Asia-Pacific

Japan’s private markets brace for greater levels of interest.

International GPs and LPs increasingly view Japan as one of the hottest growth markets for private equity as it gets lifted by macro tailwinds.

Shin Kong Life's portfolio sale comes just weeks after Cathay Life sold $1.2bn of fund stakes to HarbourVest, as impending regulatory changes prompt insurers to rethink their private markets exposure.

Although India remains dominated by growth equity, the market is seeing greater appetite for buyouts as GPs and institutional investors seek a more hands-on approach.

Subscription credit line use in Japan hasn’t developed at the same rate as in other Asia-Pacific markets, Fi Dinh, head of fund finance for APAC at MUFG Investor Services, tells PEI.

Japan was the only market in Asia-Pacific that saw an increase in deal value last year, according to Bain & Co's Asia-Pacific Private Equity Report 2024.

The co-chief executive's comments coincide with a raft of Japanese buyout funds returning to market to capitalise on rising investor demand.

Though investors seem increasingly drawn to the market's favourable demographic tailwinds, DPI, exit routes and GP selection remain key considerations for potential entrants.

China funds are trading at a 50% discount to NAV even after a decline in private markets valuations, managing director Kent Chen tells PEI.

Buyers need to understand the fundamentals of Chinese secondaries before evaluating discounts, according to Coller Capital’s Zhan Yang.