Fundraising and deal-making in the Asia-Pacific (APAC) region continue to decline in 2024 as investors remain hesitant. However, a recent webinar hosted by Preqin highlighted three favorable trends.
According to a recap of the webinar titled "Alternatives in APAC," the event was hosted by Angela Lai, Vice President and Head of APAC and Valuations at Preqin, Henry Lam, Assistant Vice President of Research Insights, and Gerard Minjoot, an analyst. The webinar included panelists from Ares Management, Nomura Asset Management, and CapitaLand Investment.
The recap noted that the webinar covered how a weak yen, lower valuations, and an accommodative interest rate environment have maintained Japan’s position as an investor favorite. Japan has led as an active private equity market in APAC since last year, with impressive venture capital deal flow. In real estate, Japan’s office transactions totaled more than $1.6 billion in Tokyo, which bolstered office deal value in the first half of 2024.
Henry Lam, CFA, CAIA, Preqin
| Henry Lam LinkedIn account
The webinar also explored the effect high interest rates have had on private debt. According to the recap, APAC accounts for just 7% of the global private debt market due to the dominance of traditional banks. Peter Graf, partner and head of Sponsor Direct Lending Asia at Ares Management, stated that Asia overall is behind the United States and Europe but views opportunities in APAC as "tremendous."
Preqin’s Lam noted that real estate transactions in APAC rose to $16.3 billion in 2023 but were far below 2022’s $29.1 billion. Even so, positive signs emerged in the second half of 2023 when deal values increased from $2.5 billion in the second quarter to $4.7 billion in the fourth quarter.