A research report under the above title by Mckinsey & Co dated May 2012 (with both Chinese and English versions) reveals the following salient points –

• PE is just beginning to be moving back to the Asia-Pacific with still a great great of upside (Exhibits 1, 2, and 3)

• Large top deals are dominated by China, including Hong Kong (Exhibit 10)

• There is significant growth in smaller deals (around $100 million) in the region, particularly New Zealand and Australia (some due to global interests in resources) (Exhibits 4, 6, 7) but also bright spots in South East Asia (Exhibit 17).

• Exits are dropping in Asia but stronger yen is driving Japan exits.

• RMB-denominated funds are growing in China (Exhibit 15) (in line with China's strategy of internationalizing the Chinese yuan and gradually opening up the financial sector)

• There is growing marriage between strategic investment and PE expertise (part and parcel of China's strategy of "Going Out" and becoming global players). This is related to the dramatic rise of cornerstone investments in Asian IPOs (Exhibit 20).

As Europe is beset with on-going sovereigh risks and the United States remains weak, the PE pendulum is beginning to swing to the East, in line with other global trends.

Download McKinsey, May 2012 – Private Equity Asia-Pacifc- Is the boom back