《2022年亚太区私募股权市场报告》-48页_4mb

Asia-Pacific Private Equity Report 2022 Summary

Core Content

The Asia-Pacific Private Equity Report 2022 highlights a record-breaking year for private equity investments in the region in 2021, despite global challenges such as the ongoing effects of the Covid-19 pandemic and geopolitical tensions. The report outlines key trends in investment activity, sector performance, competition, and exits, while also addressing the growing importance of ESG (Environmental, Social, and Governance) factors and the outlook for 2022.

Main Points

Record Investment Activity in 2021

• Asia-Pacific private equity investments reached a record $296 billion in 2021, a 50% increase from 2020 and 82% above the previous five-year average.
• Greater China accounted for $128 billion, or 43% of total deal value, while India contributed $61 billion, or 20%, marking a significant shift from previous years where China's share was dominant.
• Japan, South Korea, and Southeast Asia also saw more than double their deal value compared to 2020.

Sector Performance

• The Internet and technology sector remained the top performer, contributing 48% of total deal value.
• Technology and advanced manufacturing and services together accounted for 62% of the region’s deal value.
• India saw a surge in tech investments, with its share of the market increasing due to rising digital penetration and a strong domestic IPO market.
• China's tech sector faced regulatory challenges, including restrictions on online gaming, for-profit tutoring, and data security, which led to a decline in tech stock prices and deal value in the second half of 2021.

Exit Market Recovery

• After two years of decline, exits rebounded strongly, reaching $172 billion, a 100% increase over 2020 and 54% above the previous five-year average.
• IPOs remained the most popular exit channel, making up 47% of total exits.
• However, China-based companies faced challenges in accessing the US IPO market, leading to a 50% drop in exit value in the second half of 2021.

Fund-Raising Trends

• Fund-raising for Asia-Pacific-focused private equity funds revived slightly in 2021, with $144 billion raised, up 7% from 2020 but still 50% below the 2017 peak.
• The average fund size increased to $304 million, up 62% from the previous year.
• Megafunds (over $1 billion) saw a 42% increase in value, and the number of such funds rose by 8%.

Competition and Deal Multiples

• The number of active investors in the region increased by 39%, reaching over 3,200.
• The top 20 funds accounted for one-third of the deal value, indicating a concentration of activity among large firms.
• Deal multiples (EV/EBITDA) rose to 13.2, up from 10.6 in 2019, driven by high valuations, limited deal supply, and global liquidity.

ESG Integration

• ESG has become a core investment factor, with 57% of Asia-Pacific GPs planning to significantly increase their focus on sustainability and ESG in the next 3 to 5 years.
• Decarbonization and clean technology investments saw substantial growth, with clean tech investments rising by 230% in 2021.
• Operational due diligence and integrated value creation plans are now essential for investors to identify and capitalize on ESG opportunities.

Key Information

Regional Performance

• India grew faster than China in 2021, with a 47% increase in deal value.
• South Korea and Japan saw significant growth, with deal values more than doubling.
• Southeast Asia experienced a 143% increase in deal value, driven by five megadeals.

Exit Trends

• Trade and secondary sales became more prominent as IPOs faced limitations.
• China's exit value fell sharply in the second half of 2021 due to the US IPO restrictions and weak domestic markets.

Outlook for 2022

• Despite a strong 2021, caution is advised for 2022 due to Covid-19 resurgence, Russia's invasion of Ukraine, and geopolitical tensions.
• China's private equity market may slow down due to economic concerns and regulatory pressures.
• India is expected to benefit from the shift of investment away from China.
• ESG and sustainability are expected to play a more prominent role in future investment strategies.

Investment Climate

• 60% of Asia-Pacific GPs remain confident about the region's macroeconomic outlook for 2022.
• 35% of China GPs are less optimistic, signaling a potential shift in performance.
• The average buyout deal size increased by 78% to $570 million, while the average growth deal rose by 12% to $106 million.

Challenges

• High valuations remain a concern, with 72% of GPs citing this as a major issue.
• Regulatory changes and geopolitical factors are expected to continue influencing the investment landscape.

Conclusion

The Asia-Pacific private equity market demonstrated resilience in 2021, achieving record investment and exit values. However, the outlook for 2022 remains cautious due to macroeconomic and geopolitical uncertainties. The Internet and technology sector continues to dominate deal activity, while ESG and sustainability are becoming increasingly central to investment strategies. As the market evolves, GPs must adapt to changing regulatory environments, increased competition, and the need for integrated due diligence and value creation plans to ensure long-term success.