In what is another example of Asian HNWIs’ fervour for local assets and real estate, Julius Baer recently raised about US$170 million from clients in the region for a private equity fund invested in real estate across the Asia Pacific, according to sources.
When contacted, a spokesperson for the bank declined to comment on the matter and would not provide more details on the fund.
According to the source, the fund invests in all forms of real estate in both developed markets (primarily Australia and Japan) and emerging markets (mainly China and India). The source states that approximately 85% of the global allocation (of US$200 million) was filled by HNW clients in Asia.
Amid rising equity valuations and climbing interest rates, private equity continues to be all the rage, with investors seeking longer-term investment opportunities that offer illiquidity premiums. Julius Baer’s successful fundraising for its private equity fund highlights strong local growth in this space. According to a recent Bain report, PE deal values in the Asia Pacific reached US$92 billion last year, well below 2015’s record-high of US$124 billion, but still the second highest amount over a six-year period.