April 12, 2006

Hedge funds posing a threat to buyout firms in Asia

Increased activity by hedge funds in Asia is posing a threat to buyout firms operating in that continent. Assets in Asia managed by hedge funds grew 38 per cent to US$101 billion (US$1 = RM3.67) last year, according to Eurekahedge, a Singapore-based research company. The region also attracted US$17.2 billion of buyout funds, almost three times the 2004 level, the Centre for Asia Private Equity Research said. Chris Gradel, a managing partner at Pacific Alliance, which manages about US$700 million of Asian buyout investments, however, feels that while some transactions will see hedge funds competing with buyout firms, in other transactions hedge fund activity may be complimentary to private equity firms. In any case, Gradel feels, hedge fund activity will increase in Asia. Business Times Online quoting Gradel reports:

Whether private equity funds like it or not, hedge funds will be more active, particularly in Asia.

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April 12, 2006 in Emerging Markets | Permalink




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