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Asia-Focused Private Equity Funds in Market (As of 22 February 2013)

by Wan Ping Chia

  • 22 Feb 2013
  • PE

Globally, there are currently 1,266 private equity funds on the road, seeking total commitments worth $553bn (excluding real estate and infrastructure vehicles). Of these funds, 283 (or 22%) of the total number have a primary focus on Asia. These Asia-focused funds are targeting an aggregate $92bn in capital commitments, and 150 of these Asia-focused funds have secured $25bn so far with at least one interim close.  

With 120 Asia-focused growth funds on the road, this fund type is the most prominent strategy among funds targeting the region. Asia-focused venture capital funds trail behind, with 76 funds currently on the road. This is followed by buyout and funds of funds, with 31 and 28 funds in market targeting Asia respectively. Government-backed programs to boost young enterprises, coupled with the types of deals available in the region, may be contributing to the abundance of growth and venture capital vehicles in this Asia’s relatively young private equity universe. Other fund types targeting Asia include mezzanine, special situation, turnaround and distressed debt.

Country-specific funds account for 63% of the total number of Asia-focused funds in market, making it the most common geographic strategy in the region. With 90 funds an aggregate $32bn in capital commitments, China-focused funds account for the largest proportion of country-specific funds focused on Asia that are currently on the road. India and Japan are other countries commonly targeted by country-specific vehicles in Asia. Fifty-four India-focused funds are seeking an aggregate $9bn, while 14 Japan-focused vehicles are looking to raise an aggregate $3bn.

Twenty-three percent, or 65, of the Asia-focused vehicles on the road target a geographic scope wider than a country-specific fund. Fifty-one percent of vehicles in this category target opportunities across the whole of Asia. Some of the remaining vehicles target specific regions within Asia, such as Greater China, South Asia or Southeast Asia; these 65 funds are targeting an aggregate $23bn in capital commitments.

The remaining 14% of Asia-focused vehicles on the road may also invest opportunistically outside of Asia in regions such as Australasia, the US and Europe. These funds are looking to an aggregate $24bn in capital commitments from investors.

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