Rich individuals betting on bargains and cash flow are a new force in the US$210 billion market, fund managers say
Wealthy investors across Asia are increasingly buying into the US$210 billion secondary private-equity market, betting on bargains and cash flow as a strategic response to geopolitical and economic uncertainties.
Attracted by diversification and liquidity, Asian investors – including from Hong Kong and Singapore – accounted for more than half of the subscriptions to a US$1.2 billion secondary fund co-managed by Franklin Templeton and Lexington Partners, Christian Bucaro, Franklin Templeton’s head of wealth for Asia, said in an interview. On Monday, the managers said that the fund’s assets under management had climbed 37 per cent to the latest mark since the launch earlier this year.
The fund’s “evergreen” structure allowed investors to subscribe monthly and redeem quarterly, according to its website. This is in contrast to some closed-end funds that lock up investor capital for years until the underlying assets are sold.
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