EY published its latest Asia Pacific private equity report this week to show the trends and challenges facing active PE investors in the region. It is based on a survey conducted by mergermarket of 100 deal professionals, bankers and institutional investors between July and August 2011.
The findings are upbeat. The region is expected to be relatively more active than other parts of the world in the coming year, particularly in making acquisitions. Almost half of those surveyed expect to raise new capital, and close to 40% expect to be able to exit some of their current investments. The form of exit in Greater China and India over the next 12 months will be the IPO. And in more developed markets such as Australia and Japan, most respondents anticipate secondary buyouts or trade sales over the next 12 months. Indonesia is increasingly attractive as a target for investment activity, says EY.
When looking at Asia Pacific as a whole, 70% of respondents anticipate expansion of private equity activity. The majority (54%) expect a slight expansion, while 16% expect significant growth. Sector specialization is important, says the report authors, particularly energy, mining and utilities as well as consumer sectors. Graphics source: EY Asia Pacific Outlook