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Asia-Pacific LPs will become active players

LPs have a more positive view of private equity in the Asia-Pacific region and plan to be active buyers and sellers in the secondaries market within the next two years, according to a new report by Coller Capital.

Asia-Pacific limited partners are likely to be the most active buyers and sellers in the secondaries market in the next two years, according to Coller Capital’s new global private equity barometer released on Monday.

On a global basis, Coller Capital found that 51 percent of LPs plans to buy private equity assets in the secondaries market in the next two years, while 38 percent of LPs expect to sell assets.

However, the bulk of activity may shift to Asia and the Pacific region, where 59 percent of LPs say they expect to buy assets, and 50 percent say they expect to sell asset.

Broadly speaking, LPs have a more positive view of private equity in the Asia-Pacific region than they did three years ago. They see an improved risk/reward profile in India, Taiwan, Japan, Korea and Australia.

“Creative destruction is the name of the game in private equity today,” said Jeremy Coller, chief investment officer of Coller Capital in a press release.

“Investors are accelerating the natural pace of change in private equity through hyperactive buying and selling in the secondaries market, a demonstrable willingness to support newly-formed franchises, and decisions to exit or stay invested in restructured funds.”

The report, a biannual snapshot of trends in private equity, captures the views of 113 private equity investors from around the world.