Rising valuations a concern for PE as financials of Asian companies are not robust

Rising valuations a concern for PE as financials of Asian companies are not robust

INSEAD's Claudia Zeisberger (left) and Michael Prahl (right)

At a time when the Asian private investment space seems to be crowding with the advent of non-traditional investors in the scene like wealth funds and others,  two Insead professors and authors of a book on private equity have said that investors will largely continue to rely on local or specialized PE firms for smaller and more complex deals in the space, a commonly seen category in the Asian context.

“…most of these investors (wealth funds and others) are way too large in terms of AUM, to deploy their PE allocation only through direct investments. So, they still remain Limited Partners (LPs) in funds; maybe making allocation decisions more with an eye towards co-investment deal flow.

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