Clare Burrows
The government has increased the total amount of debt investment allowed from foreign investors to $51bn from just $1bn, a move likely to provide foreign GPs with attractive opportunities in India’s credit market.
The special administrative region follows Singapore in signing a DTA with Guernsey, signaling its desire to become a more attractive fund domicile for private equity firms.
Professor of finance at London Business School, Francesca Cornelli, believes more academic research in Asia is required to educate GPs on the legal and operational risks of minority stake investments.
The initiative introduced by Chinese regulators to allow private equity players to buy and sell companies more easily will likely offer lower quality assets, predict industry sources.
Don't rely on macro growth to produce returns, according to speakers at PEI's Asia Forum, who cited entry valuations as a far more important factor in performance.
Hong Kong has said private equity funds will soon benefit from tax exemptions for offshore funds, which may draw firms away from traditional tax-haven domiciles like the Cayman Islands.
Singapore has inked a double tax agreement with the European fund domicile in an attempt to pull in more Asian private equity funds.
Fundraising by pan-emerging markets and Asia regional funds has overtaken that of country-focused India and China vehicles, according to data from EMPEA.
As GPs and LPs refocus time and resources on Southeast Asia, finding management talent is more of a concern than high valuations, according to a Southeast Asia panel at the 2013 HKVCA Forum in Hong Kong.
The ministry of finance has said the General Anti-Avoidance Rule that will impact private equity investors in the country will not be implemented until 2015.
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