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1、Asia Pacific Private Equity 2024 AlmanacAsia Pacific Private Equity 2024 Almanac01ContentsForeword 02Executive summary 03Market insights 05Looking to the future 13Market statistics 15Dry powder and fundraising 22Deloitte Asia Pacific Private Equity team 24Appendix Top deals by geography 25Our approa
2、ch 31Glossary 3202ForewordWelcome to the inaugural Deloitte Asia Pacific Private Equity Almanac.Private Equity(PE)plays a pivotal role in the health and growth of economies around the world,and nowhere more so than in Asia Pacific.The share of PE dry powder in Asia Pacific is disproportionately larg
3、e relative to the regions PE volumes:Asia Pacific PE dry powder is 23.7%of the global total1 whereas Asia Pacific PE deals only accounted for 15.2%of global PE deals in 20232 a clear indication of the increasing momentum of PE capital deployment in the region.Deloitte is deeply committed to supporti
4、ng the industry and enjoys a privileged position as a trusted value creation advisor across the end-to-end PE ownership cycle to many of the leading participants in the market be it deal origination and due diligence or operational consulting through to fund valuations and audits.This exposure and o
5、ur extensive experience across the sector put us in a strong position to develop unique insights and perspectives on the market and to provide analysis and commentary on market trends and trajectories.Our aim in producing this Almanac is to provide both a detailed and comprehensive picture of PE act
6、ivity across Asia Pacific in 2023,and an analysis of the overarching themes that emerged.We have striven to present those trends within the context of recent market history and have also cast our gaze into the future to explore some of the likely trends and influences that we believe will drive acti
7、vity in the coming year.We hope you find this both useful and thought-provoking and would welcome the opportunity to discuss our findings and perspectives in more detail.Dwight HooperPartnerCo-Leader,Deloitte Asia Pacific Private EquitySatoshi SekinePartnerCo-Leader,Deloitte Asia Pacific Private Equ
8、ityAsia Pacific Private Equity 2024 Almanac|ForewordThe Asia Pacific PE market is dynamic and growing.Deloittes private equity teams throughout Asia Pacific are proud to play our part supporting clients across the end-to-end PE ownership cycle and living up to Deloittes purpose:making an impact that
9、 matters.1.Preqin2.Mergermarket03Executive summary The year Asia Pacific PE grew upAsia Pacific Private Equity 2024 Almanac|Executive summaryInvestors may have hoped for 2023 to represent a long-awaited return to normal following years of COVID-19 disruptions;however,that failed to materialise.In fa
10、ct,slowing growth,more costly debt,and fundraising difficulty have led many to label 2023 as the end of an era for PE in Asia Pacific.But in hindsight,we may look at 2023 as the year Asia Pacific PE grew up.All but the most seasoned professionals may now be in unfamiliar territory,dealing with condi
11、tions they have not encountered before,but in many ways the Asia Pacific market is beginning to look more like its mature western counterparts.PE buyout transactions are becoming much more widely accepted in markets where previously they were not Japan and India while Chinas slower growth is driving
12、 a focus on target-screening criteria,strong business plans and operational improvements that are,ultimately,far more sustainable than top-line growth and speed to market.A year when flat was a win 2023 was a challenging year for PE:sentiment was low,with an unusually high number of failed deals and
13、 transaction volumes down(buyout investments dropped from 1,061 deals in 2022 to 947 in 2023);processes took longer and exits remained challenging(US$60B compared to US$63B in 2022).3 But despite this,transaction value remained effectively flat(buyout investments of US$119B compared to US$109B in 20
14、22)with a large proportion reflecting portfolio management.The emergence of the non-process sales processWith many deal processes foundering on this handicap,PE funds are employing softer but slower approaches to asset sales and different kinds of deals to avoid the practical difficulties and negati
15、ve perceptions that accompany a failed process.These dynamics may favour both strategic sellers,for whom price is not the only concern,and strategic buyers,who often require more time to complete a deal.Meanwhile,PE buyers,can make use of less stringent process timelines to explore creative structur
16、ing to help bridge the persistent bid-ask valuation gap with sellers,such as partial deals with earn-outs,synergies with existing portfolio,or hybrid debt/equity solutions.A hurdle-rate handicap moderates valuationsWhile operational performance has returned,PE exit valuations have not.Higher interes
17、t rates and greater macro-environment uncertainty are eating into the potential returns for financial buyers,whose target hurdle rates have not changed.Inevitably,higher financing costs are driving buyers to lower their potential entry prices,effectively adding a hurdle-rate handicap to valuations.S
18、lowing growth,more costly debt,and fundraising difficulty have led many to label 2023 as the end of an era for PE in Asia Pacific.But in hindsight,we may look at 2023 as the year Asia Pacific PE grew up.3.Note:unless otherwise noted,statistics throughout the Almanac are based on Deloitte analysis of
19、 market data;additional details are provided in the Market statistics section beginning on page 1504Diverging strategies,but China exposure key to a globally balanced portfolio Interest in China is at a relatively low ebb,at least by recent standards,and PE investors view on,and strategies for,China
20、 have become varied and divergent.Looking ahead,the same denominator effect that is currently keeping LP money away from PE funds to preserve asset-class diversity in portfolios may serve to push LPs back into China in order to preserve geographic portfolio diversity.In fact,many believe the market
21、has already hit peak pessimism for China and,for those able to invest with conviction,this may be a good time to put money to work there.Either way,investors will not be able to ignore the worlds second-largest economy in their global portfolios.The subdued transaction volume in the market cannot an
22、d will not persist forever,and green shoots are already showing.Interest rates may have peaked and,following more than a year of suppressed volumes,the accumulation of both dry powder and ageing assets is pressuring GPs to transact.New and current investors are unlikely to invest further funds while
23、 PE houses sit on such significant stores of dry powder and swelling portfolios of aging assets.There are deals to be done,dry powder to be spent,and value to be created it will just take operational work,bilateral negotiations,and a bit of creativity.Operations in the driving seat and more-creative
24、 routes to LP liquidityIn the face of low transaction volumes and the challenge in achieving satisfactory exit valuations,PE funds are increasingly focusing on driving value through operational improvement and funding dividends via more ambiguous liquidity strategies including continuation funds,par
25、tial exits,and strip sales or portfolio sales to secondary funds or fund-of-funds.Asia Pacific Private Equity 2024 Almanac|Executive summaryFundraising stalemate today:investment opportunities tomorrow?The fundraising stalemate drastically reduced the number of funds closed(385)and dry powder raised
26、(US$63.2B)for Asia Pacific PE funds across strategies(buyout,VC,secondaries,fund-of-funds,and special situations)a ten-year-low.The longer this stalemate continues,the more vintages that will exist with a limited set of buyout funds.This will mean that as GPs move into exit mode for their older vint
27、ages in two,three or four years,there may be meaningfully fewer funds in investment mode competing for deals.7.0%Average,24E-28E4.1%1.9%2.3%201420162018202020222024E2026E20152017201920212023E2025E2027E 2028E5.0%3.0%1.0%-1.0%-3.0%-5.0%-7.0%Asia PacificEuropeNorth AmericaGDP growth by region,2014-2028
28、E05Market insights 2023 an inflection pointSource:IMFTransitioning to a more mature Asia Pacific PE marketFollowing years of low-cost debt,supportive public market exits,and seemingly ever-increasing valuations,the tide began to turn in late 2022 with a drop in M&A transaction volumes that continued
29、 throughout 2023.In much of the world,accommodative monetary policy and government subsidies that supported economic activity throughout COVID-19 led to strong economies with low unemployment,but also to rising inflation,which was exacerbated by supply chain disruptions and heightened geopolitical c
30、oncerns.In response,central banks raised rates,resulting in more-costly deal financing for PE funds.So,in the same way that the world economy struggled to adjust to the onset of a global pandemic,it has struggled to return to normalcy coming out of a pandemic.Growth rates have returned post COVID-19
31、 but appear to have settled lower than they were pre-pandemic particularly in Asia Pacific.Geopolitical events are disrupting markets and supply chains remain under pressure.While inflation has largely slowed,there is still no clear consensus on when or how quickly central banks will lower rates.Mar
32、ket uncertainty,high financing costs,and slower growth are all combining to make it a challenging environment for PE deal activity.Asia Pacific Private Equity 2024 Almanac|Market insightsMarket uncertainty,high financing costs,and slower growth are all combining to make it a challenging environment
33、for PE deal activity.06 Australia experienced a pivot away from sectors highly exposed to discretionary consumer expenditures with greater focus on resilient sectors such as healthcare and education,or those tied to new energy transition though relatively few of these transactions closed over the co
