Private Equity

Asia Pacific PE deals volume reached $11.5 bln by September 2010. The Food & Beverage sector accounted for 13% of regional activity, drawing $1.4 bln of investments from 18 firms. The Retail and Financial Industries follow with $1 bln each in PE investments. The top three industries make up 30% of the total.

Chinese companies were the biggest beneficiaries of PE investments in the Asia region, attracting $3.4 bln worth of disbursements for 29% of regional market share. China received investments from 142 firms, followed by India, which received $2.9 bln from 122 firms, accounting for 26% of the total.

Top three deals in Asia 2010 are:

1. Shouguang Agricultural A$600 mln

2. China Redstar Furniture $381 mln

3. China Huiyuan Juice $260 mln

China also remains the primary driver for fundraising activity in Asia, registering fundraising of $12.8 bln in the first 9 months, representing some 55% of the region's total.

Top three funds in Asia are:

1. Zhongnong Kechuang Venture Capital Fund $2.9 bln

2. Carlyle Asia Partners III $2.6 bln

3. CITIC Mianyang PE Fund $1.3 bln

Private equity's RMB rush:

• Blackstone signed a jv in Nov 2009 with the Shanghai government to create a $732 m yuan fund
• Carlyle signed deals with the Beijing government and the Fosun Group in Shanghai earlier this year.
• CDH Investment and Hony Fund, a unit of Lenovo parent, won approval in 2008 to invest money for the mainland’s huge government pension fund.
• TPG’s $1.5 bln yuan fund will become the biggest global private equity firm in the mainland’s yuan market. TPG said the yuan funds, each of which aims to raise 5 b yuan, would be able to invest in areas previously restricted by the government. TPG has invested in Lenovo, the Shenzhen Development Bank and China Grand Auto
• Shanghai and Chongqing are both working aggressively to lure global financial serv ices firms to the financial districts they are developing. Chongqing aspires to become a Chicago like centrepiece of China’s ambitious “go west” programme.