Deals, trends and opportunities from Asia

2 minute read + PDF 17.02.2022 Ben Smith, Jeremy Blackshaw

What are the investment trends and prospects for investors from Asia? We explore them in our Asia Report: Year in Review, looking at China, Japan, Korea and emerging market Indonesia in detail.

COVID-19 and its ongoing evolution have challenged and changed the way dealmakers and advisors have undertaken and resourced deals – and the market is thriving. Despite continuous global challenges, Australia is currently enjoying the strongest bull market since the tech boom of the early 2000s.

Investments have been dominated by local corporates, pension funds and international private equity firms – who have been particularly active in the Australian infrastructure sector. However, international investors, particularly those from Asia, have been conspicuously absent compared to previous years.

In 2022, this is likely to change.

Borders are reopening, and relationships and opportunities that have been dormant will be reactivated. Businesses and governments are keen to expand regional relationships. Opportunities for face-to-face relationship building meetings and site visits will provide the impetus for deals to restart.

In this report, we examine the investment trends and prospects for investors from Asia. Based on our team's deep experience across the region, we explore deal activity in China, Japan, Korea and Indonesia, and the range of opportunities there are for investors going forward.

Investment opportunities across industries

ESG will be a particular investment driver for Japanese and Korean investors, following the Japanese Government’s announcement of net zero greenhouse emissions by 2050 and Korea's 'green' focus in its national strategy.

We're seeing investment opportunities across a wide range of other industries.

Resources

In the resources sector, we're seeing interest in iron ore and gold from China, and hydrogen and battery minerals from Japan and Korea.

Infrastructure and real estate

Infrastructure is an important focus for Indonesian investors, with the introduction of the Indonesian Investment Authority. Real estate is also on the radar for both Japanese and Korean investors.

Services Tech icon

Services and technologies

Japanese corporations are pursuing opportunities in financial services, and Korean companies have shown interest in industrials, TMT and biotech/pharmaceuticals – where many already have leading-edge core technologies.

Education

There's an opportunity for Australia's education sector to help support vocational and tertiary training for Indonesia and to tap into Indonesia's extensive pool of potential students.

In a competitive landscape with numerous opportunities for growth, investors should start planning early to take advantage of identified prospects. Competition for strategic assets is fierce. The regulatory environment is complex, and can take time to navigate.

However, with the right planning and due diligence, it's an exciting time to be exploring new opportunities in the Australian market.