Programme

Stretching from New Zealand to India, Asia is an idiosyncratic collection of languages, cultures, economies and commercial environments. Within private equity, pan-regional funds are the most straightforward means of getting a piece of most of them. But some LPs want more nuanced exposure, based on their risk-return expectations and their assessments of which geographies – or indeed fund sizes and strategies – are most likely to shine. In this session, experts drawn from across the region debate the merits of different approaches.

• What are the biggest challenges facing Asia in the current economic climate?
• Are developed market buyouts preferable to emerging markets growth equity?
• Where can the best returns be found in venture capital?
• Which geographies and sectors are most resilient in a downturn?

In 2018, the Japanese government outlined plans to create 20 unicorns within five years. Since then, Mercari has gone public, having earlier crossed the $1 billion threshold, while three more start-ups – Preferred Networks, Liquid Group, and SmartNews – have achieved unicorn status. A domestic venture capital ecosystem that lacked funding now seems poised to go into overdrive, with more risk capital available to entrepreneurs increasingly willing to take risks. Our panellists consider the next steps in creating an innovation nation. 

• How big can a Japanese start-up become without going global?
• What can local GPs do to support cross-border expansion?
• Are companies pursuing IPOs too early in their lifecycles?
• Which technologies will define the next phase of Japanese VC?

Credit retains its appeal among Japanese institutional investors – and many of their global peers as well – for its consistent, yield-based returns that come early in the cycle and in-built downside protection. The menu of options is extensive, featuring direct lending, stress and distress, receivables financing, mezzanine and an assortment of structured solutions. However, it is also important to consider the local dynamics of the markets in which capital will be deployed. Our panellists offer insights into a fast-growing industry vertical.  

• How does the opportunity set change based on the point in the cycle?
• Are large global credit players destined to dominate the market?
• To what extent has the bull market led to a weakening on terms?
• What have the returns been like – globally and for Asia specifically?

An LP’s approach to private equity is often a function of maturity and size. Experience and existing exposure to the asset class shape future preferences. Risk appetite will also be impacted by internal resources, specifically the ability to underwrite and maintain oversight of a portfolio. And then then quantum of capital that can be committed dictates the mode of entry – co-mingled products, separately managed accounts or direct fund investments. A group of experienced LPs discuss how their programs have evolved.

• How should LPs think about geographical exposure and home market bias?
• What internal resources are required to be an effective co-investor?
• How do you assess technology risk across a portfolio?
• To what extent is ESG playing a larger role in asset allocation?