Top of main content

CIO Academy: Navigating private equity opportunities in Asia Pacific: the case for a selective approach

Thought Leadership
This insight is about
Technology
Asia Pacific
CIO Academy
Healthcare
Private equity

CIO Academy: Navigating private equity opportunities in Asia Pacific: the case for a selective approach

by Yifei Qian, Principal, Private Markets; Dave Lowery, Head of Alternatives Research, HSBC Asset Management; Simon Li, Private Markets Investment Specialist, HSBC Asset Management and Thibaut Charron, Private Markets Investment Specialist, HSBC Asset Management
Oct 18, 2024

  • Growth outlook: Asia Pacific economies are continuing to grow at a high rate even in face of cyclical slowdowns. This growth is contributing to significant increases in wealth, as more individuals enter the middle class and benefit from rising incomes. Against this backdrop, we believe that the long-term prospects of the region should continue to stand out, with any cyclical hiccups presenting attractive entry points
  • Market context: Asia Pacific private equity market has significant room to grow, in our view. As of the end of 2023, Asia Pacific-focused private equity funds accounted for just 12 per cent of global private equity assets under management (AUM), compared to 64 per cent focused on North America and 21 per cent focused on Europe
  • Market outlook: We believe the Asia Pacific market will mature, and over time begin to close the gap with the US and Europe. Given the diverse nature of many economies within the region, there are a range of potential opportunities, with India, Japan and Australia presenting particularly interesting private equity opportunities
  • Focus on private equity: The market in Asia Pacific is both large in scale and varied in its composition. There are many growth areas for managers to target, and sectors with the potential to deliver strong growth, such as healthcare, technology and technology services. We believe that an on-the-ground presence is vital both to identifying niche local growth areas and delivering value creation strategies

This is a marketing communication from HSBC Private Bank, which is the main private bank business within the HSBC Group. Private banking services are delivered by various HSBC companies around the world, depending on local laws and regulations. The services described in this document may be provided by different HSBC entities, and members of the HSBC Group may also trade in the products mentioned here.

 

This document is not independent investment research under the European Markets in Financial Instruments Directive (‘MiFID’) or other relevant regulations and is not subject to restrictions on dealing ahead of its distribution. This means HSBC and its staff may have an interest in the products or services mentioned before this document is shared with you.

 

The information in this document is for general information only and is intended for HSBC Private Bank clients. It does not constitute, and should not be construed as, legal, tax or investment advice, or a solicitation, offer, or recommendation to buy or sell any financial products or services.

Some HSBC offices may act only as representatives of HSBC Private Bank and are not permitted to sell products, provide services, or offer advice to customers. Not all products or services are available in all jurisdictions. For a complete list of HSBC Private Bank entities and their regulatory status, please visit our HSBC Private Bank website.

 

Before proceeding, please refer to the full long macro disclaimer and the Terms and Conditions available at HSBC Private Bank website which provide further important information about the use of this material.
Back to top 

Related Insights

Listening to what you have to say about services matters to us. It's easy to share your ideas, stay informed and join the conversation.