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APER0806MY

APER 2008 Mid-Year Review

Private equity momentum in Asia continued to accelerate during the first half of the year, with impressive increases in both funds and investments, largely fuelled by activities in both China and India. However, returns declined as the corrosive effects of a deteriorating global stock market began to emerge -

Institutional Investors
  
  • 187 limited partners ('LPs') were known to have made allocations to 101 Asian private equity funds in the first half of 2008. The number of LPs participating in fund allocations has increased by 30.8%
  • LPs based in Asia dominated, accounting for 70.0% of the allocations, while the number for those based in the USA has declined by 55.1%
  • LPs in China have emerged as the main source of capital, accounting for 43% of the allocations which have been focused on domestic funds only
  • LPs favoured growth/expansion and venture capital funds, which accounted for a combined 70.6% of the allocations

Distribution of LPs (Jan - Jun/2008)

Funds
  
  • US$26.5 billion of fresh capital has come into the market in the first half of 2008, representing an increase of 33.3%
  • The average fund size has increased by 45.6% to US$304.1 million, from US$208.9 million
  • Buyout funds dominated the capital pool in 2008’s first half, accounting for US$10.2 billion, or 38.5%
  • Infrastructure funds boasted the biggest increase, attracting US$3.0 billion, representing a 13.5 multiple to the US$222.8 million recorded 12 months ago

Annual Growth of Asian Private Equity Fund Pool (2003 - Jun/2008)

Investments
  
  • The first half of 2008 witnessed US$30.5 billion in commitments, a 52.6% increase compared to the first six months of 2007
  • 404 transactions known to have been consummated, a slight 3.8% increase compared to the same period in 2007
  • The average deal size has increased to US$86.5 million in the first half of 2008, compared to the US$55.6 million in the same period in 2007

Investment Destinations - Asia (Jan - Jun/2008)

Divestments
  
  • 103 divestment processes initiated by investors, a 34.8% decrease compared to 158 for the same period in 2007
  • US$6.9 billion has been returned to investors for aggregate invested capital US$1.95 billion
  • Initial public offerings ('IPOs') and/or sales through the secondary public market accounted for 70.9% of the divestment movements, while trade sales took up the balance
  • IPOs, however, only accounted for a mere 8.5% of the realised capital, while trade sales returned over US$6.3 billion to investors

Capital Return Profiles (Jan - Jun/2007 & 2008)

Contents

Summary Points: Institutional Investors, Funds, Investments, Divestments (Asia including Japan)
Data Overview & Analysis (Asia including Japan)

  • Institutional Investors
  • Funds Pool
  • Investments (Asia including Japan)
  • Investments (Asia excluding Japan)
  • Divestments
Data Overview & Analysis (China & India)

Selected Charts

A total of 25 charts are available with the Mid-Year2008 Review. Some selected charts follow.


Figure
Title
Asia Including Japan
Institutional Investors
Fig. 1 Distribution of LPs (Jan - Jun/2008) - by Number of Fund Allocations
Fig. 2 Profile of LPs in Asian Private Equity Funds (Jan - Jun/2008) - by Number of Fund Allocations
Fig. 3 Nature of Fund (Jan - Jun/2007 & 2008) - by Number of Fund Allocations
Fund Pool
Fig. 4 Annual Growth of Asian Private Equity Fund Pool (2003 - Jun/2008)
Fig. 5 Aggregate Asia Fund Pool (2003 - Jun/2008)
Fig. 6 Five Largest Billion Dollar Funds (Jan - Jun/2008)
Fig. 7 Distribution of Private Equity Funds
Fig. 8 Distribution of Private Equity Fund Pool by Geographical Focus (Jan - Jun/2008)
Investments (Asia - Including Japan)
Fig. 9 Investment Destinations - Asia (Jan - Jun/2008)
Fig. 10 Largest Three Investments in Asia (Jan - Jun/2008)
Fig. 11 Stages of Investment (Jan - Jun/2007 & 2008)
Fig. 12 Deal Nature (Jan - Jun/2007 & 2008)
Fig. 13 Industrial Profile (Jan - Jun/ 2008)
Investments (Asia - excluding Japan)
Fig. 14 Investment Destinations - Asia ex-Japan (Jan - Jun/2008)
Fig. 15 Stages of Investment - Asia ex-Japan (Jan - Jun/2008)
Fig. 16 Deal Nature - Asia ex-Japan (Jan - Jun/2007 & 2008)
Fig. 17 Industrial Profile - Asia ex-Japan (Jan - Jun/2008)
Fig. 18 Divestment Profile (Jan - Jun/2007 & 2008)
Fig. 19 Capital Return Profiles (Jan - Jun/2007 & 2008)
Fig. 20 Geographic Distribution of Capital Returned (Jan - Jun/2008)
charts also for ..
China & India

 

Now Available
The full 24-page issue of the APER Mid-Year Review 2008, with full charts and analysis, is now available for HK$5,065 / US$649 / SG$1055 / GB430. Please contact us to order.

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