dedicated insights page. Stay informed on the latest trends and industry analysis by subscribing to our 𝐧𝐞𝐰𝐬𝐥𝐞𝐭𝐭𝐞𝐫. Visit our Insight Page for a deeper dive and subscribe to our newsletter to stay ahead in the private equity world. Read More here: https://lnkd.in/gjVk7cjK

What are the strengths of European private equity’s mid-market? ·      €357 billion of capital under management in 2023 ·      16.90% annualised net return to end-2023, outperforming other segments and regions ·      Mid-market funds added 7.9% more jobs in 2021-2022, almost four times the average 2.0% growth across Europe Download Invest Europe’s Mid-Market Private Equity report ➡️ https://bit.ly/IE-MMReport #MidMarketImpact #BuildingBetterBusinesses #PrivateEquity #MidMarket #VentureCapital #employment #growth

Equities, particularly in the US, have been strong through the first half of the year. Mega-cap tech led the charge, but where do we go from here? Marc Pinto, Head of Americas Equities, and Lucas Klein, Head of EMEA and Asia Pacific Equities, explain why they expect a broadening opportunity-set that could help unlock new value for investors. See their key thoughts by swiping below and click here for their full insight ▶https://lnkd.in/gyWNxrxW #JHI #JanusHenderson #BrighterFutureTogether #ClientsComeFirst #MarketGPS #MGPS #Equities #Asia For professional investors only.