In a recent article from Mourant parnters Danielle Roman and Simon Lawrenson they explore recent trends, evolving structures, preferred financing instruments, and the impact of economic conditions on LP financing in Asia.Danielle is head of the firm's Asia Banking and Finance team, and Simon is the global co-practice leader for the firm’s Corporate and Finance team.
Financial challenges from volatile equity markets, a real estate crisis in China and high US$ interest rates have prompted transformations in the landscape of limited partner (LP) financing in Asia. High net worth (HNW) individuals are increasingly exploring ways to leverage existing assets, primarily driven by the need for liquidity, higher margins and a desire to proactively manage and diversify their portfolios amid lacklustre performances in the public markets. Fund managers, meanwhile, increasingly look for financing options to exploit opportunities in the secondaries market or fund their own contributions into continuation funds.
