Data from Private Equity International's Research & Analytics division revealed that $80.38 billion has been raised from 252 China specific funds between 2011 to Q3 2014.
Fundraising for these funds was at an all-time high in 2011, with capital being allocated from some of the largest institutional investors, such as AP Fonden 2, Texas County and District Retirement System, and UBS Global Asset Management. Taoshi Energy Equity Investment Fund I, Hony Fund V and Primavera Capital Fund I (Chunhua Fund I) were the largest funds to close in the year securing $3.26 billion, $2.4 billion and $2 billion respectively.
Fundraising decreased by 80 percent between 2012 and 2013. Our 2014 LP Perspectives Study pointed out that a slowdown in the Chinese economy was the second most macroeconomic concern for them. Some family offices that we spoke to mentioned that it had become increasingly difficult to make good returns in China too.
Fundraising in the first three months of 2014 however, has already surpassed 2013's total of $4.9 billion, which tells us that fears over China’s economy are beginning to fade amongst private equity investors.