Emerging Asia

Emerging Asia accounts for half of emerging market-dedicated private equity funds raised and two-thirds of capital invested across all emerging markets. The Asian private equity market has ballooned in recent years with the emergence of hundreds of local fund managers and the entry of several North American and European firms with dedicated teams and funds. Funds investing in Emerging Asia raised a staggering US$48 billion in 2006 and 2007, compared to US$27 billion raised between 2001 and 2005. The advent of outsized regional funds has fueled this buildup of capital. In 2007 and 2008 alone, more than a dozen funds of US$1 billion or more entered the Asian PE market, including 5 funds topping US$4 billion each.

Institutional investors with an eye towards entering emerging markets tend to focus their allocation strategies initially on Asia. EMPEA’s LP Surveys indicates this trend is likely to continue over the next several years, with 89% of LPs expecting to invest in the region within the next five years, versus 83% investing there today.

While pan-Asian funds dominate the Emerging Asia PE landscape, with 68% of funds raised in 2008, China and India together account for 80% of capital raised for country-dedicated funds in Asia. These two markets alone captured 60% of total investment between 2003 and 2007. South Korea and Taiwan follow, with 30% of investment over the same period. Private equity is growing rapidly in a number of other emerging PE markets, notably Vietnam, Thailand, Indonesia and Malaysia. Even the most nascent Asian PE markets—the Philippines, Cambodia and Bangladesh—are beginning to develop local private equity industries.

Additional Resources:
EMPEA Research
(Available exclusively to EMPEA Members)

• QR China Feature (2005)
• QR Southeast Asia Feature (2007)
• QR India Infrastructure (2008)
• QR Chinese LP article (2008)
• Leeds HK Presentation (2007)
• EMPEA Insight China (2008)

Members, please login here to access the files.

Related Links:

• IVCA
  (India Venture Capital Association)
• CVCA
  (China Venture Capital Association)
• HKVCA
  (Hong Kong Venture Capital Private Equity Association)

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