IPOs drive PE exit value in emerging markets up 70% from 2013 to 2015

The aggregate private equity exit value in emerging markets has increased substantially in recent years, from $27.7 billion in 2013 to $47.1 billion in 2015, a 70 per cent increase in those two years.

Of that, initial public offering (IPOs) have been the most common exit route for buyout deals since 2009, followed by trade sales and then sales to GPs, a special report by Preqin on Private Equity in Emerging Markets showed.

The number of private equity-backed buyout deals in emerging markets increased from 529 investments completed in 2008, to 690 in 2011, while the aggregate deal value increased by 16 per cent to $33.6 billion.

Since 2012, the number of deals in emerging markets has declined but aggregate deal value has continued to rise.

Preqin EM Fig 21

In 2015, 430 deals were announced or completed with a combined value of $53.4 billion. At 55 per cent, Asia has accounted for the majority of buyout deals in emerging markets since 2010.

Preqin EM Fig 24

Averting to venture capital, emerging Asia, which excludes Japan, Hong Kong and Singapore, has dominated the industry among emerging markets since 2010, accounting for 84 per cent of the total number of financings.

In 2015, emerging Asia represented 93 per cent of the number of financings and 98 per cent of the value.

The number of venture capital deals across emerging markets has increased steadily each year, from 625 deals in 2009 to a record 3,456 deals in 2015. Among the funding stages, early-stage deals have grown in proportion.

Preqin EM Fig 27

Preqin noted that 2015 represented a record year for the aggregate value of deals in emerging markets, at $50.1 billion, representing a 112 per cent increase on the value of financing from the previous year.

“2016 looks set to be another strong year, with the aggregate value in H1 already reaching $29.8 billion, an increase of seven per cent from H1 2015,” the report said.

Preqin EM Fig 28

Also read:

Emerging markets PE managers’ assets touch record high of $300b at Sept’15

China leads rest of Asia in value of VC/PE deals, South Asia comes second

Asia venture capital deal activity falls further from record high of last year

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.