In the last four years Asia’s share of global PE transactions has doubled to 21 per cent according to a Reuters report citing McKinsey & Co executive. The consulting firm speculates that there will be a shift in deal flows, with the industry in Europe and the United States subdued due to economic slowdown and debt tightness.
Private equity investments for Asia in 2011 hit USD 65 billion, up 63 per cent from a year earlier, says the report. China continues to dominate with 45 per cent of the region’s private equity investments.
McKinsey’s data suggests there is little risk the region’s markets will become saturated due to the size of the GDP and economic growth rate. Private equity investments in 2011 in the US were equal to 1 per cent of nominal GDP, but China, Asia’s fastest growing market, has a penetration rate of just 0.4 per cent, the regional average