Study: Asian fundraising remains strong

Private equity funds investing in Asia raised around $58bn in the first 11 months of 2008, 63% more than in the whole of 2007.

In the first 11 months of 2008, a total of $58.1 billion was raised by 48 private equity funds targeting Asian markets, a study has revealed, a 63 percent increase over the amount raised in the whole of 2007. The study does not account for venture capital funds raised in the period.

While the amount raised has increased 63 percent from $35.6 billion last year to $58.1 billion in the first 11 months of this year, the total number of funds targeting Asia has declined from 64 to 48, according to the Zero2IPO Research Centre, which provides private equity research solutions.

These figures include funds raised for real estate investments as well. In the first 11 months of this year, six real estate funds focused on Asian markets raised about $5.5 billion.

Growth capital funds were dominant in terms of number of funds and the total amount of capital raised. From January to November 2008, 35 growth funds attracted around $37 billion for the Asian markets. Capital raised by growth funds grew my more than three times as compared to 2007.

In keeping with the private equity trend around most of Asia, buyout funds were less popular. In the first 11 months of this year five buyout funds investing in Asia raised $14.5 billion, accounting for a quarter of the total capital raised. In the same period, two mezzanine funds raised $1.1 billion.

Another report released by Zero2IPO Research sheds light on the growing prominence of RMB-denominated funds in Chinese venture capital. In the first 11 months of 2008, a total of 110 venture capital funds were raised for investments in China, of which 80 percent were denominated in the local currency. However, in terms of capital raised, RMB-denominated funds contributed a modest 33 percent of the total amount raised for venture capital investments.

China also saw 503 venture deals in the same period, the first time that more than 500 venture investments have been made in a year in the country.