Asia Gets Over 90% Emerging Market Private Equity
- Author Dezan Shira
- Published July 12, 2011
- Word count 478
Emerging Asia has been repeatedly proving itself to be the world’s best investment destination, not only with its rapid economic growth and massive market potential, but also with its attraction of a huge fund inflows every year. Recent statistics released by the Emerging Market Private Equity Association show that over 90 percent of emerging market private equity (EMPE) fund inflows over the first quarter have settled in emerging Asia.
Among the roughly US$10.4 billion worth of PE funds attracted to emerging markets all over the world, around US$9.3 billion made its way to emerging Asia as its final destination, accounting for 93.3 percent to the total EMPE funds flow over the past three months.
Beating all its emerging Asian neighbors, China has become the largest EMPE fund raiser. It received funds amounting to US$5.7 billion, 6.7 times more than the US$858 million attracted by its neighbor India.
Other emerging countries in Central and Eastern Europe, Commonwealth of Independent States, Latin America, Middle East, North Africa and Sub-Saharan Africa shared the rest of the EMPE funds with a value of US$1.1 billion. The Latin America and Caribbean region, together with Sub-Saharan Africa, raised 83.9 percent of those funds, showing their development potential following emerging Asia.
The volume of total EMPE funds raised so far sends the market a positive signal that this year’s fund raising may be able to exceed last year’s, since the first quarter’s amount has already approached half of last year’s annual volume.
While the amount of fundraising increased, the scale of EMPE deals has also improved. Over the past three months, although there was only 199 deals closed, slightly declining from the 210 closed deals record set a year earlier, the total deal value has increased considerably by US$2 billion, to US$5.9 billion from 2010 Q1’s US$3.9 billion.
It is not hard to imagine that most EMPE investment will follow the fund flow and take place in emerging Asia as well. Investments of approximately US$4 billion were in emerging Asia during the first quarter, accounting for 66.7 percent of the total EMPE investment across different regions.
Interestingly, although having raised most of the funds, China was not the champion of EMPE investment attraction. Instead, investments in India doubled the investment volume in China, amounting to US$2.4 billion.
The lack of investment, in contrast with affluent fund storage, may indicate the immaturity of the Chinese PE market. The market, which saw its PE fundraising start to soar in 2005 and surpassed India as emerging Asia’s largest PE fund raiser in 2006, may want to note that despite its abundant cash flow, it needs to exploit more projects worth investing on.
PE investment, as a relatively new investment form to the Chinese, contributed 0.16 percent to the country’s GDP in 2010, much smaller than its contribution to developed markets, such as in the United Kingdom (1.13 percent) and the United States (0.9 percent).
This article about FDI in India and China, was written for 2point6billion.com, by Dezan Shira & Associates. Dezan Shira & Associates helps foreign companies do business in China and India.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- The 24-290 mm Paradox: Why a 12× Zoom from 2001 Still Outresolves Today’s 8K Sensors
- The Power of Ketosis: Unlocking Your Body’s Hidden Energy Source.
- Navy Veteran With Dementia Found Dead in Assisted Living Freezer!
- Fueling the Future: Why Ketosis Is the Key to Lasting Energy and Metabolic Health.
- The Genetic Stew
- Common challenges in IT modernization
- Naka Solutions Reviews: Innovation, Quality Service, and Trader Trust
- The Style Upgrade: Why Coretec Floors Outshine Traditional Vinyl
- Ketosis Unlocked: The Science Behind Your Body’s Natural Fat-Burning State.
- Luxury Morocco Shore Excursions: Discover Authentic Beauty in Comfort and Style
- The Silent Disruptor: Understanding How Thyroid Imbalance Affects Your Body.
- Fehmi Lights Inc. & Fehmi Lites Manufacturing Co. – Shaping the Future of Illumination
- Thyroid and Hormone Harmony: The Delicate Balance That Shapes Your Health.
- Discover Morocco with Face Tours: Authentic Journeys Across the Kingdom
- The Thyroid Connection: How This Small Gland Controls Big Changes in Your Body.
- Morocco: The Rising Star of African Tourism — A Journey Through Culture, Desert, and Hospitality
- The Hidden Power of the Thyroid: Why This Tiny Gland Shapes Your Entire Health.
- The Thyroid Explained: Understanding the Silent Regulator of Health.
- Local Guide for Giles County and Pulaski, TN Real Estate Market
- Warts and Your Health: Why Ignoring Them Can Lead to Bigger Problems.
- The Hidden Dangers of Excess Weight: Why Your Health Can’t Afford to Wait.
- Exercise is Medicine
- The 100 mm Paradox: Why the “Boring” Focal Length Is Quietly Becoming the Most Dangerous Tool on Set
- The Invisible Science Behind the "Natural" Look: How Modern Optics Quietly Rewrite Cinematic Language
- Sustainable Weight Loss Made Simple: Unlocking the Secrets of a Healthier You.
- Clear Skin Ahead: Understanding Warts and How to Remove Them Safely.
- Ask AI: The Revolutionary Domain That's Reshaping How We Access Intelligence
- The Story of the Illuminati and the Birth of a Modern Myth
- From Prototype To Mass Production: A Step‑By‑Step Guide For Launching Plastic Parts Via Injection Moulding
- From Concept To Operating Room: The Role Of CNC Machining In Developing Surgical Tools