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.

 
Caishen.Co - Primary Data for China Secondary Investment and Stock Markets

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