Institutional angle: Demystifying the Asia opportunity

 Do returns alone justify an allocation to Asia?

 How helpful are the last 10 years in assessing which GPs will deliver in the next 10?
 Is now the time for a contrarian investment thesis in Asia?
 How prevalent are ESG and DEI in allocation decisions?

Khaz - $10b over various PM. PE program is across the globe, but largely MY, SEA, then China and
India. Track record in Asia. More than 50% in Asia. More than 200 people, but that’s also because
they do directs. Looking to rebal.

Japan Post Bank – portfolio has to be more stable because they are the people’s bank. Need stable
returns and a lot of diversification. Invest a lot into US because they are more developed. But will
also want to invest strategically into Asia. 30 team globally, 3 in Asia.

Asia Alternatives – 100% PE and in Asia, pure FoF only. Hub in Hong Kong. 20 investment
professionals.

The narrative in Asia is changing. How are you evaluating GPs now?

Khaz

- Track record counts for a lot. That’s the only tangible data point.
- But need to know how those numbers came about. If they all come from consumer, then will
it still work? But if they pivot, then how much experiences do they have?

JPB

- Track record counts, but cant be the only one. And also because there’s turnover
- Context is important for track record. But people change, investment themes can change

AA

- Need to be aware whether these track records can be brought to other cycles
- Asia is changing very fast because its been driven by developing countries

What are the common questions or perceptions about investing into Asia?

AA

- Not so much internally, but more for externally with LPs

- Covid has stopped international investors from coming to Asia to do on the ground DD
- China has been top of mind for international investors
- Hopeful for increase LP traffic into the region
- If there are additional risks, are there additional returns to compensate?
Is your job harder now to evaluate GPs?

JPB

- Need to evaluate how their GPs are reacting. So they track how each GP is performing, and
then affects subsequently for fund raising
- But not just for Asia, also for other regions

Khaz

- But only 24 months into interest rates

- Still too early to tell which GP is really coming out top
- Deal volumes are still low, less than half
- A lot of work being done, but not a lot of deals getting done

How are you looking at the opportunity in India, and how are you evaluating GPs

Khaz

- India has been the most active team this year

- Depth and breadth of market is growing at a rapid pace
- All about finding the right deal at right price
- But there are historically not a lot of deals in India
- Not a lot of GPs who have experience
- They looked at a company and put term sheet, but afterwards realise books were cooked
and other GPs had also done DD. So they pulled deal

AA

- DPI and IRR for India haven’t been very good until recently

JPB

- Mid cap GPs have been more developed and at a rapid pace
- Growing faster than SEA

How have funds changed from fund investments to co invest and then to directs

Khaz

- They are doing co investments as though they are directs. They do less than 10% of deals
they see. But dependent on who the fund is, Khaz as sovereigns have a higher bar

AA

- They rely on other GPs, but more importantly for the GPs to help with post investments

How will portfolio look like in the next 24 months

AA

- Can tell what they wish it looks like but don’t know
 - Hoping to see public positions in China to recover

Khaz

- Looking to exit portfolio companies once liquidity event at IPO

- Because they have public portfolios as well that takes a beating so don’t want to hold more
publics

JPB

- Focus more on diversification

- Because too many different macro events now
- So more diversification and to be stable