Private Markets, Alternatives Assets in Asia to Reach $6 Trillion by 2025
18th June 2021 | Hong Kong
The Private Markets and Alternatives Assets in Asia is expected to reach $6 trillion AUM by 2025, in a report released on Alternative Assets in Asia-Pacific by Preqin. Private markets and alternative investments such as private equity, venture capital, hedge funds, real estate etc, have played an increasing role in asset allocations across Asia-Pacific, and is forecasted to grow at 28.3% compound annual growth rate from 2020 to 2025, growing from $1.7 trillion (Sept 2020) to $6 trillion in 2025. (AUM ~ Assets under Management)
” Private Markets, Alternatives Assets in Asia to Reach $6 Trillion by 2025 “
APAC, China, PE & VC Grows, Hedge Funds New Launches Drop
Asia-Pacific-focused Private Markets and Alternative Investments AUM has grown nearly 6 times over the last 10 years, reaching $1.71 trillion in September 2020. Dry powder (cash or reserves to be deployed) held by fund managers sits at a record $446 billion as of April 2021 (excluding hedge funds).
In the report on Alternative Assets in Asia-Pacific by Preqin, Greater China’s private equity and venture capital industry has AUM of more than $1.04 trillion, representing 13% of the global total and 61% of Asia-Pacific region.
Venture capital fund managers held AUM of $574 billion in September 2020, representing 36% of total Asia Pacific AUM.
New hedge fund launches dropped over 20% in 2020 to 117 new launches. At the end of 2020, Asia-Pacific hedge funds AUM is at around $156 billion.
Highlights of Report
Alternative Assets in Asia-Pacific Report by Preqin
- $14 billion total dry powder held by Australia-focused private equity & venture capital firms at the end of H1 2020, a new record.
- 20% increase in total capital raised by Australia-focused private capital funds in 2020 compared with 2019.
- Venture capital remains the dominant private equity strategy in Greater China with 46% of total AUM as of September 2020.
- As of September 2020, PEVC funds based in Greater China had combined AUM of over $1.04 trillion.
- Japan-based private equity AUM focused on buyouts reached $22 billion, double the total of five years ago.
- Dry powder as of September 2020 stood at $24 billion for Japan-focused private equity and venture capital funds combined, up 40% from the previous December.
- South Korea private equity AUM has been driven to a record $102 billion as of September 2020.
- South Korea-focused buyout funds raised a record $17 billion in 2020.
- ASEAN-focused PEVC industry assets under management (AUM) stood at a record $33 billion as of September 2020, almost doubling in five years.
- In 2020, ASEAN saw the completion of 400 venture transactions valued at a combined $8.2 billion.
Preqin Founder and CEO, Mark O’Hare:
“Asia-Pacific has been an engine driving global growth for more than a decade now and is in the middle of an historic transformation. Investor demand to access this fast-growing and diverse region remains robust, while structural challenges to deploy capital are easing.
The dawn of the Asian Age – or rather the re-emergence of the region’s economic dominance on the world stage – has been widely anticipated.”
- 2020 Private Markets & Alternatives Assets in Asia AUM at $1.7 Trillion
- Private Markets, Alternatives Assets in Asia to Reach $6 Trillion by 2025
- 2020 China Private Equity and Venture Capital AUM at $1.04 Trillion, Southeast Asia at $33 Billion
- 2021 Q1 Global Hedge Funds AUM at $4.1 Trillion, $162 Billion AUM in APAC
- 2020 Sovereign Wealth Fund AUM at $7.84 Trillion, Norway Largest with $1.27 Trillion
- Mercer: White Paper on Optimizing Portfolio in Private Markets for LPs in 2021
- BlackRock and iCapital Network to Provide Wealth Managers with Access to Private Market Investments
- Credit Suisse Appoints Alois Müller as Head of Private & Alternative Markets APAC, Target $7.8 Billion Assets Yearly
- UBS and Partners Group to Give UBS Clients Access to Private Markets Investments
- $9 Trillion Asset Manager BlackRock, CCB & Temasek JV Receives License for Wealth Management in China
Caproasia.com | The leading financial website for financial professionals, professional investors and HNW investors. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Quicklinks: Caproasia Access | TFC | Caproasia | Jobs