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.
The U.S.-China trade war could lead to a technological split between Asia and America that could benefit investors, James Coulter, the co-chief executive of private equity firm TPG Capital, said.
Nearly two-thirds of private equity and venture capital executives in Asia expect to receive salary increases in the next 12 months despite potential "rougher seas" in the industry because of the slowing global economy.
U.S. investment firm KKR has named the CEO of its Japanese unit, Hirofumi Hirano, as co-head of private equity operations in Asia as part of efforts to add to the company's portfolio in the region.
Chinese investors are increasingly turning away from U.S. tech startups and diverting money towards companies in Southeast Asia and India in the face of bilateral tensions, according to an advisor to 500 Startups.