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Data quality tops the list of challenges in APAC private asset investing
08 September 2021
Among large investors in Asia, the appeal of private
market assets is rebounding - according to a recent study
sponsored by IHS Markit, over 65% of respondents expect their
private market asset allocation to increase or remain the same in
2021, compared to an over 70% decrease in allocation to this
category in 2020.
In the 2nd quarter of 2021, IHS Markit teamed up with Risk.net
to learn about data challenges facing private market investors in
APAC as allocations into private assets grow. We surveyed more than
150 institutional investors in the region about their investment
sentiments, and we also asked how data collection and compilation
challenges impact investment decisions.
Among the top challenges in supporting private asset allocation
decisions were issues surrounding data:
79% of respondents told us they expect an increase in the
volume and depth of data to be utilized in investment
decision-making in 2021.
Only 6% of respondents indicated they are highly effective at
data collection. On a rating scale of 1 to 5, where 1 was the most
effective, 60% of surveyed organizations with an AUM of more than
USD 100 billion gave themselves a rating of 3 or above on this
topic.
The challenge of securing data was keenly felt across
different private assets and throughout the investment life
cycle, a condition that could be exacerbated as
institutions increase their allocations. Industry-wide, there is
strong demand for relevant and reliable private market data
solutions. We see most respondents prepared to invest in enhancing
their private market asset data collection and management
process.
In the important and fast-growing world of private market
investing in Asia, the availability of quality data and collection
methods has fallen short. More investors are recognizing the need
for better data for use in managing their investment
lifecycle.
Download the full
report to learn more about how sophisticated
APAC-based investors are thinking about data collection, analysis,
and reporting.
Our solutions for private equity have supported over 700 firms
in their journey of growth and their expansion into new asset
classes. We understand that as markets change and economies
fluctuate, firms and people need a partner they can trust to help
optimize output.
IHS Markit provides industry-leading data, software and technology platforms and managed services to tackle some of the most difficult challenges in financial markets. We help our customers better understand complicated markets, reduce risk, operate more efficiently and comply with financial regulation.
