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India top choice in Asia for PE funds, investor survey shows
In India, limited partners were more concerned about scarcity of PE talent, competition for deals, and a challenging exit environment
India leads emerging markets (EMs) in Asia with the best risk to reward balance for private equity (PE) investments, a Coller Capital survey of investors in PE funds showed. India is followed by Japan and South Korea.
Over the short-term, scarcity of PE talent and established general partners (GPs)–or private capital fund managers–will be a key hurdle in all three countries, the limited partners (LPs) surveyed in the 41st edition of the Global Private Capital Barometer said.
In Japan and South Korea, the limited partners said they are cautious about rising competition and reluctance to share company ownership, thereby affecting PE investment prospects.
In India, they were more concerned about scarcity of PE talent, competition for deals, and a challenging exit environment.
The 2024-25 winter edition of the survey of private market investor sentiment showed that “pan-Asian funds have emerged” as a key avenue for investment in Asia (ex-China), “as they are likely to offer an optimal balance between risk and exposure.”
“Asia-Pacific LPs’ strong appetite to boost investments in fast-growing asset classes such as secondaries, private credit and infrastructure speaks to the growing maturity of the market,” Peter Kim, partner, head of Asia, at Coller Capital, said.
Private capital includes private equity, private debt, venture capital and real assets. The barometer examines private market trends, the competitive landscape and “how LPs are navigating the evolving environment against the backdrop of an improving macroeconomy.”
The survey was conducted for Coller Capital from 12 September to 30 October by Arbor Square Associates, a consultancy that has operated in the alternative assets industry since 2006.
The Barometer surveyed 110 investors from regions including North America, Europe, Asia-Pacific, and rest of the world (including Middle East and North Africa), who collectively manage at least $1.9 trillion in assets.
Coller Capital, founded in 1990, is one of the world’s leading investors in the secondary market for private assets.
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