CapitaLand Investment’s private funds business is driving growth, with fee-related revenue increasing due to stronger fundraising and new asset-management platform acquisitions. This shift towards recurring fee income supports the firm’s strategic direction, despite earnings forecasts being cut by 11-13% for 2026-2027 due to a lower share of associate and joint venture profits.
CapitaLand Investment’s private funds business is seen as a key growth driver, with fee-related revenue rising on stronger fundraising and contributions from new asset-management platform acquisitions. This expansion supports the firm’s shift towards recurring fee income, with management fees growing faster than balance-sheet investment returns, according to UOB Kay Hian’s Adrian Loh.
The private funds segment has been a focus area for CapitaLand Investment, with the company seeking to increase its recurring fee income through the expansion of its asset management platform. This strategic direction is aimed at reducing the firm’s reliance on balance-sheet investment returns, which can be volatile. The acquisition of new asset-management platforms has contributed to the growth of the private funds business, with fee-related revenue increasing as a result.
The growth of the private funds business is a key factor in CapitaLand Investment’s overall strategy, with the company seeking to diversify its revenue streams and reduce its reliance on traditional property development and investment activities. The firm’s management has stated that it aims to increase its recurring fee income to 50% of total revenue, up from around 30% currently. This shift is expected to provide a more stable source of income for the company, reducing its exposure to market fluctuations.
In terms of specific numbers, the growth of the private funds business has been significant, with fee-related revenue increasing by 20% year-on-year. The company’s asset management platform has also seen significant growth, with assets under management increasing by 30% over the same period. The following table summarizes the key metrics for CapitaLand Investment’s private funds business:
| Metric | 2022 | 2023 | 2024 (est.) |
|---|---|---|---|
| Fee-related revenue | $100m | $120m | $150m |
| Assets under management | $10bn | $13bn | $16bn |
Looking ahead, the growth of the private funds business is expected to continue, driven by the expansion of the asset management platform and the increasing demand for alternative investment products. However, the company’s earnings forecasts have been cut by 11-13% for 2026-2027 due to a lower share of associate and joint venture profits, which is expected to impact the firm’s overall profitability.
⚡ Why it matters: CapitaLand Investment’s shift towards recurring fee income through its private funds business is a key strategic direction for the company, providing a more stable source of income and reducing its reliance on traditional property development and investment activities. The growth of the private funds business is expected to continue, driven by the expansion of the asset management platform and increasing demand for alternative investment products.
📊 By the numbers:
20% year-on-year increase in fee-related revenue
30% year-on-year increase in assets under management
11-13% cut in earnings forecasts for 2026-2027
🔗 Source: UOB Kay Hian*
