Investor Commitments

Tokyo-based Basic Capital Management is back in the market for its latest strategy after a nearly four-year hiatus since its last flagship.

The average PE exposure across all investor types surpassed 10% last year, up more than 4 percentage points compared with five years ago, according to PEI’s full-year 2023 Investor Report.

Investors that are still actively investing are spending more time drilling into fund managers.

Some of Flexstone’s clients are expected to raise their Asia-Pacific allocations from 10% to 15-20%, Eric Deram, managing partner at Flexstone Partners, told PEI.

The roughly $5.5bn investment manager has stressed the need for discipline after a challenging year for tech valuations and exit activity.

The pension made at least 52 new PE commitments in 2022, bringing the total number of funds and projects in its portfolio to 456, per its latest annual report.

The Hong Kong-based group, which refers to itself as a private investment office, is seeing greater flexibility in terms of the minimum commitment GPs are willing to accept.

LPs consider a vast number of metrics, including transparency, exposure and co-investment opportunities, before determining whether a fundraise was successful.

Despite challenges, signs point to a market that has begun realising its potential.

Japanese institutions have found themselves cutting down ticket sizes and declining fund opportunities as currency fluctuations compound private equity’s denominator effect.