34、urse of the year.Meanwhile,slower growth in China has dampened some investors appetite in the region.But this does not mean the end of inbound investment.Slowing growth is natural and expected of economies as they reach a certain scale;the US is the largest,most-developed PE market in the world,desp
35、ite having lower growth and higher interest rates than many parts of Asia.A slower-growth environment simply requires more stringent target-screening criteria,developing strong business plans and focusing on operational improvements rather than a focus on top-line growth and speed to deploy capital,
36、as is the focus in a high-growth market.This shift in growth profile can therefore be seen as a point of inflection for how PE funds invest,and another indication of the maturing Asia Pacific PE market.So,perhaps what we are really seeing is not so much the end of an era for Asia Pacific PE markets,
37、but the beginning of a more mature phase in which,in various ways,they are coming to more-closely resemble and behave like their western counterparts.Considering this backdrop,many PE market participants and observers have argued that 2023 marked the end of an era for PE.Globally,a period of low-cos
38、t debt that began following the global financial crisis,has come to an end,with the return of high benchmark rates.In certain parts of Asia Pacific,this is compounded by slowing growth rates.Chinas GDP growth was estimated to be 5.2%in 2023;apart from COVID-19 years,which were exceptional,that is th
39、e lowest rate since 1990.4This leaves the industry in an unusual position regarding talent and experience,with all but the most senior and experienced PE professionals having cut their teeth and built their careers in a cheap-debt,high-growth environment.These conditions have disappeared,and profess
40、ionals are now facing a transition from growth-oriented deals backed by cheap debt to investments that focus on operations and that will deliver the cashflow needed to support costly debt payments.However,on closer inspection,this does not look like the end of an era for Asia Pacific PE.In contrast
41、to the western PE markets that rely heavily on leveraged finance to support deals(Term Loan B or high-yield bond financing),Asia Pacific PE funds often utilise local bank financing,which somewhat insulates them from the rise in rates seen globally.While difficult IPO markets(Asia Pacific IPO proceed
42、s dropped 33%in 2023)5 and macroeconomic uncertainty reduced transaction volumes overall in Asia Pacific(buyout investments dropped from 1,061 deals in 2022 to 947 deals in 2023),activity remained strong in some places,notably Japan(deal value in USD and JPY up year-on-year 48.5%and 68.5%respectivel
43、y in 2023),where public-to-private,corporate carve-out and business succession transactions provided PE firms with ample investment opportunities.In fact,the growing acceptance of PE-ownership demonstrated by these public company transactions can be viewed as a sign of a maturing PE market.Similarly
44、,India experienced a significant increase in buyout deal value(up 67.2%year-on-year in USD and 102.4%in INR),an expression of the growing acceptance of buyout transactions in a market that has historically skewed towards growth investments.4.Chinas National Bureau of Statistics5.DealogicActivity rem
45、ained strong in some places,notably Japan(deal value in USD and JPY up year-on-year 36.4%and 54.9%respectively in 2023),where public-to-private,corporate carve-out and business succession transactions provided PE firms with ample investment opportunities.Asia Pacific Private Equity 2024 Almanac|Mark
46、et insights400350300250200150100500HKEXKOSPINikkei 225 IndexS&P BSE Sensex IndexShanghai SE CompositeKey Asian exchange indices,2014-2023201420162018202020222024201520172019202120233010EBITDA MultipleEBIT MultipleEarnings Multiple201420162018202020222015201720192021202320Asia Pacific median sponsor/
47、trade exits,2014-202321.113.011.807A hurdle-rate handicap Same valuations,different problems2023 was effectively the first year of post-COVID-19 economic activity in Asia Pacific.China ended its zero-COVID-19 policy in January;Japan lifted its travel restrictions in April;and Korea ended inbound qua
48、rantine requirements in June.For PE portfolio companies,this led to a rolling off of the pro forma adjustments used throughout COVID-19,as operational performance returned to pre-COVID-19 levels.Over the preceding years,many GPs made the argument that their portfolio company valuations should remain
49、 steady despite receding comparable public-market valuations.This reflected the oft-espoused benefit of private holdings less-volatile valuations with no need to constantly mark-to-market.It also represented a view that the impact of COVID-19 on portfolio company operations would be transient,with o
50、perations returning to pre-COVID-19 levels after the pandemic ended.The prevailing view was that portfolio company valuations would also return.Unfortunately,that view was only partly correct:most companies operational performance has returned to or near to pre-COVID-19 levels,but PE exit valuations
51、 have not.Instead,higher interest rates and greater macro-environment uncertainty are eating into the potential returns for financial buyers,whose target hurdle rates have not changed.With the possible exception of Japan,where financing is relatively inexpensive,hitting those hurdle rates is increas
52、ingly difficult at pre-COVID-19 valuations.Carrying higher financing costs and investing into a more conservative business case inevitably demands that buyers lower their entry price,effectively adding a hurdle-rate handicap to valuations.Asia Pacific Private Equity 2024 Almanac|Market insightsSourc
53、e:RefinitivSource:MergermarketDeal termsManagement change(buyer)Reported/rumored reasons for failed processes,2023Pursue IPORegulatoryPoor performanceNew bidderLack of interestValuation gap08Amorphous sales processes Hesitant to launch and longer to closeOver the past few years,PE asset sale process
54、es have faced numerous headwinds:COVID-19,geopolitical shocks,supply chain disruptions,currency movements,increased interest rates,and bid-ask valuation gaps to name just a few.Deloittes analysis of Asia Pacific PE deals in market suggests that at least 50 processes for PE assets were pulled or paus
55、ed in 2023 as a result of these dynamics.In the face of this uncertainty,many PE sellers were unconvinced that launching a formal sell-side process would result in a binding bid at a valuation that they could accept.As a result,PE sellers and their sell-side advisors shied away from traditional two-
56、round processes and increasingly used a new tactic to avoid failed deals:not launching a deal.Instead,throughout 2023 many deals started as investment banks and sellers soft sounding,testing waters or conducting early discussions.And when deals did start in earnest,there was often no set timeline or
57、 definitive process letter.In this way,processes in 2023 functioned more like bilateral or more accurately multi-lateral negotiations between seller and buyer(s).While PE sellers still had lofty valuation expectations,they valued discretion from potential buyers to prevent their assets being tainted
58、 by a failed process.The result was many pro-long processes,with some dragging on for six,nine,or even 12 months without resolution.However,for strategic sellers,particularly founders or corporates selling an asset due to management-succession issues,it was a different story and price was not the on
59、ly concern.This category of seller wants to understand how PE funds can improve and grow the business,to provide comfort to employees and other stakeholders,such as suppliers,customers and the wider community.Unencumbered by a strong valuation expectation,the risk of a failed process is lower for th
60、ese sellers.As a result,Japan,where it is estimated that as much as 60%of PE deals are driven by succession issues,continued to see a strong pipeline of traditional processes in 2023.The slower-paced deal environment for portfolio company sales is likely to continue in 2024 and may favour strategic
61、buyers,who often require more time to complete a deal.Meanwhile,PE buyers,can make use of less stringent process timelines to explore creative structuring to help bridge the persistent bid-ask valuation gap with sellers,such as partial deals with earn-outs,synergies with existing portfolio companies
62、,or hybrid debt/equity solutions.Source:Deloitte Asia Pacific PE Opportunity PipelineAsia Pacific Private Equity 2024 Almanac|Market insightsAsia Pacific PE strategies to navigate the downturnExpanding operating capabilitiesAccelerate investmentsAdd on acquisitionsFocusing on non-cyclical sectorsMak
63、e minority/other equity investmentsUtilising earn-outsDedicate capital to Distressed/SS dealsSlow down/decelerate investmentsPortfolio diversification0%10%20%Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Dec 2022Jun 2023Unrealised valueDry PowderAsia Pacific secondaries asset under
64、 management(US$B),2014-Jun 2023051015202530US$24B09Portfolio management and flexible exits Operations and liquidity are the new investments and exitsIn the face of fewer transactions and a perhaps understandable unwillingness to exit at market valuations,PE funds turned their attention to operations
65、 throughout the year.This shift in focus was reflected by an increase in bolt on activity,changes to portfolio company talent,and a greater proportion of deal-team time being spent on portfolios rather than new deals.In fact,while the Asia Pacific market for buyout investments appeared to remain fla
66、t in 2023 at US$116B(vs.US$109B in 2022),a large portion of activity was portfolio related.Five of the ten largest Asia Pacific buyout investments in 2023 featured some element of portfolio management bolt ons,selling between a GPs own funds,and/or partial sales.The tough IPO market and valuation mi
67、smatches have driven a change in GP mindsets about exits as well.LPs contribute capital when the GP acquires a company and issues a capital call.They get their investment back through distributions to paid-in capital(DPI),typically as dividend payments and proceeds from the companys sale.With rising
