Asia PE market scores record year in 2005

2005 has been hailed as the best ever in Asian private equity, according to a new survey.

Over $17.2 billion (€14.2 billion) was raised in the Asia Pacific region through 82 private equity funds in 2005, significantly up on the $6.5 billion raised in 2004, according to a survey by the Centre for Asia Private Equity Research.

It was also the highest figure since records were first kept by the Hong Kong-based organisation in 1989.
 
Investors committed over $15.2 billion last year, a 30% increase from 2004, and again the highest amount on record. Over $25 billion was returned to investors for an invested capital of $5.9 billion.  
 
The region also saw an increase in realisations, with a record 188 divestments for the full year. IPOs proved to be the most favoured exit route, accounting for 50.53 percent of the total.
 
“2005 was a great year for private equity in the Asia Pacific region. Many of the high profile deals will have made admirable returns and we were really encouraged by the development of these exits across the region,” Jamie Paton, managing director, Hong Kong and head of North Asia at 3i Asia Pacific, told PEO. 
 
Paton’s view is shared by many across the Asian private equity market, a space that drew, in 2005, new heavyweight entrants like KKR and Blackstone Group.
 
Total buyouts in Asia Pacific more than doubled to $22.3 billion in 2005, from $10.4 billion in 2004, Paton added, citing data by mergermarket. According to mergermarket’s data, exits rose to $14.1 billion in 2005 from $9.6 billion in 2004, while secondary buyouts also doubled at $1.65 billion.