India could be in a position to become the region’s sparkling jewel as Asia’s largest private equity market as dealmakers watch US-Sino tensions continue to grow.. This led to a nine-year low in market share last year, with China accounting for only 31% of deal value. By contrast India’s market share rose to 23%. It is a little early to say that India will achieve Rupee-ted success. Still, with a combined $61.6 billion in PE/VC investment, the sub-continent showed it was resilient to wider global economic headwinds. And with a growing number of buyout players ready to deploy capital, there are signs India’s PE marketplace could heat up nicely; particularly in tech, healthcare and clean energy.
Private market capital is beginning to make a healthy impact on the planet as it targets investments related to UN Sustainable Development Goals. According to a new report published by impact investment consultant, Phenix Capital, there has been a 55% increase in the number of funds focused on biodiversity, since 2017. In total, 523 fund managers have raised €207 billion, with real asset funds proving the most popular (by number): specifically Timberland & Forestry funds. The biggest investment, however, has been in venture and growth funds, attracting €47 billion. Zero Hunger (UN SDG2) is a key priority among investors, as well as Clean Water & Sanitation. Private equity is well placed to bloom, with 62% of biodiversity funds investing in the asset class. This is good news for private markets. Time to push biodiversity investment into hyperdrive!
Brookfield Asset Management will be high fiving and singing songs of praise following confirmation that Maryland State Retirement and Pension System (SRPS) has approved a $300m (€278.2m) commitment to its fifth global infrastructure fund; Brookfield Infrastructure Fund V (BIF V).With a focus on midstream and renewable energy, data/utilities and transportation, Maryland SRPS will be hoping that the investment provides an energy boost to its $3.1 billion infrastructure asset portfolio. The new capital commitment takes Brookfield one step closer as it targets $25 billion for the fund.
The era of cheap money has helped private debt balloon to $1.5 trillion but the temple of private debt could face a number of sacrifices in the coming period.Oaktree Capital Management co-founder Howard Marks has voiced concerns that high interest rates and slowing economic growth could test portfolios that were built in previous years when it seemed every private debt lender was worshipping in the same temple. But a more challenging macro environment is eating in to profit margins, placing significantly more stress on some portfolios. Marks, however, is bullish on the outlook and sees this as a good climate to be exploring new opportunities, with higher interest rates offering attractive returns for those wishing to venture further into direct lending space as US banks continue to retrench. For now, fund managers might well be praying that they avoid corporate defaults in their existing fund vintages.
Mast be appealing; European infrastructure that is. As the Financial Times reports, UniSuper, the Australian pension fund, has acquired an indirect 5% stake – worth $677 million – in Vantage Towers, the European telecom masts business owned by Vodafone.This is the first signal of intent by UniSuper as it looks to increase its global infrastructure investment portfolio. Vodafone sold a chunk of Vantage Towers to a consortium of investors last November including KKR; the PE giant through whom UniSuper has made the investment. Mobile telecom towers are vital to the roll-out of 5G (and beyond). No doubt other infrastructure investors will be looking to take ad-Vantage of future opportunities in Europe.