Asian Asset Managers Launch AI Funds Amid Market Correction

Asset managers in Asia are launching new AI-focused stock funds to capitalize on strong demand from local and international investors. This push continues despite a recent global correction in artificial intelligence stocks, reflecting a broader trend of using regional savings to fund the growth of Asian AI companies as they transition to public markets.

Granite Asia partnered with DBS Group Holdings in February to launch a US$110 million AI IPO fund targeting wealth clients across Europe, South Asia, and Southeast Asia. Jenni Lee, a senior managing partner at Granite Asia, noted a specific gap in the capital infrastructure available for Asian AI firms entering public markets.

Industry trends show a shift in investor preference toward co-investment platforms or single-asset special purpose vehicles over traditional blind pool structures, as investors seek greater transparency and near-term liquidity. Kher Sheng Lee of AIMA Singapore reported that demand for AI exposure remains strong, while Thomas Kim of Hogan Lovells expects more AI-focused funds to enter the market later this year.