buyout, PIPE and venture capital strategies. Larger funds and deals reflect the maturity of the private capital market i
Emerging Asia Data Insight 1H 2017 Kevin R. Horvath
KKR Asian Fund III closed with US$9.3 billion in capital commitments in June 2017, only months after its US$5.8 billion first close in March. The fund accounted for 56% of the US$17 billion raised for Emerging Asia in 1H 2017 and is the largest fund raised for emerging markets on record. The monumental fund close was not the only milestone reached in the region this year; GPs also deployed US$15 billion in the first half of 2017, the highest half-year total on record. While the number of investments completed were on par with previous half-year totals, large deals dominated the investment landscape, especially in China and South Korea. Overall, GPs completed 13 deals exceeding US$300 million in size across growth, buyout, PIPE and venture capital strategies. Larger funds and deals reflect the maturity of the private capital market in Emerging Asia, but development is concentrated in China, India and South Korea. Conversely, GPs deployed only US$896 million in Southeast Asia, a 51% year-on-year decrease. This dip reflects an inconsistency in investor outlook for Southeast Asia, in part due to the struggle to convey a compelling regional story tying together its diverse markets.
Research Analyst
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FOR MEMBERS ONLY
Update to Methodology: Afghanistan and Pakistan are now included in Emerging Asia, rather than MENA, regional totals. Unless otherwise specified, EMPEA’s data and statistics include private equity, private credit, infrastructure and real assets.
Capital invested in 1H 2017 increased 45% from 1H 2016, while fundraising increased 29% over the same period
Total capital invested reached US$8.4 billion in Q2 2017, the highest quarterly total recorded by EMPEA
Emerging Asia Fundraising and Investment, 2013-1H 2017
Emerging Asia Investment by Quarter, Q3 2015-Q2 2017
37 32
28
US$ Billions
22
19
$20
17 15
$10
18
10 8.3 $0
$8 26
2013
2014
13 10
2015
n Funds Raised
243
219
$6
307
288
220
210
302
262
198
186
324
289
300 216
194
200
$4
100
$2
15 14
12
326
322
$0
2016
n Capital Invested
1H 2017 1H
6.7
5.8
4.7
5.7
7.0
4.9
6.7
Q3
Q4
Q1
Q2
Q3
Q4
Q1
2015
2016
-n- Total No. of Deals
n Capital Invested
8.4 2017
0
Q2
-l- No. of VC Deals
KKR Asian Fund III is the largest fund raised for Emerging Asia on record, reaching US$9.3 billion in commitments
Pan-Asia funds, led by KKR Asian Fund III, accounted for 62% of capital raised in 1H 2017
Emerging Asia Largest Funds Raised, 2006-1H 2017
Emerging Asia Fundraising by Geographic Focus, 2013-1H 2017 100% % of Total Capital Raised
KKR Asian Fund III KKR Asian Fund II RRJ Capital Master Fund III CVC Capital Partners Asia Pacific III MBK Partners IV $0
80% 60%
0%
$2
$4
US$ Billions
$6
$8
7% 7%
7% 10% 8%
8% 14%
34%
38%
$10
19%
7%
11%
28%
31%
40% 20%
61% 37% 2013
47%
43%
2014
2015
62%
7% 2016
1H 2017
n Pan-Asia n China n India n Southeast Asia n Other
Investments over US$300 million in size accounted for 53% of all capital invested in 1H 2017
Capital invested in China and South Korea in 1H 2017 is on par with 2016 full-year totals
Emerging Asia Investment by Size, 2014-1H 2017
Emerging Asia Investment for Select Countries, 2H 2015-1H 2017
80%
10% 7% 15%
60% 40% 20% 0%
30%
10 12% 11% 13% 37%
11% 12% 12%
10% 8% 11% 13%
26% 53%
34% 2014
22% 2015
33% 2016
1H 2017
US$m n 300+ n 100-299 n 50-99 n 25-49 n 10-24 n
