Asian Private Equity Performance Declines

The global economic malaise continues to weight on private equity funds’ ability to generate attractive returns and achieve liquidity.

As of the end of March, the benchmark gross returns for Asian private equity industry stood at 11.5%, down from 11.8% as of the end of December last year, according to the Centre for Asia Private Equity Research.

For a ten-year period, capital returned to limited partners has also declined. From 2002 to 2011, 2,029 exit deals returned US$138.7 billion back to limited partners, compared with 2,086 exit deals returning US$141.2 billion between 2001 to 2010.

The exit deals exclude those of RMB funds.

It now takes over 40 months for limited partners to get their investment fully realized, when looking at the ten-year period between 2002 and 2011.

It takes 48 months for Japanese funds to fully return capital back to limited partners, the longest in the Asian region.

For China, it takes 47 months.