Asian Buyout Deals by Investment Type - 2011

by Jessica Hull

  • 01 Mar 2012
  • PE

In 2011, 24% of Asian private equity-backed deals were leveraged buyouts, with LBOs contributing 38% of aggregate deal value. Leveraged buyouts added the greatest percentage of aggregate deal value of any deal type in Asia last year. Overall, the percentage of leveraged buyouts worldwide has decreased since 2010, with leveraged buyouts making up 30% and 49% of the number and aggregate value of deals, respectively in that year. 

Asian buyouts were surpassed by growth capital deals in terms of number in 2011 and 2010. Such transactions contributed 34% of the total number of Asian PE-backed deals last year, yet represented just 18% of aggregate value. This highlights that growth capital deals in Asia, even though are high in number, are often smaller than average in dollar terms – the direct opposite of LBOs.

Mirroring the global increase in add-on deals, the percentage of Asian bolt-on transactions increased from 7% of private equity-backed deals in 2010, to over double this percentage in 2011. In the same way as growth capital deals, these deals are typically smaller in size, and as a consequence account for a greater proportion of the total number of deals, but a lower average aggregate deal value.

The breakdown of number and aggregate value of Asian private equity-backed deals in 2011 by type has also increased for both PIPE and public to private deals. Collectively in 2010, these investment types accounted for 18% of the number of deals and 25% of aggregate value, whereas both of these proportions have increased to 26% and 43%, respectively. This high proportion of aggregate value in these two deal types could be explained by six deals being valued over $500mn. This includes the announcement of the privatisation of QSR Brands Berhad by CVC Capital Partners and Johor Corporation for MYR 5.24bn, as well as the PIPE investment in China Biologic Products, Inc. valued at $903mn, both of which were announced in December 2011.

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