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Asia-Based Fund Managers Targeting Growth Opportunities in Greater China - 2008 to October 2012

by Aveline Tan

  • 12 Oct 2012
  • PE

From 2008 to present, 96 Greater China-focused growth vehicles raised by 67 Asia-based fund managers have successfully held a final close, collectively raising an aggregate $27.2bn in capital commitments. Unsurprisingly, the majority of Greater China-focused growth vehicles were raised by mainland China-based fund managers (79%), and the remainding funds were raised by Hong Kong, Japan, Singapore and Taiwan-based fund managers.

China-based private equity firm New Horizon Capital has raised the largest amount of capital from 2008 to present for growth investments in Greater China, securing total capital commitments of $2.6bn over four private equity vehicles. New Horizon Capital was established in 2005 and seeks to invest in growth stage Chinese companies operating in a wide range of industries such as high-tech, media and internet sectors.

2009 was the worst performing year for Asia-based fund managers raising Greater China-focused growth vehicles from 2008 to present. In this year, only nine private equity vehicles held a final close, collectively raising an aggregate $2.5bn. This was a decrease from 2008, when an aggregate $4.1bn was raised by 12 private equity funds. However, fundraising for China-focused growth vehicles soon experienced a marked improvement the following year, when 26 private equity funds held a final close, raising an aggregate $8.1bn in 2010.

2011 was the best performing year for Asia-based fund managers raising Greater China-focused growth vehicles, with 35 such vehicles holding a final close and raising an aggregate $8.7bn in capital commitments. Shanghai Ruili Emerging Industries Parallel Fund I was the largest Greater China-focused growth vehicle to close in 2011, raising $1.1bn. The vehicle is managed by China-based private equity firm Real Power Capital. Real Power Capital was established in 2011 and seeks to invest in growth stage Chinese companies operating in sectors such as clean technology, telecommunications and biotechnology.

There are currently 45 Greater China-focused growth vehicles in market being raised by Asia-based fund managers, seeking to raise an aggregate $18.9bn in capital commitments. To date, 14 Greater China-focused growth vehicles have held a final close in 2012, securing a total of $3.7bn in capital commitments from investors.

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