Grant Kelley, chief executive for Colony Capital in Asia, said fundraising in the Asia Pacific region is set to continue its growth of the last couple of years, despite hitting unprecedented levels.
Speaking at a conference in Singapore, he said that private equity deals were getting bigger and more frequent in the region and that investment activity in this region will see more growth in the coming years.
Capital raised for private equity in the Asia Pacific region has grown rapidly over the last few years. In 2006 and 2007, about $85 billion was raised for the region, which is more than twice the amount raised in the four previous years, he said.
While the region contributes about 25 percent of world GDP, it accounts for only 10 percent of global private equity volume, he added. As such, there is still tremendous scope for private equity investments in the region.
Kelley said that while China, Japan and Australia & New Zealand were traditionally the biggest regional markets and remain key markets today, India is now the biggest market in terms of private equity investments in the region. Private equity investments in India more than doubled in 2007 to about $17 billion, surpassing Japan, Australia and China.
He added that while he expected the Indian market to retain this degree of velocity, a possible slowdown in US consumption could have a negative effect on Indian companies.