68、 interest rates,dividend recapitalisations are difficult and costly,leaving portfolio company sales as the primary way to return capital to LPs.However,in a challenging exit market,the once-straightforward idea of selling assets to return cash to LPs has morphed into a larger,more ambiguous set of l
69、iquidity strategies.In an effort to return capital to LPs,PE funds have employed a range of creative means to generate liquidity outside of the traditional sale of IPO,such as:Continuation funds to extend the ownership period of individual assets,for example PEPs single-asset continuation fund for U
70、p Education,an asset held since 2015,or EQTs transfer of Vistra into its latest fund via merger with Tricor.Partial exits,which retain valuation upside while partially monetising for LPs,for example Affirma Capitals partial stake sale in TBO Tek to General Atlantic,or Bains partial sale of Works Hum
71、an Intelligence in Japan which also transferred Bains holding into its latest fund.Strip sales or portfolio sales to secondary funds/funds-of-funds to balance liquidity needs while capturing further upside in the assets owned,for example Coller Capitals investment in Legend Capitals healthcare asset
72、s;as more GPs explore this option,we are seeing continued growth in the emerging Asia Pacific secondaries fund market.Asia Pacific Private Equity 2024 Almanac|Market insightsSource:Dechert 2024 Global Private Equity OutlookSource:Preqin2014201620182020202220232015201720192021Average number of months
73、 to first closeAverage number of months to final closeAsia Pacific PE buyout fundraising time spend(number of months)05101520252210Fundraising frustrations A GP-LP stalemate,with potential repercussionsIf you were looking for a catchphrase to epitomise 2023 PE fundraising,it might have been recycled
74、 capital or DPI or maybe denominator effect.But in reality,it was stalemate.Reduced public market valuations resulted in LP over-exposure to PE the denominator effect.And,rather than rebalance,many LPs opted to maintain their current portfolio exposure to the PE asset class,not putting new money in
75、until the money they already had invested in PE funds was returned recycling capital.But,in order to put existing investment money back to work,LPs need to get distributions from their current fund investments DPI.The result was a stalemate in fundraising,with LPs waiting for distributions to reinve
76、st and GPs waiting for exit conditions in the IPO and M&A markets to improve before they sold assets and gave LPs those eagerly anticipated distributions.As has been widely reported,growth and VC funds were the hardest hit,down 78%in capital raised from three years ago.But buyout funds also felt the
77、 squeeze,with many funds reducing their target size and LPs concentrating their limited investments into well-known,established funds.Buyout funds raised just US$20.6B in 2023,the lowest since 2018,and down 48%year-on-year.In fact,the two largest funds that closed in 2023(Bain Capital Asia V at US$7
78、.1B and Primavera Capital Fund IV at US$4.1B)represented 54%of the total buyout funds raised in Asia Pacific in 2023.The difficulty in fundraising can also be seen in the average time funds are in market,which is at a ten-year high of 20+months from launch until final close.The two largest funds tha
79、t closed in 2023(Bain Capital Asia V at US$7.1B and Primavera Capital Fund IV at US$4.1B)represented 54%of the total buyout funds raised in Asia Pacific in 2023.Asia Pacific Private Equity 2024 Almanac|Market insightsSource:Preqin201820192021202320202022Asia Pacific buyout funds raised(US$B),2014-20
80、23Asia Pacific growth and venture capital funds raised(US$B),2014-2023010203040506052.442.134.438.439.720.620142016201820202022 202320152017201920210501001502002507288153191180172138142683111One of the brightest spots in 2023 was local currency funds particularly fundraising for RMB vehicles,with mo
81、re GPs raising RMB funds for global investments.However,this may represent shifting sentiment in geopolitics rather than a lasting change in fundraising dynamics,because GPs targeting China-for-China investments are creating dedicated local RMB funds to complement,rather than replace,their main USD
82、funds.While the difficult 2023 fundraising market has been widely reported on and observed,there may be longer-term repercussions that have attracted less attention.The typical PE fund may have a 7-10-year life,but the investment period can be much more limited since GPs tend to deploy capital early
83、 in the funds life.In fact,as funds reach then end of their life,they no longer invest in new deals and focus solely on managing exits.The fundraising stalemate drastically reduced the number of funds closed and dry powder raised in the 2023 to 385 funds and US$63.2B respectively,a ten-year-low.The
84、longer this stalemate continues,the more vintages that will exist with a limited set of buyout funds.As GPs move into exit mode for their older vintages,the market in two,three or four years may have meaningfully fewer funds competing for investments.As GPs move into exit mode for their older vintag
85、es,the market in two,three or four years may have meaningfully fewer funds competing for investments.Asia Pacific Private Equity 2024 Almanac|Market insightsSource:Preqin,Deloitte analysisSource:AVCJAustralia and New ZealandIndiaChinaSoutheast AsiaEuropeJapanKoreaUnited StatesGDP(PPP)by country/regi
86、on,2014-2028E(US$T)2014 201520172019 2020 2021 2022 2023E 2024E 2025E 2026E 2027E 2028E201620180102030405012China considerations Diverging views on China investmentHistorically,private investment into China was relatively straightforward it was large,growing,a factory to the world,and a tech innovat
87、or;you just invested and watched it grow.But for the first time in over a decade,PE funds view on,and strategies for,China have become incredibly varied and divergent.In 2023,GPs China investment strategies covered the entire spectrum:no China investments;only China-for-China without global connecti
88、ons;only China with cross-border value-add;or doubling down on growing China while competition pulls away.Geopolitics and slowing growth rates may have concerned some GPs or their global investment committees but LP demands drove much of this change,pushing Chinese funds to expand their focus to inc
89、lude more Pan-Asian and global opportunities.This in turn impacted other markets in Asia Pacific,as GPs shifted their attention to Southeast Asia,Japan,or India,and repositioned their deal teams accordingly.In fact,2023 saw PE professionals moving in all directions.New fund offices opened in Singapo
90、re,India,and Japan.Some funds repositioned teams into mainland China,while others moved their China teams out.Both regional and global funds competed for talent in Japan to capture a share of the growing market,and regional Asian funds continued building teams on the ground in the US and Europe.Many
91、 of these movements had already started before sentiment on China began to change but investor views on China undoubtedly accelerated these strategies.Looking into the future,global investors targeting a well-diversified portfolio will need to consider the fact that China is now the second-largest e
92、conomy in the world,or the largest when adjusted for purchasing power parity.Although their interest may be currently low by recent standards,they cannot simply ignore this significant factor.Forgoing investments into China would be comparable to forgoing investment in the US or Europe unfathomable
93、for any fund claiming to be a global investor.For this reason,at some point in the future,global investment in China will return.And,ironically,the same denominator effect that is currently keeping LP money away from PE to preserve asset-class diversity in portfolios could serve to push LPs back int
94、o China in order to preserve geographic portfolio diversity.In fact,if,as many believe,the market has already hit peak pessimism for China,there may be no better time than now for those that can invest with conviction to put money to work there.Perhaps the clearest indication of having passed this p
95、eak,and a vote of confidence going forward,was McDonalds buying back Carlyles stake in McDonalds China in November 2023.McDonalds to Acquire Carlyles Stake in McDonalds China“China is now our second largest market;weve doubled our restaurants to more than 5,500 since 2017,”said Chris Kempczinski,McD
96、onalds President and Chief Executive Officer.“We believe there is no better time to simplify our structure,given the tremendous opportunity to capture increased demand and further benefit from our fastest growing markets long-term potential.”McDonalds Press Release,20 Nov 2023Asia Pacific Private Eq
97、uity 2024 Almanac|Market insightsSource:IMF13Looking to the future What 2024 might holdAsia Pacific Private Equity 2024 Almanac|Looking to the futureIt is a truism to say that the markets never stand still,so while the turning of the year provides a useful milestone to reflect on where we have arriv
98、ed and how got here,it is also just the next day in the constantly evolving world of PE.Much of what we have seen over the last 12 months will continue into the next.The forces and tides that we identified in our market insights will,for the most part,keep going.And while PE funds have an advantage
99、over the quarterly report-driven public markets of being able take a longer-term view,they also have to respond to the pressures of their fund lifecycles,continuously finding ways to deploy capital and deliver returns.Having taken a detailed look back over the past year,the start of a new year provi
100、des an opportunity to broaden our focus and explore the themes that are likely to emerge or build,and which will drive PE activity over the coming year.Deal momentum:Transaction pace will slowly increase,with momentum building towards year endIn the absence of any apparent near-term catalysts to cha
101、nge market momentum,early 2024 market activity looks set to be a continuation of the past year.Robust markets,such as India and Japan,will continue at pace,driven by strong demand and support for deals,for example,Tokyo Stock Exchanges request for companies with low price-to-book ratios to improve v
