Private Equity Spotlight SI Decade: is Asia-Pacific the most promising secondaries market?
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Sep 23, 2024 In this discussion, Michelle Cheh from Kirkland & Ellis, Brooke Zhou of LGT Capital Partners, and Darren Massara from TPG NewQuest delve into the unique dynamics of the Asia-Pacific secondaries market. They highlight the region's innovative transactions despite its small global market share, discuss evolving valuation strategies, and explore the impact of local conditions on deal-making. The conversation also touches on investment opportunities in India, the complexities of fund transitions, and how regulatory differences shape Asia's secondary landscape.
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Inventory, Not Country, Drives LP Flow
- Brooke explained LP secondaries volume depends on fund size, LP base and market maturation rather than geography.
- She said larger pan‑regional funds and experienced LPs produce more sellable inventory.
New Seller Profiles Use Secondaries
- Michelle noted new seller types (insurers, family offices) now use LP secondaries to meet regulatory or portfolio needs.
- She credited intermediaries and specialists with educating smaller LPs to use secondaries as a tool.
Partner Before Building Internal Teams
- Darren advised large institutional LPs will likely partner with secondary specialists rather than build from scratch.
- Brooke agreed institutions usually start with partnerships before considering in-house teams.