Institutional investors have seen their portfolios diminish substantially in the past two years.  To offset the loss, they have continued allocations to alternative assets, especially private equity, in the search for superior returns.  With many of the local economies already recovering from the financial crisis, Asia is a natural choice as an investment destination.  Furthermore, a maturing Asian private equity industry now offers LPs plenty of choices.  A diversified group of investors discuss:

• Where Asia fits in a balanced portfolio
• What foreign LPs and their peers think of Asia
• The allocation and investment process

Is the buyout model still valid?

Simon Pillar, Managing Director, PACIFIC EQUITY PARTNERS

A few years ago LPs went gaga over pan-Asian buyout firms creating mega funds in the several billion-dollar range.  At the same time they shunned smaller single-country funds.  Yet recently some investors have changed their tune and are now looking closer at country funds, citing deeper local relationships and better access to deals.  Yet despite some high profile setbacks, the thesis for pan-Asian buyouts remains largely intact.  The debate continues as LPs argue their views.

• Is the pan-Asian buyout model flawed?
• Do country fund managers have more access?
• What do investors really prefer?

Peter Keehn, Global Head of Private Equity, ALLSTATE INVESTMENTS, LLC
Jie Gong, Vice President, MORGAN STANLEY ALTERNATIVE INVESTMENT PARTNERS
Bill Pearce, Director, Investment Funds Department, OVERSEAS PRIVATE INVESTMENT CORPORATION

The recessionary environment has hit the LP community as hard as the fund managers they invest with, and a lot of talk in the industry over the past year has focused on the LP-GP relationship, with areas like management fees, clawbacks and proper reporting all coming into question.  To what extent have these talks produced favourable results for institutional investors?  Should the voice of the Limited Partner have greater weight in the investments and partnerships they make?  Or will LPs have to go on settling for the same terms and conditions they have had from the beginning?  Offshore and on-the-ground LPs share their views on:

• How the LP-GP relationship is changing and where it should ultimately be
• The benefits of better communication within the LP community
• Strategies for finding liquidity when capital calls are made