Emerging Asia

Please find below a sampling of some of the latest EMPEA statistics, programs and content covering information on Emerging Asia. For a more comprehensive listing, please search “Asia” and customizable criteria in Advanced Search. Scroll down for additional data and resources.

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Data Insight

Emerging Asia Data Insight (Q1 2017) Fundraising in Emerging Asia in Q1-Q3 2016 reached its lowest level since 2010, falling 27%, year-on-year. Much of this decline stems from a sharp drop in capital raised for pan-Asia funds—down to US$1.9 billion in the first three quarters of 2016, compared to US$14 billion in 2015–with many large regional funds having closed in prior years. Similarly, capital invested in the region has continued to decline since 2014. China especially has faced a striking slowdown in investment: capital deployed decreased 55%, year-on-year. Furthermore, with nearly half of deals in Emerging Asia taking place in China, the country’s decline in investments in Q1-Q3 2016 accounted for over twothirds of the total deal count decline in the region.  Source: EMPEA, 2017

Emerging Asia Fundraising and Investment Statistics

Source: EMPEA
Fundraising (US$m) Investment (US$m)
Q3 2016 17,000 16,000
2015 33,000 25,000
2014 34,000 29,000
2013 29,000 18,000
2012 28,000 16,000
2011 34,000 20,000

EMPEA’s Industry Partners Active in Emerging Asia

  • Asian Venture Philanthropy Network (AVPN)
  • Aspen Network for Development Entrepreneurs (ANDE)
  • Australian Private Equity & Venture Capital Association Ltd. (AVCAL)
  • Center for International Private Enterprise (CIPE)
  • China Venture Capital Association (CVCA)
  • The Commonwealth (CommSec)
  • Convergence
  • Hong Kong Venture Capital & Private Equity Association (HKVCA)
  • Indian Private Equity & Venture Capital Association (IVCA)
  • Initiative for Global Development (IGD)
  • Institutional Limited Partners Association (ILPA)
  • Institute for Private Capital (IPC)
  • Korean Venture Capital Association (KVCA)
  • Malaysian Venture Capital & Private Equity Association (MVCA)
  • Principles for Responsible Investment (PRI)
  • Singapore Venture Capital & Private Equity Association (SVCA)
  • SME Finance Forum (SMEFF)
  • Association Tunisienne des Investisseurs en Capital (ATIC)
  • The United Nations Office for Project Services (UNOPS)

Learn more about EMPEA’s Industry Partner Network »

Additional Resources

Private Equity Through Debt: Opportunities for Private Equity in India
There appears to be a recent trend in Indian PE circles with increasing number of PE players raising (or planning to raise) offshore funds which are able to invest in rupee denominated non-convertible debt in India (“NCDs”) along with equity. What is this reason for this? With Indian equity markets looking up, is this a value proposition of the past or does PE investment through NCDs still hold some sheen?

This note highlights some of the reasons why PE investment through NCDs has caught the fancy in recent quarters and opportunities that this route presents going forward. Source: EMPEA 2015.

India’s New Corporate Law: Challenges in Structuring Private Equity Investments
India’s corporate laws and exchange control regulations have been notoriously cumbersome in two areas critical to private equity and venture capital investments in Indian companies: capital structuring and distribution of profits. In April of this year, India’s Ministry of Corporate Affairs published rules (the “Rules”) to implement the Companies Act of 2013 (the “new law”), which have made a bad problem worse. Source: EMPEA 2014.

Investing in Indonesia: Recent Developments
Indonesia is a pivotal nation in South East Asia, abundant in natural resources and having a population of approximately 253 million people, making it the world’s fourth most populous nation. Due to its strengthening economic and political progress, Indonesia now represents one of Asia’s best potential growth opportunities in the eyes of many investors. International investors can invest in and/or establish a presence in Indonesia through various structures. Source: EMPEA, 2014

Inside Perspectives: An Interview with Yichen Zhang of CITIC Capital
Yichen Zhang is the Chairman and Chief Executive Officer of CITIC Capital, an alternative investment management and advisory company with over US$4.5 billion of assets under management across private equity, venture capital and real estate. Yichen Zhang reflects on the history of private equity in China and shares his perspectives on what he sees as some of the biggest challenges and opportunities facing the industry. Source: EMPEA, 2014.

The State of Indian Private Equity: An Interview with Srinivas Chidambaram of Jacob Ballas Capital
Srinivas Chidambaram is the Managing Director and Chief Executive Officer of Jacob Ballas Capital India, an India-focused growth capital private equity firm with over US$600 million in assets under management. Srinivas Chidambaram reflects on the maturation of private equity in India and shares his thoughts on how the country’s much-anticipated general elections will influence the industry. Source: EMPEA 2014.

