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

2015 saw the highest annual aggregate value of private equity-backed buyout deals in Asia, and it also set a new record in venture capital funding according to a new study by Preqin Ltd., which measured deals for the last ten years, until January 26, 2016.

In South Asia, almost all of the deals happened in India, which saw a record year itself. But that was nowhere near the heights reached by China.

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In terms of the total value of private equity-backed buyout deals, Greater China accounted for about $30 billion out of the Asian aggregate of $47.9 billion for about 250 deals in Asia.

Investment by private equity players has accelerated sharply in the country since 2011, when buyouts worth about $8 billion had happened. It has been rising ever since, and touched a new high last year. Investment amount also rose in South Asia, led primarily by India, but fell in the Asean and northeast Asian regions.

In terms of number of deals, the majority happened in South Asia, followed by China, northeast Asia, and the Asean region. That means that deal sizes were smaller in India, than in China.

The number of deals was highest in 2011, when more than 450 PE-backed buyout deals took place. That number has steadily fallen since then, while the value of deals has risen, indicating that investors are going for bigger deals and getting more control.

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Healthcare grabbed the majority of buyout deals, with about 28 per cent of the total number of deals. The sector was followed by industrials (25 per cent) and consumer & retail at about 17 per cent. Business services and energy (including utilities) rounded off the top five sectors.

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Private equity players had a great year in terms of exits in the region in 2015, with a record high of $44.5 billion, compared with $31.3 billion in 2014. South Asia had the highest number of exits, followed by greater China and northeast Asia.

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The top PE-backed deals were:

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Venture Capital Deals

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Again, China towered over the rest when it came to venture capital investments. Companies in the country got about $38 billion of investments from VC firms, out of a total of $50 billion invested in Asia. That’s more than double of what it got the year before.

South Asia (read India) was next, with about $8 billion in VC funding. Asean and northeast Asia lagged behind, with each region getting less than $3 billion of VC money.

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Internet firms got the majority share, with about 41 per cent going that way in terms of number of deals, followed by investments in telecom and industrials.

Just like PE firms, VCs also had a good year in terms of exits, with more than 250 such deals, compared with 175 in 2014. However, the story changed when it came to value of deals. There were $15 billion worth of exits last year, less than half of the $39 billion that VCs made in 2014 through such deals. That indicates smaller deal sizes on average, outside of a few big investments.

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The top 5 deals by value in 2015 were:

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Also read:

Is the M&A Market as sturdy as it seems? Maybe not!

India: Despite uncertain market outlook, PE firms going for IPO exits

Deals-driven hedge funds post lacklustre returns despite M&A boom in 2015

Asia Pacific sees record 2354 cross-border M&As in 2105; deal values exceed $500b: Baker & McKenzie

 

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.