Preqin’s data currently shows that there are 416 private equity fund managers headquartered in Greater China. China is the most favored country within the region, in terms of the number of fund managers, with 267 firms operating out of the country. There are 116 fund managers headquartered in Hong Kong (including Macau), and the remaining 33 are based in Taiwan. Just over half of these fund managers focus predominately on growth capital investing (57%) and over 43% concentrate on venture capital funds. The remainder utilize a variety of other strategies, including buyout and mezzanine.
Preqin’s fund manager profiles reveals that, collectively, private equity firms located in Greater China have raised just over $167bn over the past 10 years and are sitting on an estimated $76bn in uncalled capital. In terms of funds raised, China-based GPs have the greatest amount of capital, with $108bn in total funds raised and $52bn available in dry powder over the last 10 years alone. Hong Kong-based private equity firms have raised over $57bn in the last 10 years and have an estimated $24bn in dry powder. Private equity firms located in Taiwan raised a smaller amount of $1.9bn in the same time period and have over $479mn in available capital.
The top fund managers located in each region, ranked by the aggregate capital raised over the last 10 years, are Affinity Equity Partners in Hong Kong, Hony Capital in China and CID Group in Taiwan.
Hong Kong-based private equity firm Affinity Equity Partners has been the most active fund manager based in the Greater China region, having raised $7.3bn in the last 10 years. Founded in 2004, the private equity firm focuses on companies in the Asia-Pacific region and has a particular interest in Australia, New Zealand, Greater China, Hong Kong, Japan, South Korea, Singapore and Taiwan. Affinity Equity Partners recently held a final close of $3.8bn for its fourth USD-denominated fund.
Hony capital, a China-based private equity firm is the second most active fund managed in the Greater China region. It has managed to raise $6.9bn in the last 10 years. Founded in 2003, Hony Capital focuses on privatization and restructuring opportunities of State Owned Enterprises in traditional industries. The firm recently held a final close on CNY 1bn for its Hony Capital Mezzanine Fund.
Founded in 1998, Taiwan-based CID Group focuses on venture investments in Taiwan, Hong Kong, China, Korea and the US. In terms of capital raised in the last 10 years, CID Group has raised $725mn. CID Group invests in the healthcare, education, high-tech and internet industries. The firm recently held a final close of $1bn for its CID Greater China Fund IV.