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Emerging Asia

Please find below a sampling of some of the latest EMPEA statistics, programs and content covering information on Emerging Asia. For a more comprehensive listing, please search "Asia" and customizable criteria in Advanced SearchScroll down for additional data and resources.


Pre-empting Fraud: Understanding the mindset of the Chinese entrepreneur 

Although China remains an attractive destination for private equity investors, it has gained a reputation as a market where contracts are often treated more like vague notions than bona fide agreements. Kroll commissioned the Economist Intelligence Unit to carry out the Annual Global Fraud Survey, which found that fraud continues to be pervasive in China, with 67% of senior executives based in China reporting they were affected by fraud in 2012 – 2013. The study also found the average percentage of revenue lost to fraud across industries in China rose 50% from 0.8% in 2011-2012 to 1.2% in 2012-2013.  Learn more »


 

Featured Presentation

Keynote Address: Robert W. van Zwieten, EMPEA - CAPE Conference 2013, Beijing

EMPEA President and CEO, Robert W. van Zwieten addressed the annual CAPE Conference in Beijing on 1 December 2013. In his keynote address, Mr. van Zwieten discussed the current state of the Chinese market and institutional investor sentiment, the critical importance of private equity to the country's economy, and the current state of the Chinese regulatory and tax landscape.

Source: EMPEA, 2013.

Legal & Regulatory 

India Regulatory Update

The Indian economy has been famously dubbed the elephant economy. Lately, the fabled elephant has unfortunately been bogged down by shackles. Criticism from the investor community suggests that India’s legal and regulatory systems have not kept pace with business and the requirements of an increasingly globalized economy. In response, the Government has recently taken significant steps to seek to remedy this situation. These recent developments should help in building investor confidence and are discussed in greater detail inside. Source: EMPEA, 2014.


 

Emerging Asia Fundraising and Investment Statistics

 

Source: EMPEA
  Fundraising (US$m) Investment (US$m)

2013

25,978

15,797

2012

25,502

13,947

2011

26,251

18,714

2010

14,206

18,308

2009

15,938

13,867

2008

39,660

28,270

2007

28,668

NA

 


 

Additional Resources

 

Inside Perspectives: An Interview with Khalid Quadir of Brummer & Partners (Bangladesh)
Khalid Quadir is Chief Executive Officer and Founding Partner of Brummer & Partners (Bangladesh), which manages the Bangladesh-focused Frontier Fund. Khalid makes the case for investing in Bangladesh via private equity and highlights some of the unique challenges to being a first mover in this market. Brummer & Partners AB is a leading hedge fund group based in Sweden with US$15 billion in global assets under management. Source: EMPEA 2013.

Inside Perspectives: An Interview with Archana Hingorani of IL&FS
Archana Hingorani, Chief Executive Officer and Executive Director of IL&FS Investment Managers, shares her perspectives on the key challenges currently facing the private equity industry in India and offers guidance on strategies for success in this new investment climate. IL&FS Investment Managers Limited (IIML) is one of the oldest and largest private equity fund managers in India, with over US$3.2 billion in assets under management.  Source: EMPEA 2013.

Identifying and Mitigating Risks in Southeast Asian Investments
With U.S. GDP growth projected at a sluggish 2% for 2013 and the Eurozone struggling to gain growth at all, it is no wonder that developing Asian markets are attracting so much investor interest. In fact, while China is projected to achieve 8% growth next year, Southeast Asia is expected to post GDP growth of 7%. Join EMPEA and Kroll Advisory Solutions for a Professional Development Webcast exploring the nuances of four Southeast Asian countries: Indonesia, Thailand, Vietnam and Myanmar.

Investment Adviser Regulations: A New Regime in India
On the 21 January 2013, the Securities and Exchange Board of India (“SEBI”) released the final SEBI (Investment Advisers) Regulations, 2013 (“IA Regulations”). Investment advisers were previously unregulated in India. With the enactment of the IA Regulations, SEBI has finally sought to plug this gap. Source: AZB & Partners, 2013

Asian LP Sentiment Toward Private Equity
In the current economic environment, competition for capital is fierce and GPs must increasingly look for new funding sources to complement their traditional investor base. This report takes another step toward providing a greater understanding of the pools of capital outside of North America and Western Europe that may potentially be available for EM PE investment. Source: EMPEA 2012

Impact Case Study: KPR Mill Limited (India)
In 2006, KPR’s leadership had ambitious plans for expanding the 22-year old company, but knew they would need to look beyond internally generated funds and debt financing to achieve their goals. After learning of the private equity model as a viable alternative to an IPO, KPR partnered with Blue River Capital, a Mumbai-based private equity firm that was actively looking for investments in India’s textiles sector.

Impact Case Study: United Envirotech Limited (UEL)
Founded in 2001 to help meet China’s water needs, UEL grew over the next decade to become a market leader in China’s wastewater industry. Despite its success, UEL saw the need for new financing and a new managerial platform to maintain its high level of growth, and it turned to global investment firm KKR for help. Through the partnership, KKR helped to accelerate UEL’s growth rate, secure the long-term debt financing necessary to support its expansion, and build a managerial platform for rapid growth.

Alternative Investment Funds Regulation in India: A Changed Regulatory Landscape
The notification of the SEBI (Alternative Investment Funds) Regulations, 2012 (“AIF Regulations”) on May 21, 2012, marked a watershed moment for the Indian private capital industry. A story that began in the mid 1980’s by Indian financial institutions like ICICI and IFCI has now culminated into a 200–300 fund-strong industry. The provision of a comprehensive, robust regulatory framework is a natural consequence for an industry that has grown admirably, and has played a significant part in the India growth story. Source: AZB & Partners, 2012.