Despite 2021's regulatory changes, Greater China’s private equity & venture capital (PEVC) industry continues to expand and present opportunities. PEVC assets under management (AUM) grew by 25% year-on-year to $1.78tn in 2021. PEVC fundraising also remains buoyant despite a lower number of funds, with more capital raised by USD-denominated funds compared to RMB-denominated funds in 2021.
Venture capital continues to expand, with AUM at $675bn as of June 2021, an increase of 34% since December 2020. Deals also rose, achieving an aggregate value of $133bn – 48% more than the previous year and more than double that of 2019. Challenges in listing may affect long-term investor confidence but could also contribute to the growth of China’s secondary buyout market.
This territory guide on Greater China seeks to help institutional investors and other international allocators better understand China’s macroeconomic outlook and investing in PEVC. Read the full report for further insight.
This territory guide is also available in Chinese.
Read our latest Private Equity and Venture Capital in Greater China 2023: Preqin Territory Guide for the latest data and insights.