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Private Equity Deal Activity in the BRIC Region 2012 YTD (as of 13 December 2012)

by Kevin Smith

  • 13 Dec 2012
  • PE

Since 2006 to present (as of 13 December 2012), the BRIC region, consisting of Brazil, Russia, India and China, has seen $71.9bn in aggregate capital invested across 1144 buyout deals. In 2010, Brazil dominated the economic region attracting $5.8bn in private equity investment. In 2011 India attracted the largest amount of regional investment with $6.5bn in aggregate capital, accounting for 40% of the region’s aggregate deal value. In 2012, fund managers are increasingly looking to China to deploy their capital.

Figures recorded for 2012 YTD show that private equity investment in China has increased from $5.7bn in 2011, to $5.9bn in 2012; buyout deal volume is up 16% over the same period. Deal volume in India has increased 18.5% while aggregate deal value for the country has decreased 26% in comparison to 2011 figures. Nonetheless, India remains a popular destination for fund managers with the country attracting $4.8bn in investment in 2012 YTD.

For Brazil, buyout deal volume and value has increased in 2012 versus levels seen in 2011. In 2012 to date the country has seen $1.9bn in private equity investment (versus $1.6bn in 2011) and deal volume is up 33% over the same period. Buyout deal volume in Russia has remained constant this year, however aggregate deal value has dropped from $2.4bn in 2011 to $0.7bn in 2012.

Of the top 10 largest buyout deals announced in the BRIC region this year, six have been in China; this includes the largest deal announced in the region, the $1.9bn PIPE deal of Alibaba Group by Boyu Capital, CDB Capital and Citic Capital, as well as by returning investors DST Global, Silver Lake and Temasek Holdings. Other notable deals include the $500mn buyout of China-based HCP Holdings by TPG and the $364mn take private of China-based Fushi Copperweld by Abax Global Capital.

Preqin Buyout Deals Analyst reveals that there have been 2,696 global private-equity backed buyout deals with an aggregate value of $233bn in 2012 YTD. The BRIC economies represent 6% of the total value and 10% of total buyout deal volume.

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