Asia-Based Private Equity Fundraising Statistics – November 2012

by Yong Xiang Pua

  • 30 Nov 2012
  • PE

As 2012 draws to a close, there are 227 Asia-based private equity funds (excluding secondaries, funds of funds, and real assets funds) that are currently on the road, seeking an aggregate target of $62.9bn in capital. $12.1bn worth of capital commitments have already been secured so far this year via at least one interim close by 101 Asia-based private equity funds.

China houses the largest fundraising pool of Asia-based private equity fund managers, where 73 GPs are seeking to finalize their vehicles. India is home to 48 fundraising GPs and Hong Kong serves as the main headquarter for 32 fundraising private equity fund managers. A significant number of GPs are based in Singapore (28) and Japan (20). The remaining 26 fundraising GPs are headquartered in South Korea, Vietnam, Thailand, Cambodia and other Asian countries.

China-based private equity fund managers also have the largest fundraising target, collectively seeking $22.6bn in aggregate capital or 36% of the entire Asia-based fundraising target. Hong Kong-based GPs have the second largest aggregate fundraising target ($16.9bn) while GPs in India are seeking to raise an aggregate $8.6bn in capital commitments. Other countries that have a sizeable collective fundraising goal include Singapore ($4.8bn), South Korea ($4.2bn), and Japan ($3.3bn).

Growth funds are the strategy most favored by Asia-based GPs in terms of the number of funds on the road and aggregate fundraising target; 115 growth funds are seeking $32.9bn in capital commitments. Venture capital is the next most numerous fundraising fund type in Asia as 63 venture capital funds, including both stage specific and generalist funds, are looking to raise an aggregate target of $7.0bn in capital commitments. In comparison, 24 Asia-based buyout funds are looking to raise a significantly larger aggregate fundraising target of $16.9bn. Distressed private equity, mezzanine, and other fund types are some of the strategies used by Asia-based fund managers.

Forty-three percent of the private equity funds in Asia appointed a placement agent to aid GPs in their fundraising efforts. These vehicles, however, have only managed to secure close to 17% of their fundraising targets. Asia-based private equity funds that do not use placement services managed to secure nearly a third of their fundraising target without such assistance. While placement agents are hired to aid fundraising efforts, the above suggests that the success of fundraising is still largely dependent on how appealing the fund strategy and GP is to private equity investors.

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