Greater China-Based Investors and Clean Technology

by Aveline Tan

  • 24 Jul 2012
  • PE

Preqin currently tracks 129 private equity investors based in Greater China, which collectively manage over $5tn in assets. Sixty-one percent of these investors are based in China, followed by 23% in Hong Kong, and 16% in Taiwan.

Out of these 129 investors, 40% have an appetite for gaining exposure to clean technology through private equity funds; these investors currently allocate an aggregate $19.4bn to the asset class. Geographically, China-based investors with an appetite for clean technology account for 82% of this aggregate capital currently allocated to private equity, followed by investors based in Hong Kong which represent 15%, with investors based in Taiwan accounting for the smallest proportion at 3%.

Corporate investors and government agencies each represent 23% of LPs based in Greater China which have a preference for, or have previously invested in, funds with exposure to clean technology. As such, they account for the largest proportion of investors within Greater China that have an interest in clean technology. Fund of fund managers represent 17% of Greater China-based investors with an appetite for clean technology, followed by investment companies which account for 15%.

A significant proportion (83%) of Greater China-based investors that have an appetite for clean technology have a preference for venture capital funds. This is followed by growth funds (65%), buyout funds (35%) and distressed private equity funds which are a preference for 7% of such investors. When looking to make new fund commitments, 81% of investors based in Greater China that are interested in clean technology will consider committing to vehicles raised by first-time fund managers, including spin-off teams.

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