2018-中国创投暨私募股权投资市场2012年全年数据回顾——英文版_50页_1mb

China VC/PE Market Review (2012)

Overview

The Chinese VC/PE market in 2012 experienced significant changes in fundraising, investment activity, and exit options. The market was shaped by a series of policy developments over the past decade, which facilitated the growth of VC/PE sectors. Despite a decline in fundraising and investment, the market maintained a certain level of activity, with M&A and trade sales becoming more prominent due to the challenges of IPOs.

VC Market in 2012

• Fundraising:

  • A total of 252 VC funds were closed in 2012, a decrease of 34.0% YoY.
  • 247 funds disclosed a total of US$9.31B in new capital, a drop of 67.0% YoY.
  • RMB funds dominated the market, accounting for 93.7% of the total number of funds and 74.5% of the total fundraising amount.
  • The average fundraising size of RMB funds was US$29.91M, while foreign currency funds averaged US$158.00M, which is 5.29 times higher.

• Investments:

  • 1,071 investment deals were completed in 2012, a decrease of 28.8% YoY.
  • The total investment amount was US$7.32B, down 43.7% YoY.
  • Despite the decline, the VC market showed growing momentum compared to previous years.
  • The Machinery Manufacturing sector was the top recipient of VC investments in terms of the number of deals, while the Internet sector led in investment amount.

• Investment Stage:

  • Early-stage investments accounted for nearly 30.0% of all VC deals.
  • The majority of investments were small-sized, with over 80.0% of deals below US$10.00M.

• Exit Options:

  • M&A and trade sales became more common due to the difficulties in IPOs.
  • A total of 246 exits were recorded in 2012, with M&A and trade sales taking a larger share.

PE Market in 2012

• Fundraising:

  • 369 new PE funds were closed in 2012, a decrease of 57.0% YoY.
  • 359 funds disclosed a combined fundraising amount of US$25.31B, a drop of 34.9% YoY.
  • RMB funds accounted for 354 of the 369 new PE funds, far outnumbering foreign currency funds (15).
  • The average fundraising size of RMB funds was significantly lower than that of foreign currency funds.

• Investments:

  • 680 investment deals were closed in 2012, with a combined investment amount of US$19.79B, down 28.3% YoY.
  • PE investments remained at a high level in terms of the number of deals.
  • Real Estate and PE-backed investments in other sectors saw notable activity.

• Industry Breakdown:

  • Real Estate was the top industry for PE investments in terms of the number of funds closed.
  • The Internet sector led in investment amount, while Energy & Mineral and Machinery Manufacturing followed closely.

• Geographical Distribution:

  • Beijing ranked first in both the number of PE deals and investment amount.
  • Zhejiang led in investment amount, while other regions showed varied performance.

• Exit Options:

  • PE exits increased in 2012, with a greater share of M&A and trade sales.
  • IPO exits accounted for 70.0% of total exits, showing a decline compared to previous years.

M&A Market in 2012

• Activity:

  • The number and transaction value of M&A deals declined slightly YoY.
  • Domestic M&A remained brisk, while cross-border M&A had higher transaction values.

• Industry Breakdown:

  • Energy & Mineral and Machinery Manufacturing led in the number of deals.
  • Real Estate and Internet were also prominent, with significant investment amounts.

• Geographical Distribution:

  • Beijing led in the number of M&A deals, while Zhejiang was the top region in terms of investment amount.

Chinese IPOs in 2012

• Total IPOs:

  • 425 IPOs were registered globally in 2012, with Chinese enterprises accounting for 47.3% of the total.
  • 2012 saw a continuous decline in the number and financing amount of VC/PE-backed IPOs.

• Domestic IPOs:

  • ChiNext was the primary venue for domestic IPOs, accounting for nearly 50% of all VC/PE-backed IPOs.
  • Machinery Manufacturing led in the number of domestic IPOs, with a total of 34.

• Overseas IPOs:

  • The number of overseas IPOs decreased, with the Hong Kong Stock Exchange (HKMB) being the main venue.
  • The average book-value ROI for domestic IPOs was significantly higher than for overseas IPOs, with ChiNext showing the highest ROI.

• Industry Distribution:

  • Finance and Machinery Manufacturing were the top industries for IPOs, both in terms of financing amount and number of deals.
  • The average financing amount per IPO was US$107.04M, with Finance leading in this category.

VC/PE Market Highlights in 2012

• LP Market Growth:

  • The number of limited partners (LPs) in China’s VC/PE market continued to grow.
  • As of the end of 2012, there were 7,511 LPs, with a total investable amount of US$807.34B.
  • Institutional LPs, particularly Public Pension Funds, became more active, accounting for 26.3% of the total investable amount.

• Investment Trends:

  • The market showed a trend toward smaller investment sizes, with a significant portion of deals being small.
  • Real Estate and PIPE (Private Investment in Public Equity) were notable investment strategies.

• Policy Impact:

  • The market was influenced by a range of policies over the years, which shaped the development of VC/PE activities and exit options.

• Market Challenges:

  • IPOs faced difficulties, leading to a shift in focus toward M&A and trade sales.
  • The overall market activity remained resilient despite the challenges.