102、aluations.Meanwhile,slower markets,such as China and Australia,may remain less active.Globally,GPs are becoming accustomed to the new normal of a high-interest-rate environment.However,with consensus around a US soft landing,there is new hope for rate cuts in the near future.This may have a delaying
103、 effect on deal making as participants seek to mitigate the hurdle-rate handicap by holding out for lower rates.Moreover,with multiple conflicts,threats to shipping lanes,and many important elections both in the region and globally there is little prospect of the geopolitical backdrop improving sign
104、ificantly.Without any major catalysts,GPs are likely to maintain a wait-and-see approach to launching exits and an equally cautious approach to new investments.However,by the second half of 2024,greater visibility on financing and geopolitics,and a confluence of external pressures refinancing,LP dem
105、and for DPI,and ageing investments should begin to drive greater M&A volumes.Bespoke deals:The emphasis on bespoke transactions and unique deal structures will intensifySecondary deals will continue to be bespoke,as GPs are hesitant to launch formal processes and still reluctant to reduce valuation
106、expectations.However,with an increased focus on liquidity options as opposed to outright sales there will be more scope for creative structuring with processes running off schedule,requiring more diligence,and negotiating more points.Savvy buyers will leverage the current market environment to unloc
107、k unique situations outside of normal processes,for example through novel structures,reapproaching failed processes or approaching MNCs for corporate carve-outs.GPs will use more minority purchases,convertibles or structured investments,and even portfolio business combinations between two or more fu
108、nds.Outside of portfolio assets,funds will likely look to business succession and founder retirements as a source of deals.PE funds will continue to see deal opportunities arising out of a range of developments,including corporate governance reforms,business portfolio rationalisation,the pressure fo
109、r capital efficiency,shareholder activist campaigns,shifting supply chain trends,and changing MNC strategies on global presence.In Deloittes 2024 Global Corporate Divestiture Survey,73%of respondent indicated they are likely to consider at least three divestitures in the next 12-18 months.6 In China
110、,ageing founders without heirs will continue to utilise PE exits for family businesses,particularly in the currently muted IPO markets.In Japan,increasing acceptance of PE buyouts and their value-add through operational improvements will drive more succession deals,public-to-privates,and corporate c
111、arve-outs.6.Deloitte 2024 Global Corporate Divestiture Survey14Operational focus:PE funds will continue to seek to drive value through operational improvements,particularly cash management and bolt on investmentsPE funds will grow larger operations teams and increase focus on operational improvement
112、 not just in portfolio companies but as a greater part of investment cases moving forward.As a result,sellers may spend more time outlining operational changes that a buyer could underwrite to help bridge the valuation gap and buyers may require more diligence to verify operational plans,which will
113、play a greater role in their investment decision-making.Both of these effects will extend the timelines for transactions.There may also be a convergence with the broader GenAI trend as some GPs seek to leverage AI to drive efficiencies at portfolio companies.For example,they may use AI to create con
114、versational commerce through the use of chatbots,messaging apps or voice assistants;analyse the effectiveness of sales reps calls;or summarise customer feedback more quickly.Increased regulation:the rules are changingWhile not necessarily a near-term concern,there are growing regulatory headwinds th
115、at could have an impact on PE in the medium to long term.The lack of disclosure requirements for fundraising,fees,and expenses such as side-letters,co-invest agreements,and billing of deal expenses are coming under scrutiny from the US regulator.After levying substantial fines on banks for a lack of
116、 communication records retention with respect to WhatsApp,the SEC has turned its attention to asset managers,and it is unlikely to say:Carry on as you are;everything here is fine.The upcoming rollout of Pillar 2 Global minimum taxation could also have a significant impact on large-cap buyouts,potent
117、ially affecting company valuations at time of exit and dampening returns as a result.None of these developments are imminent,but all could have a major impact.In the meantime,the launch of individual investor funds such as Blackstone and EQT will only draw more attention onto PE funds and how they o
118、perate.Change is coming.Recession vintage opportunity:a chance to win in the long gameElevated uncertainty,more costly financing,and greater investment scrutiny are combining to decrease overall competition for deals in most markets.While not technically a global recession,global sentiment is relati
119、vely low,as evidenced by Deloittes Asia Pacific CFO Survey for 2023,in which 57%of Asia Pacific CFOs8 named global economic slowdown or recession among the top three external risks facing their businesses,the other,unsurprisingly,being geopolitical issues.However,some buyers will regard this quasi-r
120、ecessionary environment as an opportunity to construct recession vintage portfolios.Such portfolios,built during difficult times,have historically overperformed when more positive conditions return.Buyers who conduct diligence,get conviction,and bridge valuation gaps and that is no small challenge m
121、ay be able to actively leverage the current flat conditions in pursuit of long-term gains.7.Deloitte Adapting ESG in private equity markets for clarity and value8.Deloitte Asia Pacific CFO Survey 2023Asia Pacific Private Equity 2024 Almanac|Looking to the futureESG:less talk,more actionThe buzz arou
122、nd ESG will begin to quieten,but not because ESG concern has gone away.In fact,to the contrary,a Deloitte survey of 100 fund managers in March and April of 2023 found that 87%of LP investors have a sustainable investing/ESG policy in place.7 Instead,the buzz will die down because ESG will become a n
123、ormal business-as-usual component of every deal.Firms will not trumpet their ESG credentials as much as before,but ESG will still be present as a necessary part of deal-making.The main change will be a shift in emphasis,from promoting ESG angles or stories(sell-side window-dressing)to greater focus
124、on actual ESG diligence and plans.Of course,in the same way that a nice-to-have will become normal and expected,businesses with a poor or no real ESG story will stand out more,but in all the wrong ways.In this developing narrative,it is worth remembering that LPs will set the tone.In current conditi
125、ons,they have the negotiating power and their ESG priorities will to a large extent influence what GPs do.In addition to the focus on strengthening ESG performance from an operational perspective,PE are increasingly thinking about ESG tailwinds from a strategic standpoint and how trends,such as the
126、energy transition,are giving rise to new businesses and sectors.As such,we are seeing traditional buyout and infrastructure funds acquiring businesses whose primary strategic focus is on providing products and services that will enable the transition(e.g.climate technology,energy software and hardwa
127、re and sustainable packaging)and deliver superior commercial returns.Venture investments(2013-2023)Buyout investments(2013-2023)166US$37.7B Grab SPAC listing1,0171,061947109119Deal valueDeal valueDeal countDeal countUS$BDeal countDeal countUS$B00001001004,0004002002008,00080025712,41414,54112,8409,7
128、8216211630030012,00040040016,0001,200201320132014201420162016201820182020202020222022202320232015201520172017201920192021202115Market statistics Buyout investmentsAsia Pacific Private Equity 2024 Almanac|Market statisticsPE investments overall trendsPortfolio management transactions supported a rela
129、tively flat market outcome Asia Pacific PE fund investments remained muted in 2023.Depending on the geography,a combination of issues is continuing to dampen transactions volumes:geopolitical tensions,supply chain disruption,declining consumer confidence,high inflation,and higher costs of capital to
130、 name a few:Venture capital investment was down 23.8%and 28.6%in deal count and deal value year-on-year respectively,a continued decline since a historical high in 2021.Buyouts,however,appear resilient with both deal count and value close to the levels in 2021(excluding the 37.7 billion Grab SPAC li
131、sting)and 2022.However,overall sentiment suggested a decrease in buyout investment volume for most markets;delving into the numbers supports this position;of the top ten PE buyout investments in 2023,five are related to investments in current portfolio companies,for instance:Zhuhai Wanda Commercial
132、Property Management,a US$9B deal for PAG and a broader consortium,was the restructuring of a prior transaction with pre-IPO investors after the company failed to IPO by the end of 2023.The merger of Tricor and Vistra allowed EQT to realise a Fund V investment via an investment from Fund VIII.GICs in
133、vestment in Works Human Intelligence allowed Bain to transform its controlling stake to a co-control joint ownership arrangement,partially exiting its position,and moving the remainder into Bains latest fund.Source:Deloitte analysisSource:Deloitte analysis16PE investments geography trendsChina lost
134、its top spot for buyout deal value The impact of macro-related headwinds varied across individual markets in the region:While other markets saw decreased activity,Japan the most active PE investment market by count and value saw deal count and deal value grow year-on-year by 4.6%to 252 deals and 48.
