NEW YORK, Feb. 1, 2018 /PRNewswire/ — Ultimus Asia Limited, a private equity investment fund managed by Vanguard Fund Management announces its intention to target Asian markets, joining many others to form the next wave of investments into Asia.
Global venture capital investment jumped 49% in 2017 to a record-high $164.4 billion, with the majority of growth coming from Asia, rather than North America as in past years. Global and regional private equity firms raised a total of $48.2 billion in Asia-focused funds in 2017, up from $43 billion in 2016, according to data from Preqin.
The surge came as investors worldwide continue to allocate capital to catch growing market and economic momentum in countries including China and India, pushing up the average fund size. With deal activity and funding hitting all-time highs in Asia, some investors are raising new funds specifically for the region.
Ultimus Asia Limited, an offshore private equity fund managed by Vanguard Fund Management completed its first tranche of investments in Dec 2017 and plans to raise a total of $1 billion for investments in Asia.
Ultimus believes Asia has entered the era of middle-income groups. Driven mainly by the upward prosperity curve of China over the past two decades, and Chinese FDIs into other Asian regions, the general middle income groups of Asia are now both asset and cash rich, and more than willing to spend on wants rather than needs.
With a target portfolio spread across 4 main industries – trade, agriculture, tourism and property, Ultimus is set to effectively capture the appetite of middle-income groups, and through this, harness the next round of wealth in Asia, which would be largely powered by the masses.
Other funds set to launch into Asia this year include Baring Private Equity Asia, Carlyle Group, Blackstone Group and Vertex Ventures, each aiming to raise amounts from $200 million to $6 billion.
Asia-Pacific is the fastest growing economic region in the world. Backed by the rapid growth of emerging economies within the region such as China and India, Asia-Pacific is expected to remain as the world’s main economic growth centre, with its growth rate being nearly one and a half times more than that of any other region of the world.
It is little wonder that global funds are pouring into the Asia-Pacific region and it does not look like it will stop any time soon.