Asia-Pacific Private Equity Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Asia-Pacific Private Equity Market is segmented by Investment (Real Estate, Private Investment in Public Equity (PIPE), Buyouts, and Exits), and by Country (China, India, Japan, Australia, Singapore, Hong Kong, and Other Countries).

Market Snapshot

Asia-Pacific Private Equity Market Overview
Study Period: 2018-2027
Base Year: 2021
CAGR: <5 %
Asia-Pacific Private Equity Market Major Players

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Market Overview

Private equity investors in Asia-Pacific were expecting a difficult year in 2020. In 2019, the region saw a dramatic drop in deal value, exits, and fund-raising after two years of record investment. Then Covid-19 appeared. Investors were taken aback by the impact at first. However, many investors rapidly returned to the market, particularly in China, India, and Japan, pushing deal value across the region to new highs.

In Asia-Pacific, private equity brings together one of the most effective investment methods — professionally managed buyout funds — with the world's fastest-growing region. Over the last decade, the Asia-Pacific private equity business has more than doubled in size, and there is still plenty of space for expansion. In the next two decades, Asia will account for more than half of global GDP. Asian economies represent the key global growth patterns. The world's demographic and technical tailwinds are stronger in Asia, from the growth of a new middle class to the widespread adoption of digital services.

Due to rising deal-making, Asia-Pacific assets under management now account for 28% of the global PE market. Returns remained solid, as private equity beat public markets in the region. Exit deal value was USD 70 billion, down 24% year over year and 40% from the previous five-year average, as private equity firms waited for better opportunities to sell their portfolio companies. The route of initial public offerings, on the other hand, was a bright spot. IPOs dominated the exit market, accounting for about 60% of all exits by value, nearly double the five-year average. China accounted for 86% of the region’s IPOs and the majority were healthcare and technology companies. Fundraising slowed in 2020, overshadowed by a poor exit environment. Funds focused on Asia-Pacific raised USD 90 billion, down by 32% year-on-year, 53% from the prior five-year average.

Scope of the Report

This report aims to provide a detailed analysis of the Asia-Pacific private equity market. Furthermore, it provides an overview of market dynamics, emerging trends in the segments and regional markets, and insights into various product and application types. Moreover, it provides an analysis of the portfolio of key players, along with the competitive landscape in the Asia-Pacific private equity market. The market is segmented by Investment (Real Estate, Private Investment in Public Equity (PIPE), Buyouts, and Exits), and by Country (China, India, Australia, Singapore, Hong Kong, and Other Countries).

By Investment
Real Estate
Private Investment in Public Equity (PIPE)
Buyouts
Exits
By Country
China
India
Japan
Singapore
Hong Kong
Other Countries

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Key Market Trends

Deals Made a Remarkable Rebound in Asia-Pacific Private Equity Market

In 2020, deal-making was the bright point, reaching a new high of USD 185 billion. Following a brief pause in the first quarter, activity increased, particularly in China and India. As a result of this active deal-making, Asia-Pacific assets under management now account for 28% of the global PE market.

China's total deal value increased to USD 97 billion in 2019, up 42% from the previous year and 22% more than the five-year average. Meanwhile, India's share of deal activity in the area has increased. The total deal value increased by 64% over the previous five years to USD 38 billion. The growth came partly from an extraordinary series of 10 private equity investments totalling almost $10 billion in technology multinational Jio Platforms, and seven investments in Reliance Retail.

While deal value grew in Japan and Australia–New Zealand from the previous five-year averages, South Korea's deal activity was on par with previous years. Travel restrictions affected deal activity significantly in Southeast Asia, where deal value declined 16% over the previous five-year average.

Throughout the region, investors are targeting fast-growing companies with digital business models and platforms that were boosted by the switch to virtual work, education, and retailing. These digitally accelerated sectors include e-commerce, e-learning, digital healthcare, online booking services, online entertainment, and digital payments and financial services.

