Hedge funds focused on Asia are predicting a surge of new money from North America and Europe as investors move away from overvalued U.S. assets to tap the early pandemic recovery in China and other parts of the region.
After digging into the U.S. venture capital results from last year with an extra eye on fintech and unicorn investing, one trend was clear: venture capital is getting later and larger (as expected).
U.S. private equity firm KKR sees a treasure-trove of investment opportunities in a "transformed" Asia-Pacific real estate sector, as consumers increase e-commerce shopping and work from home amid the pandemic.
Asian and North American private equity funds suffered heavier losses during the first quarter of this year than their European peers but bounced back in the second quarter whilst Europe continued to struggle.
Asian insurers and pension funds are forecast to grow their exposure to real assets in 2021, with a particular focus on healthcare, social housing, and sustainable transport.
The two continents enjoyed more venture capital investment into their local startups than in some time, underscoring that strong VC results the U.S. saw in the third quarter were not a fluke, but part of a broader trend.
Saving cash has become the new mantra for startups in Asia as capital quickly dries up in the region. Funds raised by Asia-focused venture capital firms fell to a seven-year low of $2.2 billion in the first quarter.
Trade tensions, Chinese debt reduction and other factors have led to a 90 percent drop in Chinese investment into the U.S. over the last couple of years. Despite this decline, venture capital in the U.S. continues to be popular, with U.S.-based VC firms raising over $28 billion in the first half of 2019.
Asia markets, including China and India, have seen growing interest from global investors and venture capital firms in recent years. Despite the volatility of the macroeconomic and geopolitical environment, the number of VC deals in the continent still booked robust growth in the third quarter.
Asia could overtake North America as the global center for venture capital funding as early as next year, according to a study backed Singapore state investment company Temasek.