Investors are increasingly focusing on the secondary private equity (PE) market due to global economic volatility and liquidity challenges. A significant development is the US$30 billion fund launched by Paris-based Ardian, which has seen substantial contributions from Asian investors, who accounted for 24% of the total. This marks a significant increase from Ardian's previous fundraising efforts in 2020, which raised US$19 billion.

Secondary funds, as defined by Morgan Stanley, acquire existing interests or assets from primary PE fund investors. The recent market fluctuations have led some investors to sell their private equity holdings, as their allocations have surpassed predetermined limits due to declining values in other public market assets. Additionally, some publicly listed companies are opting to sell their fund holdings to realize gains and alleviate pressure on their core operations, according to Jason Yao, Ardian's head of Greater China.

The demand from buyers is also on the rise. Yao noted that private banks and family offices are increasingly represented in Ardian's Asian limited partner base. Limited partners are investors who do not have management control over the funds. Ardian manages or advises on US$176 billion in assets, including investments in companies like Leqee, a Chinese e-commerce service provider, and Kangji Medical, a surgical instrument manufacturer.

Yao highlighted the growing number of family offices in Asia, many of which are sophisticated and staffed by professionals with experience in institutional investing. These investors recognize the potential value in secondary market opportunities. While Ardian has not disclosed the specific names of the Asian investors in its latest fund, Yao mentioned that insurance companies have shown particular enthusiasm. The latest fund attracted at least 40 investors from the Asia-Pacific region, a significant increase compared to Ardian's previous fundraising efforts.

For many Asian investors new to private equity, the secondary market presents an appealing entry point due to its quicker liquidity turnover. This trend reflects a broader shift in investment strategies as market conditions evolve, prompting investors to seek more flexible and responsive opportunities in the private equity landscape.