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Private Equity Fund Managers Targeting Asian Buyout Opportunities, 2008 to January 2013

by Aveline Tan

  • 18 Jan 2013
  • PE

From 2008 to present, there have been 57 private equity fund managers that have successfully raised funds targeting buyout opportunities in Asia, collectively raising an aggregate $49bn from 66 vehicles. Approximately 64% of this aggregate capital has yet to be deployed. China-based fund managers account for the largest proportion of aggregate capital (26%) raised within this pool, with $12.8bn in commitments from 11 different vehicles. This is followed by US-based fund managers (19%), Hong Kong-based fund managers (17%), and UK-based fund managers (15%). The remaining fund managers are based in countries such as South Korea, Japan, Malaysia, Indonesia and India.

During this period, China was also the most popular investment destination for private equity fund managers seeking buyout opportunities in Asia; 42% of vehicles closed planned to allocate capital to China-based companies. This is followed by South Korea and Japan, where 29% and 21% of vehicles closed during this period targeted companies based in each country respectively.

Unsurprisingly, more than half of the private equity fund managers (75%) targeting buyout opportunities in Asia are based in the region. China-based fund manager Hony Capital is the largest private equity firm targeting buyout opportunities in Asia by aggregate capital, having raised $6.1bn via two USD-denominated vehicles and two RMB-denominated vehicles. The fund manager primarily seeks buyout opportunities in China-based companies operating in a wide range of industries, such as manufacturing, pharmaceuticals and renewable energy sectors. It will also invest in companies operating in other Asian countries and European companies opportunistically.

A notable US-based private equity fund manager targeting buyout opportunities in Asia is TPG. TPG raised $3.8bn via TPG Asia V, in 2008, which is seeking buyout investments in Japan, South Korea, India and China amongst others. TPG participates in buyout, growth and distressed investment opportunities across a wide range of geographies such as North America, Europe and Asia.

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