The Evolution and Future of Private Equity in China

By most measures, China has emerged as the destination of choice for investors in emerging markets private equity. However, the rapidly evolving regulatory landscape and mushrooming of new funds have left ample opportunity for confusion and misunderstanding. This article clarifies the different types of private equity activity taking place in China, and represents EMPEA’s effort to educate industry stakeholders on the investible universe of fund managers operating in the country. It also explores three trends likely to shape the future of private equity in China: growing demand for the asset class; increasing levels of local LP participation; and, professionalization paving the way for local Chinese investors to pursue cross-border and international opportunities.