Themes in the Asian Private Equity Industry, 2007
49886
Business > Careers
Oct 16, 2007
WJaegel
Themes in the Asian Private Equity Industry, 2007
PE in Asia has come along way in the past couple of years and with capital committed for the region combined with capital already sitting in PE funds looking for investment opportunities, the indications are that the trend will continue for some time. Just 28 months ago CVC Capital Partners raised the thenlargest Asian PE fund at US$1.98Bn. As a sign of the times the same firm is rumoured to be nearing the close on its new Asian fund at $6Bn. In the past few months KKR raised an Asian fund of $4Bn and then was outdone by TPG a few weeks later at $4.2Bn. However, this pales in comparison to the more mature PE markets of Europe and the U.S. where there have been a few funds raised in the past year in the $10Bn range. In any comparison of PE activity/size, Asia lags far behind, but is catching up. According to the Center for Asia Private Equity Research $15.4Bn was raised in the first half of 2007 for Asian PE and another $25Bn is expected to be committed in the second half ' a rise of 57% over the same period last year. Against this back-drop where capital is almost a commodity, new PE teams (GPs) are being set-up at a startling pace. These include teams that have left existing firms as well as other senior professionals who have left i-banks, consulting firms and industry to form GPs (PE management firms). The following trends prevail in the PE markets in Asia currently: - Not surprisingly, China and India remain the hottest markets and seem to offer the best opportunities for LPs. There has also been a pick-up in interest in the emerging markets of S.E. Asia while Japan shows steady albeit uninspiring interest. - The term "the tide raises all boats" was used more than a few times at a recent Asian PE conference in Hong Kong, but going forward the LPs are searching for the GPs with the differentiators, those that will have the staying power over the long haul, through the tough times. - For China investments, LPs recognize the value that teams of local PRC nationals may bring ' those that are connected through various channels and will see more exclusive investment opportunities. New legislative regulations passed in June of this year have made the PE environment in China easier for domestic players than previously when the vehicle of choice was an off-shore entity. This has encouraged several local players to establish PE funds under a limited partner structure. In the past few years the government had approved only a small number of PE funds, but this seems to be changing. The other recent notable development in the China market is the acknowledgement of the government to create more Renminbi denominated PE funds, rather than USD. At this point in time it is not only established PE teams that are able to "go it alone" in China such as the core team from Temasek's team there, who recently left to setup a new fund. As long as LPs see strong ability to source and assess deals among two or more professionals, there is likely to be interest. As an example, the head of Goldman Sachs in China, Mr. Fang Fenglei, is strongly believed to be leaving the firm to be the key person behind a new PE partnership. He is also rumoured to be targeting US$4Bn split between a USD and RMB fund. There are several other new domestic teams that are rumoured to be at various stages of development. The PE landscape in China includes foreign PE firms, affiliates of i-banks and other financial institutions, domestic GPs (not many, but growing) as well as subsidiaries or JVs of Chinese companies such as Haier, Tsinghua, Start and Legend. The PE landscape in China includes foreign PE firms, affiliates of i-banks and other financial institutions, domestic GPs (not many, but growing) as well as subsidiaries or JVs of Chinese companies such as Haier, Tsinghua, Start and Legend. 1. Access to deals that are less competitive, which perhaps only "localized" teams are able to source. 2. Localized teams are believed to be able to curry the support of the government, unlike most foreign firms. Despite the trend for LPs to back PE teams with a "local" feel in China, there are still many foreign firms coming. A few months ago one of the few domestic Japanese GPs, Advantage Partners, announced a new China operation ' the first significant player from Japan. There are several other U.S. and European PE firms investigating the possibility of setting-up in China, or are in the process of doing so already. A few foreign PE firms have entered China initially for the purpose of helping their portfolio companies develop or outsource. These include the large European firm Apax Partners as well as U.S-based Baird Partners, which have several manufacturing concerns in their portfolio. Making new investments in China will likely come when such firms raise their comfort level and understanding of the market there.
Hunt Partners is a high end Executive Search firm providing search and human capital solutions for global and regional clients who require discreet search of top management and board level positions throughout China, Hong Kong, India and across the Asia Pacific region.
send email to WJaegel
Write a Review
Add to My Favorite
Refer it to Friend
Report Article
Other links owned by this user
Bora Bora is a love at first sight. No wonder, why honeymooners, lovers, and couples flock here throughout the year to renew their marriage vows as well as to rekindle their romantic feelings.
