We found an interesting data point in corporate finance advisory firm Bain & Company’s recently published Global Private Equity Report 2012. China is now in the top three countries with a high number of large companies, that is, companies with revenues greater than USD250 million.
The number of larger companies is correlated with the nominal GDP of an economy, says Bain & Co. China has 1150 of such companies, Japan has a little over 2000, and the US which remains in the top spot for now has 3500.
The data puts China ahead of Germany, France, UK, Italy Canada and Brazil. The implication for PE is that China is no longer only a mid-market buyout region. Bain predicts a similar trend for India, which is currently mainly all about mid-market dealmaking.
Just as an aside, it is interesting to note that Bain has had to publish a note on almost every major link on its website distinguishing itself from Bain Capital, pointing out that they are separate companies with no shared ownership or governance. Bain Capital has been receiving a lot of unwanted media attention due to Mitt Romney’s US presidential election campaign.