Pre-empting Fraud: Understanding the mindset of the Chinese entrepreneur
Although China remains an attractive destination for private equity investors, it has gained a reputation as a market where contracts are often treated more like vague notions than bona fide agreements. Kroll commissioned the Economist Intelligence Unit to carry out the Annual Global Fraud Survey, which found that fraud continues to be pervasive in China, with 67% of senior executives based in China reporting they were affected by fraud in 2012 – 2013. The study also found the average percentage of revenue lost to fraud across industries in China rose 50% from 0.8% in 2011-2012 to 1.2% in 2012-2013. Source: EMPEA 2014.

Keynote Address: Robert W. van Zwieten, EMPEA – CAPE Conference 2013, Beijing
EMPEA President and CEO, Robert W. van Zwieten addressed the annual CAPE Conference in Beijing on 1 December 2013. In his keynote address, Mr. van Zwieten discussed the current state of the Chinese market and institutional investor sentiment, the critical importance of private equity to the country’s economy, and the current state of the Chinese regulatory and tax landscape. Source: EMPEA, 2013.

India Regulatory Update
The Indian economy has been famously dubbed the elephant economy. Lately, the fabled elephant has unfortunately been bogged down by shackles. Criticism from the investor community suggests that India’s legal and regulatory systems have not kept pace with business and the requirements of an increasingly globalized economy. In response, the Government has recently taken significant steps to seek to remedy this situation. These recent developments should help in building investor confidence and are discussed in greater detail inside. Source: EMPEA, 2014.

Inside Perspectives: An Interview with Khalid Quadir of Brummer & Partners (Bangladesh)
Khalid Quadir is Chief Executive Officer and Founding Partner of Brummer & Partners (Bangladesh), which manages the Bangladesh-focused Frontier Fund. Khalid makes the case for investing in Bangladesh via private equity and highlights some of the unique challenges to being a first mover in this market. Brummer & Partners AB is a leading hedge fund group based in Sweden with US$15 billion in global assets under management. Source: EMPEA 2013.

Inside Perspectives: An Interview with Archana Hingorani of IL&FS
Archana Hingorani, Chief Executive Officer and Executive Director of IL&FS Investment Managers, shares her perspectives on the key challenges currently facing the private equity industry in India and offers guidance on strategies for success in this new investment climate. IL&FS Investment Managers Limited (IIML) is one of the oldest and largest private equity fund managers in India, with over US$3.2 billion in assets under management. Source: EMPEA 2013.

Identifying and Mitigating Risks in Southeast Asian Investments
With U.S. GDP growth projected at a sluggish 2% for 2013 and the Eurozone struggling to gain growth at all, it is no wonder that developing Asian markets are attracting so much investor interest. In fact, while China is projected to achieve 8% growth next year, Southeast Asia is expected to post GDP growth of 7%. Join EMPEA and Kroll Advisory Solutions for a Professional Development Webcast exploring the nuances of four Southeast Asian countries: Indonesia, Thailand, Vietnam and Myanmar.

Investment Adviser Regulations: A New Regime in India
On the 21 January 2013, the Securities and Exchange Board of India (“SEBI”) released the final SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”). Investment advisers were previously unregulated in India. With the enactment of the IA Regulations, SEBI has finally sought to plug this gap. Source: AZB & Partners, 2013

Asian LP Sentiment Toward Private Equity
In the current economic environment, competition for capital is fierce and GPs must increasingly look for new funding sources to complement their traditional investor base. This report takes another step toward providing a greater understanding of the pools of capital outside of North America and Western Europe that may potentially be available for EM PE investment. Source: EMPEA 2012

Impact Case Study: KPR Mill Limited (India)
In 2006, KPR’s leadership had ambitious plans for expanding the 22-year old company, but knew they would need to look beyond internally generated funds and debt financing to achieve their goals. After learning of the private equity model as a viable alternative to an IPO, KPR partnered with Blue River Capital, a Mumbai-based private equity firm that was actively looking for investments in India’s textiles sector.

Impact Case Study: United Envirotech Limited (UEL)
Founded in 2001 to help meet China’s water needs, UEL grew over the next decade to become a market leader in China’s wastewater industry. Despite its success, UEL saw the need for new financing and a new managerial platform to maintain its high level of growth, and it turned to global investment firm KKR for help. Through the partnership, KKR helped to accelerate UEL’s growth rate, secure the long-term debt financing necessary to support its expansion, and build a managerial platform for rapid growth.

Alternative Investment Funds Regulation in India: A Changed Regulatory Landscape
The notification of the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) on May 21, 2012, marked a watershed moment for the Indian private capital industry. A story that began in the mid 1980’s by Indian financial institutions like ICICI and IFCI has now culminated into a 200–300 fund-strong industry. The provision of a comprehensive, robust regulatory framework is a natural consequence for an industry that has grown admirably, and has played a significant part in the India growth story. Source: AZB & Partners, 2012.