135、5%to US$38.8B respectively.Similarly,South Asia(predominately India)experienced growth in 2023 deal volume and value grew 15.4%to 180 deals and 66.1%to US$18.5B respectively.Australia and New Zealand experienced a significant drop in deal value to about half of that seen in 2022;this is partly expla
136、ined by a sizeable transaction in 2022.In Australia,the largest transaction in 2022 was Blackstones US$6.6B(AU$8.9B)acquisition of Crown Resorts;in comparison,the largest transaction in 2023 was Blackstones US$1.1B(AU$1.6B)acquisition of Energy Exempla.Meanwhile China,historically the largest buyout
137、 market in Asia Pacific by deal value,fell into second place despite the inclusion of multiple large portfolio management transactions(Wanda,Chindata,Vistra).Excluding just these three deals(US$14.9B of value),Chinese deal value would be less than that of India,and quite close to#4 Korea.Top geograp
138、hy in terms of buyout investmentsBy deal volume2023(rank)2022(rank)Japan252(#1)241(#2)South Asia180(#2)156(#4)China156(#3)271(#1)Australia and New Zealand149(#4)205(#3)Korea119(#5)95(#5)Southeast Asia88(#6)92(#6)By deal value(US$B)2023(rank)2022(rank)Japan38.8(#1)26.1(#2)China32.4(#2)28.9(#1)South A
139、sia18.5(#3)11.1(#5)Korea14.6(#4)17.8(#4)Australia and New Zealand9.4(#5)18.5(#3)Southeast Asia5.0(#6)7.0(#6)Asia Pacific Private Equity 2024 Almanac|Market statisticsSource:Deloitte analysis20%0%40%60%80%100%202220239.69.411.410.319.210.116.338.453.050.4LP DirectBuyoutPIPEPublic-to-PrivateOthers17Pu
140、blic-to-private growth with Japan leading the way Public-to-private investments increased in 2023,in terms of both deal count and value,as other categories held largely constant.There were 25 take-private deals with a total value of US$38.4B in 2023,up from 17 deals valued at US$16.3B in 2022.In Jap
141、an,updates to corporate governance code and takeover guidelines,increased investor activism,Tokyo Stock Exchanges scrutiny of low price-to-book companies,and abundance of low-cost financing contributed to buyout opportunities for PE funds to de-list Japan-listed companies.Japan recorded US$30.3B pub
142、lic-to-private transactions in 2023,accounting for 79%of total public-to-private deals in Asia Pacific.Japan public-to-private transactions also accounted for three of the top ten PE investments in 2023.Buyout deal types in terms of deal value(US$B)Asia Pacific Private Equity 2024 Almanac|Market sta
143、tisticsSource:Deloitte analysisTMTJapanSouth AsiaKoreaSoutheast AsiaTotal deal countTotal deal value(US$B)Middle AsiaChinaAustralia and New ZealandConsumerHealthcareBusiness ServicesEnergy,Utilities,Infra.&Real EstateFinancial ServicesIndustrialsTransport&LogisticsMetals&MiningTotal deal countTotal
144、deal value(US$B)18PE investments sector trendsTMT and consumer continue to be the sector of choice TMT led sector activity with 252 PE buyout deals worth a total of US$19.2B;and two of the ten largest deals in the region in 2023 were TMT deals.Competition in the chip industry is expected to intensif
145、y,as the growing needs for chip development and manufacturing have created strong demand;JICs acquisition of Shinko Electric Industries is an example.Software/SaaS is the top sub-sector with 116 deals worth a total of US$8.7B in 2023,with strong interest across regions e.g.Works Human Intelligence(G
146、IC,Bain)and Pushpay(BGH,Sixth Street).However,TMT activity dropped in China with recorded 36 deals worth US$4.7B in 2023,down from 57 deals worth US$5.1B in 2022.Consumer remained the second-most-active sector in 2023,however its deal activities dropped from 246 deals worth US$29.5B in 2022 to 202 d
147、eals worth US$26.5B in 2023.China,Australia and New Zealand saw the biggest dip in consumer deals though Australias deal value was skewed in 2022 by Crown Resorts(Blackstone,US$6.6B).Business services was another bright spot in 2023,with 99 deals worth a total of US$14.2B in 2023,up from 77 deals wo
148、rth US$3B in 2022.Industrials recorded decreased deal activities from 104 deals in 2022 to 72 deals in 2023,worth US$12.8B if we exclude JIPs US$14.8B take private of Toshiba,the largest PE investments in Asia Pacific in 2023.In particular,data centres,corporate services,and security were subsectors
149、 of interest,each one featuring in the top-ten investments this year:Bains acquisition of Chindata Group EQT Private Capital Asias merger of Vistra and Tricor EQT Value-Added Infrastructures acquisition of SK Shieldus.Sector heatmap by number of buyout investments(2023)783836562319225219.22814152113
150、8-9914.2201622572-7227.6252180156149119883947-38.818.532.49.414.65.0-118.7673429312119-20114.92111277183-8718.5923-126-322.018391811181712116.111266157141806.2-3-30.2ColdHotAsia Pacific Private Equity 2024 Almanac|Market statisticsSource:Deloitte analysis19#Target companyGeographyDeal dateDeal typeI
151、nvestorsSellers IndustryDeal size(US$)1Toshiba CorporationJapanSep 2023P2PJapan Industrial PartnersIndustrial Products$14.8B2Zhuhai Wanda Commercial ManagementChinaDec 2023BuyoutPAG,Trustar,Tencent Inv.,Ant Group,Shenzhen Country Garden Venture CapitalDalian Wanda Commercial Management GroupInfrastr
152、ucture&Real Estate$9.3B3JSR CorporationJapanJun 2023P2PJIC CapitalChemicals,Plastics&Rubber$6.6B4Shinko Electric IndustriesJapanDec 2023P2PConsortium led by Dai Nippon Printing,Mitsui Chemicals,JIC CapitalFujitsuHardware$4.9B5Chindata GroupChinaAug 2023P2PBainBusiness Services$3.2B6COFCO FulinmenChi
153、naFeb 2023GrowthCCT Fund Mgmt.,CIC,Affirma,National Social Security Fund China,China Life Asset Management,China Investment Corp.,Temasek,Cosco Shipping,HopuF&B$3.1B7Works Human Intelligence(WHI)JapanMar 2023BuyoutGICBain CapitalSoftware$2.6B8Vistra GroupHong Kong SARJan 2023Add on,MergerTricor Serv
154、ices(portfolio company of EQT),EQT,PSP InvestmentsEQTBusiness Services$2.4B9SK Shieldus Co.,Ltd.KoreaMar 2023BuyoutEQTSK Square,Keistone Partners,Macquarie PE Korea,Daishin PEBusiness Services$2.4B10Manipal Health EnterprisesIndiaApr 2023BuyoutTPG,Temasek HoldingsTPG,National Investment and Infrastr
155、ucture FundHealthcare Providers$2.0BTop 10 buyout investments in 2023Transaction related to investments and/or partial exit of existing investment portfolioAsia Pacific Private Equity 2024 Almanac|Market statisticsSource:Deloitte analysisAsia Pacific Private Equity exits*,2018-2023Deal value(US$B)Ex
156、it count201820202022202320192021US$21.7B trade sale of Afterpay AustraliaUS$BExit count00802502010050401506020010030012035014051.225824424938026132931.128.975.663.160.0400Asia Pacific Private Equity exits*by category,2023 vs.5-year average,in terms of deal value20PE exits Exits remained challenging
