Aberdeen Property Investors Indirect Investment Management, the multi-manager business of Stockholm-based Aberdeen Property Investors, is in a bullish mood ahead of the launch of its third fund of funds vehicle.
The platform, led by managing director Jon Lekander, is aiming to raise $600 million for the follow-on vehicle to AIPP Asia Select fund, even though that 2009 effort only closed on half the $400 million it originally intended.
But with fundraising showing signs of coming back to life – and with Asia firmly in the sights of many investors – Lekander believes matching the $600 million raised for the platform’s inaugural effort in September 2007 is realistic.
“There are now more capital sources to approach and fundamentally investors are favouring Asia than markets in the West,” he said.
Adrian Baker, director of rival Richard Ellis’ multi-manager division in Singapore said the preference for Asia funds of funds was especially evident among European investors. “They want exposure to growth economies and Asia’s are the only ones left. They previously had the choice of Central and Eastern Europe but this is less of an option today.”
Aberdeen’s fund will run for 10 years with options to extend, target a return of between 13 percent and 17 percent, be “moderately weighted” towards emerging markets and take a conservative position on investing in funds which deploy large amounts of leverage. The firm’s previous fund is close to being fully invested with room for two to three more commitments, Lekander said.