China Private Equity Report Q2 2009

【Publication Date】
09-08-30
【Delivery Format】
Soft Copy
【Pages】203
【Charts】74
【Price】150USD
【Chinese Version】
1000RMB
Sample Menu Buy Now!

Chinese PE market has picked up moderately in Q2'09. A total of five PE funds available for investment in Asia (including Chinese mainland) completed fundraising of US$1.82B in this quarter. In the meanwhile, 13 mainland-based enterprises received investment from PE funds, and 11 of them disclosed a combined US$5.31B. In Q2’09, 13 PE funds exited their investment, including ten via IPO.

China Private Equity Report Q2 2009, published by Zero2IPO Research Center, presents detailed statistical analysis of the domestic PE market in terms of fundraising, investment and exit. It also includes specific cases in various sectors such as real estate, banking, retail, public media and new energy. Interpretation of the Fundraising Status quo of RMB Private Equity Funds, a special issue of this report, explores in detail the macro-background and legal framework for China’s launch of RMB funds. In the mean time, the report also points out the major obstacles in developing RMB funds in our country and give suggestions on existing problems.

I. Newly-raised Capital Increases Three-fold Quarter-on-quarter; Growth Funds Dominate

A total of five PE funds available for investment in Chinese mainland completed fundraising of US$1.82B, a three-fold increase of from Q1’09 but a 83.6% decrease from a year earlier. By fund type, Growth fund played a leading role among the newly-raised PE funds in Q2’09. A total of four growth funds collected US$1.75B.

II. PE Investment Picks up; Services Investment Eye-catching

In terms of investment, Q2’09 saw 13 investment deals in Chinese mainland, which involved an aggregate amount of US$5.31B. The number of deals was down by 72.3% from 47 in Q2’08 and 31.6% from 19 in Q1’09. The total investment amount rose 85.4% from US$2.86B a year earlier and ten folds from last quarter’s US$470.00M. In this quarter, investment in Services sector was eye-catching, with four enterprises attracting a total of US$4.86B from PE funds, accounting for 30.8% of the total investment deals and 91.5% of the amount. Compared with Q1’09, Services saw increases in proportion of both deal number and amount.

III. Exit of PE Funds on the Rise; IPO Continues to Dominate

A total of 13 exit deals took place in this quarter, up 120% from six a year earlier and 200% from Q1’09. IPO remained the top option for PE funds to exit their investment, claiming 10 exit deals, or 76.9% of the total. One deal was closed via buyout wherein the financial investor transferred the equity to the industrial investor.