From 2008 to present, 64 private equity buyout vehicles with a main investment focus on Asia successfully held a final close, collectively raising an aggregate $48.9bn in capital commitments. These 64 Asia-focused vehicles were raised by 55 private equity fund managers, with the majority based in Asia (75%). South Korea (22%), Hong Kong (15%), Japan (13%) and China (11%) are home to most of the Asia-based GPs in this pool, with the remaining Asia-based fund managers headquartered in countries such as India, Malaysia, Singapore and Kazakhstan. Sixteen percent of fund managers that have successfully raised an Asia-focused buyout fund are based in US; the remainder are based in the UK, Kuwait, and Cayman Islands.
In terms of geographies, a significant proportion of Asia-focused buyout vehicles which held a final close during this period have an allocation to China (40%). Twenty-nine percent of Asia-focused buyout vehicles have an allocation to South Korea, and 22% have an allocation to Japan.
2008 was the most successful fundraising year for fund managers raising Asia-focused buyout vehicles in the period 2008 to present, when 21 such vehicles held a final close, collectively raising an aggregate $19.5bn. The total fundraising figure, however, fell sharply the following year, where only 12 such vehicles held a final close, raising $4.7bn in aggregate capital. This resulted in 2009 being the worst fundraising year during this period.
China-based private equity firm Hony Capital has raised the largest amount of capital for buyout investments in Asia in the period 2008 to present, raising an aggregate capital of $6.1bn over four private equity vehicles. Its largest vehicle, Hony Capital Fund V, raised close to $2.4bn in aggregate capital in early 2012. Hony Capital was established in 2003 and primarily seeks buyout investments in China-based companies operating in a wide range of industries, such as renewable energy, healthcare and media sectors. It will also invest opportunistically in other Asian countries.