Private Equity Firms Plan Cuts in China to Escape Property Woes
- Survey shows PE firms will slash China property investments
- Firms are preparing to ramp up Asia investments outside China
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Private equity investors are cooling on China, pulling back from real estate amid mounting troubles at some of the nation’s biggest developers and with many also planning to cut bets on start-ups.
Among international investors a third will reduce their exposure to Chinese real estate funds over the next three years with none planning an increase, according to a survey by alternative asset manager Coller Capital. When including buyouts, venture, infrastructure, and private credit, there was an even split between increasing or cutting investments in China, Coller said after surveying more than 100 investors.