Asia-Pacific Private Equity Market Analysis

Asia-Pacific’s Internet and Tech Surge

For nearly a decade, investors have been pouring money into Asia-developing Pacific's Internet and technology sector. The internet economy in Southeast Asia alone was worth over $100 billion in 2019 and is anticipated to triple in size by 2025. The digital economy in Indonesia and Vietnam is growing at a rate of above 40% on an annualized basis. Digital payments, e-commerce, and ride-hailing are among the sectors driving rapid development and fueling the rise of "super apps" like Grab, which follows Tencent's WeChat and Alibaba's ubiquity in China across payments and online retail. The digital transformation and value of technology investments at long-standing Asian corporates, particularly the family- or state-owned conglomerates that dominate much of the region, is a big opportunity for private equity funds in this area. The promise in this field is demonstrated by Facebook's recent investment in Jio, India's largest telecoms network. Within 3 years of its launch, Jio, a subsidiary of Reliance Industries, India's largest public corporation, had amassed the greatest customer base of any Indian telecom. That breakthrough is only one illustration of how corporate Asia is undergoing a massive digital transformation. To capitalize on these dynamics, private equity funds in Asia-Pacific have a growing focus on technologies including software as a service (SaaS), other B2B online services and e-commerce.

Asia-Pacific Private Equity Market Forecast

Competitive Landscape

The report provides an overview of the major players in the Asia - Pacific private equity market, which is fragmented. Some of the major players in the market are Carlyle, Blackstone, The Everstone Group, KKR, Nippon Sangyo Suishin Kiko Ltd., Bain Capital, Warburg Pincus, J-Star, Ascent Capital, CVC Capital Partners, and others.

Recent Developments

July 2021 - US private equity firm KKR has signed definitive agreements to acquire Global Infrastructure Partners (GIP) entire stake in Highway Concessions One (HC1) and seven highway assets with a total length of 487 kilometres. HC1 is a platform that manages GIP’s India road portfolio which spans across seven states.

July 2021 - Asia merger and acquisition bonanza fueled by Southeast Asia, private equity deals. ASIAN merger and acquisition activity surged to its second-highest level ever for the first half of 2021 as Southeast Asian and private equity deals hit records, and bankers expect the strong momentum to be maintained for the rest of the year.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Study Deliverables

    2. 2.2 Study Assumptions

    3. 2.3 Analysis Methodology

    4. 2.4 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS AND DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Porter's Five Forces Analysis

    5. 4.5 Imapct of Covid-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Investment

      1. 5.1.1 Real Estate

      2. 5.1.2 Private Investment in Public Equity (PIPE)

      3. 5.1.3 Buyouts

      4. 5.1.4 Exits

    2. 5.2 By Country

      1. 5.2.1 China

      2. 5.2.2 India

      3. 5.2.3 Japan

      4. 5.2.4 Singapore

      5. 5.2.5 Hong Kong

      6. 5.2.6 Other Countries

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Mergers and Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 Carlyle

      2. 6.3.2 Blackstone

      3. 6.3.3 The Everstone Group

      4. 6.3.4 KKR

      5. 6.3.5 Nippon Sangyo Suishin Kiko Ltd.

      6. 6.3.6 Bain Capital

      7. 6.3.7 Warburg Pincus

      8. 6.3.8 J-Star

      9. 6.3.9 Ascent Capital

      10. 6.3.10 CVC Capital Partners*

    4. *List Not Exhaustive
  7. 7. FUTURE GROWTH PROSPECTS OF THE MARKET

  8. 8. DISCLAIMER

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Frequently Asked Questions

The Asia-Pacific Private Equity Market market is studied from 2018 - 2027.

The Asia-Pacific Private Equity Market is growing at a CAGR of <5% over the next 5 years.

KKR, Carlyle, The Everstone Group, Blackstone, Bain Capital are the major companies operating in Asia-Pacific Private Equity Market.

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