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APER0612YE

APER 2006 Year-End Review
  • A 19% increase in incoming funds, to US$25.2 billion
  • China ranked first for largest fresh funds pool for a single country, raising US$4.6 billion
  • US$50.68 billion in deal value aggregate, a 206.10% increase from 2005
  • Average deal size has increased 2.4 times
  • A total of 182 exits were known to have been initiated
  • US$10 billion has been realised from US$4.39 billion of invested capital

In all its dimensions, 2006 was another banner year for private equity in Asia, further reinforcing the trends established in 2005. The arrival of each calendar month brought news of either record fresh funds or deals. Read in-depth analysis, plus extensive charts and data from the APER Year-End Review 2006.

Funds
  
  • US$25.2 billion of fresh capital has come into the market in the 12 months ending December, representing an increase of 19% compared to the US$21.2 billion for 2005.
  • The number of funds contributing to the fresh funds pool in 2006 was 111, a modest 6% increase over the 105 recorded for 2005.
  • The average fund size has increased by 12.5% to US$226.8 million, from US$201.5 million in the preceding 12 months.
  • Buyout funds dominated the 2006 fund pool profile, accounting for US$11.0 billion, or 44%, and was a 27.6% increase compared to US$8.64 billion for 2005.

Growth of Asian Private Equity Fund Pool (2001 – 2006)

Investments
  
  • US$50.68 billion in transaction aggregate recorded, a 206.10% increase from the US$16.56 billion of 2005.
  • Transaction sum soared to a record high, with the number of deals consummated in the 12 months ending December 2006 recording a 26.3% increase, to 403, compared to 319 in 2005. The relatively modest growth in the number of deals underscores investors shifting their focus to larger deals.
  • Average deal size has increased 2.4 times to US$125.77 million compared to that for 2005

The Billion Dollar Deals (2006)

Divestments
  
  • A total of 182 exits were known to have been initiated in 2006, a slight decline compared to the 200 for 2005.
  • Initial public offerings (β€˜IPOs’) continued to dominate the exit route, with 62.6% of the liquidation of stakes achieved through such means, with the residual being taken by trade sales.
  • US$10 billion has been realised in 2006 from US$4.39 billion of invested capital.
  • Returns on realised portfolio companies maintained a stable trend, recording a median internal rate of return (β€˜IRR’) of 51% in 2006, compared to 56% in the preceding 12 months.

The only Year-End Review that separately examines trends in

  • Asia (including Japan)
  • Asia (ex-Japan)
  • China & India
  • Japan only
Contents

Summary Points – Funds, Investments, Divestments (Asia including Japan)
Summary Points – Funds, Investments, Divestments (Asia ex-Japan)
Data Overview & Analysis (Asia including Japan)
Data Overview & Analysis (Asia excluding Japan)
Data Overview & Analysis (China & India)
Data Overview & Analysis (Japan Only)

Selected Charts

A total of 32 charts are available with the Year-End 2006 Review. Some selected charts follow.


Figure
Title
Asia Including Japan
Funds
Fig. 1 Growth of Asian Private Equity Fund Pool (2001 – 2006)
Fig. 2 Annual Growth of Private Equity Funds (2002 – 2006)
Fig. 3 Growing with Funds: Asia’s Mega Funds
Fig. 4 Distribution of Private Equity Funds (2005 – 2006)
Fig. 5 Distribution of Private Equity Fund Pool by Geographical Focus (Jan – Dec 2006)
Investments
Fig. 6 The Billion Dollar Deals (2006)
Fig. 7 Stages of Investment in Asia (2005 – 2006)
Fig. 8 Deal Nature – Asia (2005 – 2006)
Fig. 9 Investment Destinations – Asia (Jan – Dec 2006)
Fig. 10 Industrial Profile (Jan – Dec 2006)
Divestments
Fig. 11 Divestment Profile – Asia (2005 – 2006)
Fig. 12 Returned Capital in IRRs and Multiples Ranges (2006)
Fig. 13 Returned Capital – Asia (2006)
charts also for ..
Asia Excluding Japan
China & India
Japan Only

 

Now Available
The full 24-page issue of the APER Year-End Review 2006, with full charts and analysis, is now available for US$649 /GB430 / HK$5,065/ SG$1,055 . Please contact us to order.

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