Private Equity Faces Deep Reset; Managers Streamline Operations, Target Asian Growth

Serena Tan, CEO of Gaia Investment Partners, noted that the post-Covid low-interest-rate environment fueled a boom, but the current lackluster market is forcing a re-evaluation. She suggested that some private equity players may have already raised their last fund without realizing it, as investors become more discerning and demand top-quartile performance.

To adapt, fund managers are focusing on streamlining operations, strengthening governance, and hiring talent to optimize revenue and costs. Meanwhile, Scott Hahn, CEO of Hahn & Co, sees opportunities in South Korea and Japan due to high domestic liquidity, allowing for multi-billion dollar transactions with attractive financing terms and less competition compared to the U.S. market.

Tan also anticipates a boom in sovereign wealth fund investments across Southeast Asia.