According to executives at the Asia PE-VC Summit 2024, a slowdown in exit activity is causing turbulence in private equity (PE) dealmaking in Asia.
During the summit’s opening session, industry leaders from firms like Partners Group, KKR, Warburg Pincus, Pantheon Ventures, and ewpartners emphasized Asia’s long-term growth potential but noted the need for disciplined investment strategies amid challenging market conditions.
Cyrus Driver of Partners Group highlighted that the lack of exits is holding back new fundraising, while geopolitical risks, particularly in China, have led many investors to adopt a cautious approach. Warburg Pincus' Saurabh Agarwal stressed the importance of distributions to limited partners (DPI), noting that consistent returns depend on successful exits.
While most firms are pulling back due to these risks, KKR has raised $808 million for its Asia-Pacific private credit fund and remains active, viewing the current environment as an opportunity. Other regions like India and Japan are compensating for China's slowdown. As Pantheon Ventures’ Brian Lim noted, firms are seeing increased momentum in the secondary market.
Article by Mars W Mosqueda Jr for DealStreetAsia. Read more here or in the PDF below.
Comments