157、with fewer IPOs Exits remained low in 2023,with 329 exits worth a total of US$60B,with the average exit value declining 25%to US$182.4M.Total exit deal value was flat to 2022(US$63.1B),though it represents a substantial improvement over 2022 value if excluding the US$21.7B Afterpay deal in Australia
158、.Similar to investments,the exit transactions include a number of portfolio management-related deals,including the four of the top ten exits in 2023(Yingde Gases,Works Human Intelligence,Vistra and Manipal Health),representing a combined US$14.2B in value.PIPE 7%PIPE 3%Sale to management 1%Sale to m
159、anagementm 2%Unspecified 6%Trade sale 43%Average(2018-2022)2023Trade sale 39%IPO 22%IPO 13%Secondary buyout 26%Secondary buyout 38%*Note:excludes private debt,real estate and infrastructure deals9.DealogicAsia Pacific Private Equity 2024 Almanac|Market statisticsMarket statistics Buyout exits The mo
160、st common exit paths in 2023 were sales to strategic buyers(trade sale)and sales to other funds(secondary buyout),accounting for 39%and 38%of total deal value in 2023 respectively.Asia Pacific IPO proceeds dropped 33%in 20239,such that PE exits through IPOs represented just 13%of total PE exits vs.a
161、 22%over the past five years.Notably,none of the top ten PE exits in Asia Pacific in 2023 were IPOs.Source:Deloitte analysisSource:Deloitte analysis21#Target companyGeographyDeal dateSellersInvestorsExit type IndustryDeal size(US$)1Zhejiang Yingde Holding GroupChinaMay 2023AirPower Technologies(port
162、folio company of PAG)Hangzhou State owned Capital Investment Management Co.Ltd.Sale to strategicChemicals,Plastics&Rubber$7.2B2Works Human Intelligence(WHI)JapanMar 2023BainGICSale to fundSoftware$2.6B3Vistra GroupHong Kong SARJan 2023EQTTricor Services(portfolio company of EQT),EQT,PSP InvestmentsS
163、ale to fundBusiness Services$2.4B4SK Shieldus Co.,Ltd.KoreaMar 2023SK Square,Keistone Partners,Macquarie PE Korea,Daishin PEEQTSale to fundBusiness Services$2.4B5NICHII(aka NICHIIGAKKAN)JapanNov 2023BainNippon Life Insurance Co.Sale to strategicHealthcare Providers$2.1B6Manipal Health EnterprisesInd
164、iaApr 2023TPG,National Investment and Infrastructure FundTPG,Temasek HoldingsSale to fundHealthcare Providers$2.0B7McDonalds Outlets in China and Hong Kong SARChinaNov 2023Carlyle GroupMcDonalds Corporation Sale to strategicHospitality&Leisure$1.8B8Japan Wind DevelopmentJapanDec 2023BainINFRONEER Ho
165、ldings Inc.Sale to strategicEnergy&Utilities$1.5B9CMS Info SystemsIndiaAug 2023EQTPSP Investments,Aditya Birla Sun Life Mutual Fund,Goldman Sachs,Massachusetts Institute of Technology,ADIA,ICICI Prudential AMSale to strategicFinancial Services$1.3B10SOGO MEDICAL GROUPJapanDec 2023CVCPolaris CapitalS
166、ale to fundHealthcare Providers$1.2BTop 10 exits in 2023Asia Pacific Private Equity 2024 Almanac|Market statisticsTransaction related to investments and/or partial exit of existing investment portfolioSource:Deloitte analysisAsia Pacific PE dry powder*,2013-2023Dec-13Dec-14Dec-15Dec-16Dec-17Dec-18De
167、c-19Dec-20Dec-21Dec-22Dec-23N/AAP dry powder(US$B)Unrealised value(US$B)AP portion of global dry powder00%14412413015723630034848852746163923917.4%14.8%14.5%15.6%18.8%20.5%21.6%25.0%26.1%23.7%20.4%2703093624686148591,3262,24050010%5%1,00015%1,50020%2,00025%2,500Dry powder(US$B)AP portion of global d
168、ry powder(%)Number of funds closed30%1,961Asia Pacific PE fund raised*,2013-2023201360.0116.6168.95357771,5451,9162,3001,902305.9297.7251.9260.67951,6151,695339.1339.4Aggregate capital raisedNumber of funds closed020050004001,0006001,5008002,0001,000Fund raised(US$B)2,5002014201620182020202220152017
169、2019202120231,610138.338563.222Dry powder and fundraising Record levels despite fundraising stalemateAsia Pacific Private Equity 2024 Almanac|Dry powder and fundraising Over the past decade,Asia Pacific-focused PE dry powder and assets under management across all asset classes have increased by 344%
170、and 385%respectively,reaching a 2023 record high of US$639B.This accounts for 23.7%of global PE dry powder.However,the growth in dry powder is not simply a result of fundraising;in fact,PE fundraising across asset classes in Asia Pacific has experience significant decreases in the past two years,bot
171、h in terms of number of funds closed and aggregate capital raised.The number of funds closed in 2023 is the lowest since 2013,and the amount of fund raised is at a ten-year low.*Note:includes venture capital,buyout,secondaries,fund-of-funds and special situations;excludes private debt,real estate an
172、d infrastructureSource:Preqin,Deloitte analysisSource:Preqin,Deloitte analysisBuyout PE funds closed with geographic focus in Asia Pacific(US$B),2018-2023230201030405060 A similar trend is seen for buyout PE funds,with just US$20.6B raised in 2023 nearly half of the US$40B raised in each of the past
173、 four years.Despite the low fundraising,large funds are closing,which means there increasing concentration in the market as LPs consolidate their money in fewer buyout funds.#FundFund launch dateFund close datePrimary geography focusDeal size(US$)1Bain Capital Asia VN/AMay 2023Asia$7.1B2Primavera Ca
174、pital Fund IVJan 2021Feb 2023China$4.1B3Advantage Partners Fund VIIN/AApr 2023Japan$956M4Unison Capital Partners Korea Fund IIIN/AJul 2023Korea$769M5Capital Square Partners Fund IIN/AJan 2023Southeast Asia&India$700M6Crescent Capital Partners VIIFeb 2022Mar 2023Australia&New Zealand$670M7NSSK IIIMay
175、 2021Oct 2023Japan$667M8Nexus Point Partners IIN/AJul 2023China$600M9Novo Tellus PE Fund 3N/ADec 2023Southeast Asia$510M10Pemba Capital Partners Fund IIIN/AOct 2023Australia&New Zealand$407M52.442.134.438.439.720.6201820202022201920212023Top 10 Asia Pacific Buyout fund closed in 2023Asia Pacific Pri
176、vate Equity 2024 Almanac|Dry powder and fundraisingSource:Preqin,Deloitte analysisSource:Preqin,Deloitte analysis24Deloitte Asia Pacific Private Equity teamAsia Pacific Private Equity 2024 Almanac|Deloitte Asia Pacific Private Equity teamPrivate Equity Co-leadersPrivate Equity Origination&Almanac Ed
177、itorial TeamGeography Private Equity LeadersDwight H.hkSamuel P.hkKen T.hkAaron BlackAustraliaRichard DorsetNew ZealandConrad ChanChinaAndy KhannaSouth AsiaSekine SatoshiJapanSoo Earn KeoySoutheast AsiaSang Wook NamKoreaAlan WongTaiwan(China)Maggie D.hkMatthew L.hkSatoshi Sekinesatoshi1.sekinetohmat
178、su.co.jpFor more information,to discuss the findings in this document or to be connected with the relevant Private Equity team at Deloitte,please contact:Australia and New Zealand top 10 PE investments and exits in 202325AppendixTop deals by geographyAsia Pacific Private Equity 2024 Almanac|Appendix
