2018-《中国创投暨私募股权投资市场2011年第三季度数据回顾》--英文版_57页_2mb

China VC/PE Market Summary Q1-Q3 2011

Core Content Overview

The China VC/PE Market Review Q1-Q3 2011 provides an in-depth analysis of the venture capital (VC) and private equity (PE) markets, along with M&A and IPO activities, during the first nine months of 2011. The report highlights the overall growth and development of the market, with a focus on fundraising, investment trends, and exit activities.

Main Points

1. VC Market Overview (Q1-Q3 2011)

• Fundraising: A total of 136 VC funds were raised by both foreign and domestic institutions, with 63 raised in Q3 alone, which is an all-time high.
• Total Capital Raised: The total capital raised in Q1-Q3 2011 reached US$11.61B, surpassing the full year of 2010.
• RMB Funds Dominance: RMB-denominated VC funds experienced a fundraising boom, driven by the development of domestic limited partners (LPs) and favorable policies for foreign institutions.
• Investment Activity: A total of 925 investment deals were made, with the total investment amount reaching US$9.45B, significantly higher than the full year 2010's US$5.39B.
• Investment Distribution by Currency:
  • RMB funds: 648 deals, US$8.54B
  • USD funds: 277 deals, US$909.85M
• Investment Stage:
  • Expansion-stage investments accounted for 60% of all deals.
  • Early-stage investments made up 30% of the total.
• Investment Scale:
  • Deals sized US$10M–100M accounted for over 30% of the total number of deals.
• Industry Focus:
  • Internet and Clean-tech received significant attention, with the internet sector being a major focus in both deal numbers and investment amounts.
• Geographical Distribution:
  • Beijing was the top region for both the number of deals and investment amounts.

2. PE Market Overview (Q1-Q3 2011)

• Fundraising: A total of 116 new PE funds were raised, with 61 of them completed in Q3, showing a significant increase.
• Total Capital Raised: The total capital raised in Q1-Q3 2011 was US$12.29B, with an average of US$129.31M per fund, a mild decline from the previous year.
• Foreign Currency Funds: The fundraising of foreign currency funds increased, with 21 funds raised, totaling US$11.80B.
• Investment Activity: PE funds made 331 investments, surpassing the full year of 2010.
• Investment Distribution by Currency:
  • RMB funds: 254 deals, US$10.29B
  • USD funds: 77 deals, US$1.00B
• Investment Type:
  • Growth funds were the most dominant, accounting for the majority of deals.
  • Real Estate and Energy & Mineral sectors saw rapid growth in investment deals.
• Geographical Distribution:
  • Beijing remained the top region for PE investments, followed by Jiangsu.

3. M&A Market Overview (Q1-Q3 2011)

• Total Deals: A total of 763 M&A deals were recorded, surpassing the full year 2010.
• Transaction Value: The total transaction value reached US$38.12B, indicating a robust M&A environment.
• Domestic vs. Cross-border:
  • Domestic M&A accounted for 681 deals, representing 91.2% of the total.
  • Cross-border M&A saw a notable increase, with 116 deals.
• Industry Breakdown:
  • Real Estate and Energy & Mineral sectors were the top two in terms of deal numbers.
  • Energy & Mineral was the most valuable sector, with US$12.74B in transactions.
• VC/PE-backed M&A: A total of 152 M&A deals were made by VC/PE-backed enterprises, with Clean-tech and Internet sectors receiving significant attention.

4. IPO Market Overview (Q1-Q3 2011)

• Total IPOs: 467 enterprises were listed, with 61% being Chinese enterprises.
• Domestic IPOs: 233 IPOs were completed, with the majority concentrated in the ChiNext market.
• Industry Breakdown:
  • Machinery Manufacturing was the largest sector in terms of both financing amount and number of IPOs.
  • Chemical Raw Materials & Processing, Clean-tech, and Automobiles also saw substantial activity.
• Overseas IPOs: 56 enterprises listed overseas, with US$10.99B raised, primarily in the NYSE and NASDAQ.
• Performance:
  • Domestic IPOs had an average ROI of 7.53X.
  • Overseas IPOs had an average ROI of 5.87X, with NYSE being the most profitable.

5. Market Trends and Insights

• VC/PE Fundraising Boom: The market witnessed a surge in fundraising, driven by both domestic and foreign institutions.
• VC/PE-backed IPOs: Despite the overall growth, VC/PE-backed IPOs saw a slowdown, possibly due to the Europe & U.S. debt crisis, China concept stock turmoil, and VIE issues.
• Fund Strategy Shifts: There was a notable shift towards industrialization, with several large-scale funds targeting specific industries such as healthcare, aviation, and cultural industries.
• Geographical Concentration: Both VC and PE investments were heavily concentrated in Beijing, Jiangsu, and other major cities.
• Exit Activities: Exits were brisk, with IPOs and private equity buyouts being the primary exit channels.

Key Information

• VC Fundraising: Total of 136 funds raised, 63 in Q3.
• VC Investment Deals: 925 deals, US$9.45B in total investment.
• PE Fundraising: 116 funds raised, 61 in Q3.
• PE Investment Deals: 331 deals, US$38.12B in total investment.
• IPOs: 467 total, 233 domestic, 56 overseas, with US$35.17B raised domestically and US$10.99B overseas.
• Top Sectors:
  • VC: Internet, Clean-tech, Bio/Healthcare
  • PE: Real Estate, Energy & Mineral, Growth Capital
• Top Regions: Beijing and Jiangsu led in both investment deals and capital invested.
• Exit Trends: IPOs and private equity buyouts were the most common exit options, with Construction/Engineering and Energy & Mineral sectors seeing the most exits.

Summary

The VC/PE market in China experienced a significant growth in Q1-Q3 2011, marked by a record number of fundraising activities, investment deals, and IPOs. RMB funds led the fundraising trend, while VC and PE investments were heavily concentrated in sectors such as Internet, Clean-tech, and Energy & Mineral. The Beijing region dominated both fundraising and investment activity. Despite the overall growth, VC/PE-backed IPOs faced challenges due to international market conditions. The market showed a strong shift towards industrialization, with large-scale funds targeting specific sectors and regions. The IPO market saw a concentration in the ChiNext market, with Machinery Manufacturing and Chemical Raw Materials & Processing being the top sectors. The average ROI for domestic IPOs was 7.53X, while for overseas IPOs it was 5.87X, with the NYSE offering the highest returns.