China PE returns down in Q1

China-based private equity fund returns were lagging in Q1 2012, with emerging markets returns also down year-on-year, according to a report from Cambridge Associates.

China-based private equity firms (including venture capital) produced returns of just 3.6 percent in US dollar terms during the first quarter of 2012, according to figures released by investment advisory and research firm Cambridge Associates. 

Except for Brazil, China funds were the worst-performing among the BRIC economies.

India, by comparison, was second best among the BRICs, with private equity firms showing returns of 11.8 percent. Russia was the best-performer, with funds returning 18 percent during the quarter. 

As a whole, emerging markets private equity returns were down during the 12 months to 31 March 2012 to 1.8 percent. For the trailing three years, the return figure was 21.6 percent.

China and India made up 54 percent of Cambridge Associates’ emerging markets index.

Emerging markets funds with a 2005 vintage year returned $700 million back to their investors in Q1 or 41 percent of total capital returns for that quarter. In both emerging markets and developed markets, 2005 vintage year funds proved to be the best-performing.