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.
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.
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 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.