Chinese Private Equity Outperforms Asian Benchmark Returns

Despite economic slowdown and the suspension of China’s IPO market, Chinese private equity firms continue to outperform Asia’s overall benchmark returns by a substantial margin, according to a report by the Centre for Asia Private Equity Research Ltd.

As of June 2013, Chinese private equity firms scored gross internal rate of return (IRR) of 16.5%, compared with Asian benchmark return of 10.3%.

The gross IRRs are calculated based on deals completed in the 10-year period between 2002 and 2011, with value calculated up to June, 2013.

The report also discloses that a total of US$147.6 billion has been returned to limited partners (LPs) for deals that were completed in the same period, out of the US$202.8 billion of equity capital being deployed.

During the second quarter of 2013, Southeast Asia returned US$1.7 billion back to LPs, the second largest amount after China.

Australia is the worst performing market in the region because of an excessive debt burden accumulated during the boom years.

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