179、#Target companyDeal typeDeal dateInvestorsSellersPrimary industryDeal size1Energy Exemplar ProprietaryBuyoutOct 2023Vista Equity Partners,BlackstoneThe Riverside CompanySoftwareAU$1.6B2Zimmermann Wear BuyoutAug 2023Advent InternationalStyle CapitalRetail(Durable+Non-Durable)/WholesaleAU$1.44B3Austra
180、lian VenueBuyoutAug 2023PAGKKRHospitality&LeisureAU$1.4B4VetPartnersBuyoutOct 2023EQTNational Veterinary AssociatesBusiness ServicesAU$1.4B5PushpayP2PMay 2023BGH Capital,Sixth Street GrowthTA Associates,Nikko Asset Mgmt.,Accident Compensation,ANZSoftwareNZ$1.37B(AU$1.28B)6AusencoBuyoutSep 2023Bright
181、star Capital Partners,Eldridge Industries,Claure GroupResource Capital FundsBusiness ServicesAU$900M7Estia HealthP2PAug 2023BainHealthcare ProvidersAU$838M8JELD-WEN Australia BuyoutApr 2023Platinum EquityJELD-WEN Inc.Consumer ProductsAU$688M9Honan InsuranceSale to strategic buyerAug 2023Marsh&McLenn
182、an CompaniesTA AssociatesFinancial ServicesAU$658M10 Nitro SoftwareP2PApr 2023Consortium led by Potentia,including L Capital and HarbourVestSoftwareAU$550MInvestmentExitSource:Deloitte analysisChina top 10 PE investments and exits in 202326#Target companyDeal typeDeal dateInvestorsSellersPrimary ind
183、ustryDeal size1Zhuhai Wanda Commercial ManagementBuyout,re-investmentDec 2023PAG,Trustar,Tencent Inv.,Ant Group,Shenzhen Country Garden Venture CapitalDalian Wanda Commercial Management GroupInfrastructure&Real EstateCNY65B2Zhejiang Yingde Holding GroupSale to strategic buyerMar 2023Hangzhou State-o
184、wned Capital Investment ManagementAirPower Technologies(portfolio company of PAG)Chemicals,Plastics&RubberCNY51B3Chindata GroupP2PAug 2023BainBusiness ServicesCNY22.1B4COFCO FulinmenGrowthFeb 2023CCT Fund Mgmt.,CICC,Affirma Capital,National Social Security Fund,China Life Asset Mgmt.,CIC,Temasek,Cos
185、co Shipping,HopuF&BCNY21B5Vistra GroupMerger,Add-onJan 2023Tricor Services(portfolio company of EQT),EQT,PSP InvestmentsFinancial ServicesCNY16.8B6McDonalds Outlets in China and Hong Kong SARSale to strategic buyerNov 2023McDonalds CorporationCarlyleHospitality&LeisureCNY12.6B7HollySys Automation Te
186、chnologiesP2PDec 2023Ascendent Capital PartnersSoftwareCNY11.6B8Gracell Biotechnology Ltd.Sale to strategic buyerDec 2023AstraZeneca6 Dimensions Capital,Suzhou Minying Capital,Janus Henderson,OrbiMed Advisors,Temasek,Wellington Mgmt.,othersBiotechCNY7B9Hangzhou Silan Microelectronics Co.,Ltd.PIIPENo
187、v 2023Guotai Junan,Shougang Fund,SINO-IC Capital,MSPE,China Life Asset Mgmt,UBS,othersHardwareCNY5B10 ZJLDIPOApr 2023KKRConsumer ProductsHK$5.3B(CNY4.8B)Asia Pacific Private Equity 2024 Almanac|AppendixInvestmentExitSource:Deloitte analysisJapan top 10 PE investments and exits in 202327#Target compa
188、nyDeal typeDeal dateInvestorsSellersPrimary industryDeal size1Toshiba CorporationP2PSep 2023Japan Industrial PartnersIndustrial ProductsJPY2,000B2JSR CorporationP2PJun 2023JIC CapitalChemicals,Plastics&RubberJPY904B3Shinko Electric IndustriesP2PDec 2023Consortium led by JIC Capital,Dai Nippon Printi
189、ng,Mitsui ChemicalsFujitsuHardwareJPY685B4Works Human Intelligence(WHI)Buyout,sale to fundMar 2023Bain,GICBainSoftwareJPY350B5NICHII(aka NICHIIGAKKAN)Sale to strategic buyerNov 2023Nippon Life Insurance Co.BainHealthcare ProvidersJPY310B6OUTSOURCINGP2PDec 2023BainHealthcare ProvidersJPY221B7Benesse
190、HoldingsP2PNov 2023EQTEducationJPY208B8Japan Wind DevelopmentSale to strategic buyerDec 2023INFRONEER HoldingsBainEnergy&UtilitiesJPY203B9SOGO Medical GroupBuyout,sale to fundDec 2023CVCPolaris Capital GroupHealthcare ProvidersJPY170B10 Hitachi AstemoGrowthOct 2023JIC CapitalAutomotivesJPY140BAsia P
191、acific Private Equity 2024 Almanac|AppendixInvestmentExitSource:Deloitte analysisKorea top 10 PE investments and exits in 202328#Target companyDeal typeDeal dateInvestorsSellersPrimary industryDeal size1SK Shieldus Co.,Ltd.BuyoutMar 2023EQTSK Square,Keistone Partners,Macquarie PE Korea,Daishin PEBus
192、iness ServicesKRW3,000B2Osstem ImplantBuyoutFeb 2023MBK Partners,UCK Partners KoreaMedical DevicesKRW1,800B3SK on Co.Ltd.Pre-IPOJun 2023BlackRock Inc;MBK Partners Inc.;Qatar Investment Authority;Hillhouse;SNB CapitalEnergy&UtilitiesKRW1,718B4AirFirst Co.,Ltd.BuyoutAug 2023BlackRockIMM Private Equity
193、Energy&UtilitiesKRW1,050B5Genuone Sciences Inc.Unspecified exitJul 2023Unspecified buyerIMM Private EquityPharmaKRW1,002B6PI Advanced Materials Co.,Ltd.Sale to strategic buyerJun 2023ArkemaGlenwood Private EquityChemicals,Plastics&RubberKRW1,000B7Lutronic CorporationP2PJul 2023Hahn&CompanyMedical De
194、vicesKRW964.6B8Hankuk Glass Industries,Inc.Sale to strategic buyerJan 2023LX International Corp.Glenwood Private EquityChemicals,Plastics&RubberKRW590.4B9NexFlex Co.,Ltd.BuyoutAug 2023MBK PartnersSkyLake InvestmentHardwareKRW530B10 ISC Co.,Ltd.Sale to strategic buyerJul 2023SKCHelios Private EquityH
195、ardwareKRW522.5BAsia Pacific Private Equity 2024 Almanac|AppendixInvestmentExitSource:Deloitte analysisSouth Asia top 10 PE investments and exits in 202329#Target companyDeal typeDeal dateInvestorsSellersPrimary industryDeal size1SharekhanLP DirectDec 2023Mirae Asset SecuritiesBNP Paribas,Human Valu
196、e Developers PrivateFinancial ServicesINR229B2Manipal Health EnterprisesBuyoutApr 2023TPG,TemasekTPG,National Investment and Infrastructure FundHealthcareINR163.8B3AM Green AmmoniaLP DirectOct 2023Petronas Ventures,GICEnergy Storage&BatteriesINR145.2B(US$1.75B)4CMS Info SystemsLP DirectAug 2023PSP I
197、nvestments,Aditya Birla Sun Life,Goldman Sachs,Massachusetts Institute of Tech.,ADIA,ICICI Prudential Asset Mgmt.EQTFinancial ServicesINR107.2B5HDFC CredilaBuyoutJun 2023Consortium led by EQTHousing Development Finance CorporationFinancial ServicesINR90.6B6Reliance RetailLP DirectAug 2023Qatar Inves
198、tment AuthorityReliance IndustriesRetailINR82.8B7CoforgeBlock TradeAug 2023EQTOutsourcingINR80.4B8Kerala Institute of Medical SciencesTrade SaleOct 2023Quality CARE India(portfolio company of Blackstone)True NorthHealthcareINR66.4B(US$800M)9Quality CARE IndiaBuyoutMay 2023BlackstoneEvercare Health F
199、und(managed by TPG)HealthcareINR58.1B(US$700M)10 Mankind PharmaBlock TradeDec 2023Capital Group,ChrysCapitalPharmaceuticals INR55.9BAsia Pacific Private Equity 2024 Almanac|AppendixInvestmentExitSource:Deloitte analysisSoutheast Asia top 10 PE investments and exits in 202330#Target companyGeographyD
