Asia Pacific secondaries outlook for 2016

Secondaries Investor lays out its key five predictions for activity in Asia in 2016.

1. Australian superfunds will return as sellers

Australia’s superannuation funds were quite active in selling portfolios about two years ago, and they are likely to return as sellers next year, according to Michael Belsley, a partner at law firm Kirkland & Ellis in Chicago who works on Asia-Pacific secondaries.

“Given the recent weakness of the Australian dollar, you may see the superannuation funds returning to the secondary marketplace as sellers in 2016,” Belsley said. “Australia will continue to be a source of deal flow because of the maturity of the private equity market in Australia. Institutional investors there hold mature assets, and they may be interested in exploring liquidity opportunities rather than just waiting for the assets to generate cash flows.”

2. Falling energy prices will spur energy secondaries

Market participants speak of rising interest in energy-related deals, much of which will be fund restructurings for vehicles that made bad bets in the sector or were affected by drops in falling oil and gas prices. This will be particularly pronounced in Asia and emerging markets, said Takao Akaogi, managing partner at Ant Capital Partners in Tokyo.

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