KKR Releases “Asia: Leaning In” by Henry H. McVey
October 11 2017 - 6:45AM
Business Wire
New Macro Report Says Now is the Time to ‘Lean
In’ to Investment Opportunities in the Region
KKR today announced the release of Asia: Leaning In, a new macro
Insights piece by Henry H. McVey, KKR’s Head of Global Macro and
Asset Allocation.
“Beyond compelling macroeconomic conditions that we now see
creating a favorable environment for capital deployment, Asia has
also emerged as an elegant play on some of our highest conviction
investment themes, including corporate carve-outs, experiences over
things, and the illiquidity premium,” Henry McVey said.
In his latest report, Henry McVey and his team outline the
following investment conclusions from his most recent trip for the
macro and asset allocation community:
1. Asia’s surging middle class, coupled
with even stronger productivity trends, signal robust structural
growth for the foreseeable future. Already, we estimate that China
and its EM trading partners are on track to account for 60% or more
of total global GDP growth. 2. From a cyclical growth
perspective, China’s nominal GDP growth appears to have already
bottomed, which has important and positive implications for the way
we view the Asian emerging markets story during the next three to
seven years. 3. We see Asia as a direct and compelling play
on three of our global macro themes: de-conglomeratization,
experiences over things, and the illiquidity premium within
performing private credit. 4. The biggest changes in Asia we
see are not only the continued migration up the value-added ‘food
chain’ across a variety of domestic industries but also the impact
that technology is having on delivery of these higher value-added
goods and services. 5. Beyond strong growth in domestic
demand stories, we also see more opportunities for allocators of
capital to help Asian companies – both in developed and developing
markets – expand abroad.
“To be sure, Asia is not without its macro and geopolitical
concerns. Nonetheless, if we are right about the aforementioned
trends, then now is the time for multi-asset class investors to be
‘leaning in,’” said McVey.
Links to access this note as well as an archive of Henry McVey's
previous publications follow:
- To read the latest Insights: click
here.
- To download a PDF version: click
here.
- To download the KKR Insights app for
iOS click here, and for Android click here.
- For an archive of previous publications
please visit www.KKRinsights.com.
About Henry McVey
Henry H. McVey joined KKR in 2011 and is Head of the Global
Macro and Asset Allocation team. Mr. McVey also serves as Chief
Investment Officer for the Firm’s Balance Sheet and is Head of the
Private Market and Balance Sheet Risk team. Prior to joining KKR,
Mr. McVey was a managing director, lead portfolio manager and head
of global macro and asset allocation at Morgan Stanley Investment
Management (MSIM). Prior to that, he was a portfolio manager at
Fortress Investment Group and chief U.S. investment strategist for
Morgan Stanley. While at Morgan Stanley, Mr. McVey was also a
member of the asset allocation committee, and the top ranked asset
management and brokerage analyst by Institutional Investor for four
consecutive years before becoming the firm's strategist. He earned
his B.A. from the University of Virginia and an M.B.A. from the
Wharton School of the University of Pennsylvania. Mr. McVey serves
as co-chair of the TEAK Fellowship board of trustees and is a
member of the Pritzker Foundation Investment Committee. He is also
a member of the national advisory board for the Jefferson
Scholarship at the University of Virginia and a member of the
Council on Foreign Relations Corporate Leader Program.
About KKR
KKR is a leading global investment firm that manages multiple
alternative asset classes, including private equity, energy,
infrastructure, real estate, credit and, through its strategic
partners, hedge funds. KKR aims to generate attractive investment
returns by following a patient and disciplined investment approach,
employing world-class people, and driving growth and value creation
with KKR portfolio companies. KKR invests its own capital alongside
its partners' capital and provides financing solutions and
investment opportunities through its capital markets business.
References to KKR’s investments may include the activities of its
sponsored funds. For additional information about KKR & Co.
L.P. (NYSE: KKR), please visit KKR's website at www.kkr.com and on
Twitter @KKR_Co.
The views expressed herein are the personal views of Henry
McVey of KKR and do not necessarily reflect the views of KKR.
This information is not research and should not be treated as
research. It does not represent valuation judgments with respect to
any financial instrument, issuer, security or sector that may be
described or referenced herein and does not represent a formal or
official view of KKR. It is being provided merely to provide a
framework to assist in the implementation of an investor's own
analysis and an investor's own views on the topic discussed herein.
There can be no assurance that an investment strategy will be
successful. Historic market trends are not reliable indicators
of actual future market behavior or future performance of any
particular investment which may differ materially, and should not
be relied upon as such. This information should not be viewed
as a current or past recommendation or a solicitation of an offer
to buy or sell any securities or to adopt any investment
strategy. References to a target portfolio and allocations are
hypothetical allocation of assets and not reflect an actual
portfolio. The views expressed herein and discussion of any target
portfolio or allocations may not be reflected in the strategies and
products that KKR offers or invests, including strategies and
products to which Mr. McVey may provide investment advice to or on
behalf of KKR. It should not be assumed that Mr. McVey has made or
will make investment recommendations in the future that are
consistent with the views expressed herein, or use any or all of
the techniques or methods of analysis described herein in managing
client or proprietary accounts. This release may contain
projections or other forward‐looking statements. Neither KKR
nor Mr. McVey assumes any duty to update such
statements.
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KKRKristi Huller or Cara Kleiman, 212-750-8300media@kkr.com
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