Category:
Vacationing together with your family is a great way to bond, build memories, and spend time with your parents, spouse, children, and grand children. Phuket is perhaps the first destination that comes into your mind when you think of a relaxing vacation w
Category:
Hong Kong was once a sleepy fishing village. But, with the arrival of the British in 1842, it became a crown colony of the United Kingdom, which continued until 1997, when the British handed it over to China, after signing an historic agreement by the the
Category:
It is the tenth anniversary of the Asian financial crisis and we consider, will it happen again? First we need to know what happened. The crash itself came fast and furious. But the lead up to it started around 3 years prior and was characterized by a per
Category:
Kuala Lumpur, the hub of Malaysia, is one of the most visited tourist destinations around the world. Situated midway down the west coast of Peninsular Malaysia, Kuala Lumpur is near the meeting place of the Klang and Gombek rivers. It is the largest city
Category:
Malay cuisines are one of the world's most popular as well as unique cuisines. Malay cuisine is yummy and exciting, and is an amalgamation of cuisines of three main ethnic groups, such as, Malay, Indian, and Chinese.
Category:
Whistler is perhaps the North America's most sought after vacation spot. Apart from being a favorite ski and golf destination, Whistler also boasts of a well-earned reputation of being one of the most popular health and wellness destinations in Whistler.
Category:
Whistler is a year-round tourist destination, located about two hours drive from Vancouver, in Canada. An alpine style village, Whistler's dramatic scenery coupled with pristine lake, glacier fed streams, and amazing waterfalls is simply magnificent. Boas
Category:
Let it be small business organization or huge business set ups, project management software plays a prominent role in the effectual carrying out of a myriad of tasks in connection with communication, coordination, collaboration, budget management, documen
Category:
The capital as well as the largest city in Thailand, Bangkok is a mesmerizing destination, situated in the central region of the nation, on the low flat plains of the Chao Phraya River, near the northern tip of the Gulf of Thailand. Known as Krungthep in
Category:
Bestowed with the titles of 'Pearl of the South' and the 'Pearl of the Andaman' - Phuket is the largest island of Thailand, situated about 900 km south of Bangkok, the nation's capital.
Category:
Krabi is one of the most gorgeous tourist destinations in southern Thailand. Krabi is regarded as an excellent getaway destination swarmed with stunning natural beauty, secluded white sandy beaches, lush green forests, sparkling waterfalls, mysterious yet
Category:
Located about 250 km northwest of Tahiti, Bora Bora is an exotic volcanic island in the Leeward group of the Society archipelago in French Polynesia. Founded in 1722 by Roggeveen - a Dutch navigator, Bora Bora's history is marked by several wars held betw
Category:
Hanoi is an enchanting destination, situated in the Red Delta River, in the center of northern Vietnam. With lush green trees, beautiful boulevards, ancient shrines, dozens of dazzling lakes, and splendid French edifices.
Category:
Manila is one of the most tourist destinations in the world, with a spectrum of attractions, ranging from colonial edifices and historical and cultural sites to beautiful parks and interesting museums. Discussed further in this article are some of the mos
Category:
The DOC recently released the 2007 National Export Strategy, which outlines the Bush administration's priorities for promoting U.S. exports in the coming year.
Category:
Bangkok, also referred to as the 'City of Angels' and Krung Thep in Thai language, is one of the hottest tourist spots in Southeast Asia.
Category:
Beijing is a municipality directly under the control of the central government of China. Situated on the eastern coast of the country on the Pacific Ocean, with the Taihang Mountain to the north and the Yanshan Mountain to the west, Beijing is one of the
Category:
Scattered across a quarter of the earth's surface, The Pacific Islands is divided in to sub-regions of Melanesia (West), Polynesia (South-East) and Micronesia (North). The division is based on the their ethnic, linguistic and cultural differences.
Category:
Situated in Guangdong Province, China, Shenzhen is a city with a population of over 12 million people. Any of the travel guides of China does not say much about this city except the fact that it is good only for shopping.
Category:
Other links at Business > Careers
Your first real job interview can be a terrifying experience. Interviewees stress themselves out over what to wear and especially what to say. My experiences with job interviews have taught me not too take them too seriously. My first job interview after
Category:
This article tells the reader about the different available positions at the San Diego Airport.
Category:
Apprentice programs are generally created to assist young people with talent in gaining knowledge, competence and qualifications required for progress in the workplace, inside their industry or field of choice.
Category:
The success of your resume largely depends on how well your document reflects the need of the open position. Learn how to tailor your document to get noticed by hiring managers.
Category:
A police officer (also known as a constable in some countries) is employed in most cases by federal, state/provincial or municipal governments and has the responsibility (or duty) of enforcing federal, state/provincial laws along with municipal/city ordin
Category:
Site Sponsor
Directory Statistics
Articles: 68252
Categories: 501
Yahoo Entertainment
