Australia leads the charge for the highest proportion of private wealth investors across the Asia-Pacific (APAC), accounting for 23 per cent of the region, data from Preqin has found.
According to Preqin’s latest Fundraising from Private Wealth report, Australia and Singapore have both been identified as regional private wealth “hotspots”, and as such, are pockets of wealth for fundraisers to target.
Breaking this down, Australia, as of January 2024, also made up some 25 per cent of single-family offices, and over 10 per cent of multi-family offices across APAC.
With wealth managers and family offices globally allocating some 22.6 per cent of assets under management (AUM) to alternatives, Preqin highlighted that Australia is ripe with opportunity, with local private wealth investors representing an expanding pool of potential capital.
“As in the US and Europe, the Australian Securities Exchange has seen a decline in IPOs and shallowing of public markets, creating a greater interest among private wealth investors for alternatives,” the report said.
This, Preqin explained, has led to some preliminary regulations within local private markets.
“Managers should be aware that Australia’s corporate regulator is planning to set up a division to evaluate private markets in the coming 12 months, particularly relating to concerns over valuations.”
Namely, speaking at an event in Sydney last month, Australian Securities and Investments Commission (ASIC) chair Joe Longo confirmed the regulator has ramped up scrutiny of the sector and has set up a dedicated task force towards this.
“In terms of changes that could lead to additional regulation, the Alternative Investment Fund Manager Directive in Europe and the SEC’s quarterly reporting requirements in the US are reference points managers may need to consider,” the report added.
Commenting on the data, Rachel Dabora, analyst of research insights at Preqin, said that private wealth investors acting as a potential new fundraising frontier for alternative fund managers continues to be a popular topic of discussion.
“Understanding how, who, and where to engage with this capital pool, that’s estimated to be worth around $100 trillion, is still being explored. This is a phenomenon that has begun with European wealth managers and family offices, APAC’s burgeoning populace of high-net-worth individuals, and through established advisor networks across North America.
“Now is the time for managers to build these relationships in the anticipation of the imminent intergenerational wealth transfer, new technologies that will reduce transaction costs, and a growing interest in alternatives,” Dabora said.