200、eal typeDeal dateInvestorsSellersPrimary industryDeal size1Ramsay Sime Darby Health CareMalaysiaAdd-onNov 2023Columbia Asia Hospitals(portfolio company of Temasek and TPG)Healthcare ProvidersUS$1,524M(MYR6.9B)2SingTel.(Regional data centre business)(20%stake)SingaporeGrowthDec 2023KKRSingapore Tele-
201、communicationsInfrastructure&Real EstateUS$807M(SG$1.1B)3QuEST Global ServicesSingaporeBuyoutAug 2023CarlyleBain,Advent InternationalSoftwareUS$600M4MFS Technology SingaporeSingaporeSale to strategic buyerJul 2023Victory Giant TechnologyDCP CapitalHardwareUS$441M(SG$600M)5FV HospitalVietnamSale to s
202、trategic buyerJul 2023Thomson Medical GroupQuadria Capital,Neuberger Berman,DEGHealthcare ProvidersUS$328.5M6Masan GroupVietnamGrowthDec 2023BainTransport&LogisticsUS$250M7The Medical CityPhilippinesBuyoutOct 2023CVCLombardHealthcare ProvidersUS$228M(PHP12.7B)8Primaya HospitalIndonesiaLP DirectMar 2
203、023GICPT Sehat Abadi Cemerlang,PT Awal Bros Citra BatamHealthcare ProvidersUS$197M(IDR2.95T)9Challenger TechnologiesSingaporeP2PMay 2023Dymon AsiaHardwareUS$176M(SG$240M)10 PT Samator Indo GasIndonesiaPIPEMar 2023CVCEnergy&UtilitiesUS$155MAsia Pacific Private Equity 2024 Almanac|AppendixInvestmentEx
204、itSource:Deloitte analysis31Private Equity,by its very nature,can be an opaque arena,certainly when compared to other spheres of investment,and establishing a single,verifiable source of truth poses real challenges:different players provide information when they provide it at all in different format
205、s and using different metrics.The Deloitte Asia Pacific Private Equity Almanac attempts to overcome many of the shortcomings of this incomplete data to provide the most insightful view possible of the buyout market.It reflects commentary and market insights based on our close coverage of the market
206、throughout the year.Trends and statistics are checked against and supported by Deloittes proprietary database of portfolio holdings for PE funds in Asia.The scope of the Almanac is limited to buyout PE funds and their transactions(i.e.traditional buyout funds,focused on control deals),and as such,tr
207、ansactions deemed to be made by venture,growth,infrastructure,or real estate funds have not been included.Its geographic coverage spans PE activity across the entire Asia Pacific region:China,Japan,Korea,Australia and New Zealand,South Asia and Southeast Asia.Our aim has been to provide what we beli
208、eve is as rigorous and complete a view as is possible on the Asia Pacific buyout market a market that is notoriously difficult to track in a holistic and accurate manner.With the Deloitte Asia Pacific Private Equity Almanac,we are providing a new and valuable tool for industry participants to better
209、 understand the market as a whole qualitatively and quantitatively and as such,make better informed decisions.Our approachAsia Pacific Private Equity 2024 Almanac|Appendix32GlossaryAdd on/Bolt onAn acquisition performed by a PE-owned portfolio companyBankruptcy/write offAn exit in which the portfoli
210、o company discontinues operations/goes into liquidation/filed for insolvency,resulting in the PE firms stake being written offBlock tradeA transaction in a public security that is privately negotiated and executed outside of the open marketBuyoutInvestment in a majority or significant minority of a
211、company,often with the intention of gaining a controlling interest,with the goal of creating value by improving the operations of the companyChina-for-ChinaA localisation strategy which involves producing goods in China and selling them domestically to meet local demandsDenominator effectWhen the va
212、lue of one part of portfolio decreases drastically and pulls down the overall value of the portfolio,inflating the relative proportion represented by other parts of the portfolioDividend recapitalisationA way for companies to raise money by issuing debt and use the cash to pay shareholders a special
213、 dividendDPIDistributed to paid-in capital measures the total capital that a PE fund has returned to its investors,calculated as the cumulative value of all investor distributions as a multiple of all the capital paid into the fund up to that timeDry powderThe amount of capital that has been committ
214、ed to a private capital fund that has yet been allocated by the GP for investmentFund-of-fundA fund that invests its capital into other funds rather than into companiesGeneral partner(GP)Responsible for management decisions of the partnership,with respect to the ventures that are required to be inve
215、stedHurdle rateThe minimum return that the fund must achieve for investors before the general partner or manager can share in the profits;sometimes used to express target return rates as the hurdle return needed in modelled projections for a GP to make an investmentIPOInitial public offering is the
216、listing of private company shares on a stock exchange to be made available to the publicLapsed/withdrawnA deal that was agreed and announced,but subsequently did not complete;or a sale process that was stoppedLimited partner(LP)An investor,typically institutions,high-net-worth individuals and sophis
217、ticated investors that invest capital to a fund to be managed by a general partner(GP)Listed investmentInstrument that is publicly traded on a stock exchangeLP directAn investment or acquisition made into a single,specific asset by a limited partner(typically an institutional investor)MergerCombinat
218、ion of two PE portfolio companies into one PIPEPrivate investment in public equity is an investment made in a public company directly from the public company,via a private placementPro forma adjustmentAdjustment to financials made to display what the impact of changes on financials on a hypothetical
219、 basis i.e.what ifPublic-to-privateA listed company is acquired by a private equity firm and is de-listed from the stock exchangeRecycled capitalLP investors using capital returned from PE investments to commit to new PE funds,as opposed to making capital commitments with new money from their balanc
220、e sheet or money pulled out of other asset classesSecondary buyoutA PE-backed company is sold to another PE fundSecondary fundA private capital fund that purchases existing interests or assets from primary PE fund investorsSPACA special purpose acquisition company is a publicly traded blank check co
221、mpany created with the purpose of acquiring or merging with an existing private company,thus making it publicStrip saleThe partial sale of a funds investments(strip)in all/some portion of underlying assets to provide LPs with liquidityTLB/Term Loan BA tranche of senior secured credit facilities made
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