Private Capital in Asia-Pacific Insight into this Diverse Market - PowerPoint PPT Presentation

Private Capital in Asia-Pacific Insight into this Diverse Market Ling Yan Teo Manager - Asian Fund Managers 19 June 2017, Asia-Pacific Fund Finance Symposium, Hong Kong

Overview • Asia-Pacific Fundraising – strong start to 2017 • Highest average fund size this year • Strong deal acMvity last year • Asian LPs dominate infrastructure • PosiMve Asia-Pacific Outlook www.preqin.com

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Asia-Pacific Private Capital Fundraising Private Capital Fundraising by Geographic Focus, H1 2012 - H1 2017 Asia-Pacific-Focused Private Capital 2012-2017 YTD Fundraising 193 200 190 100% 189 187 3% 3% 4% 3% 4% 7% 10% 11% 90% 12% 15% 13% 157 18% 80% 150 28% 27% 23% 24% 70% 26% % of Total Capital 26% 60% 101 100 50% 40% 44.8 50 39.7 61% 36.1 36.2 36.1 30% 59% 59% 36 59% 55% 49% 20% 10% 0 H1 2012 H1 2013 H1 2014 H1 2015 H1 2016 H1 2017 (to 0% date) 2012 2013 2014 2015 2016 2017 No. of Funds Aggregate Capital Raised ($bn) US Europe Asia-Pacific ROW N.B. Figures based on fund primary geographic focus i.e. won’t capture $ invested in Asia Source: Preqin Private Equity Online by vehicles with primary investment focus outside of Asia-Pacific www.preqin.com

Average Fund Size at All-Time High Average Fund Size of Asia-Pacific-Focused Private Capital Funds 450 400 Average Fund Size ($mn) 350 300 250 200 150 100 50 0 2012 2013 2014 2015 2016 2017 YTD Year of Final Close Source: Preqin Private Equity Online www.preqin.com

Importance of Private Equity in Asia Asia-Pacific-Focused Aggregate Capital Raised by Asset Class, 2012 - 2017 YTD (As at May 2017) 100% Aggregate Capital Raised ($bn) 90% 80% 70% Natural Resources 60% Infrastructure 50% 40% Real Estate 30% Private Debt 20% Private Equity 10% 0% 2012 2013 2014 2015 2016 2017 YTD Year of Final Close Source: Preqin Private Equity Online www.preqin.com

2016: Record Year for Infrastructure Number and Aggregate Value of Infrastructure Deals Completed in Asia-Pacific, 2012 - 2017 YTD (As at May 2017) 800 200 180 700 Aggregate Deal Value ($bn) 160 600 140 No. of Deals 500 120 400 100 80 300 60 200 40 100 20 0 0 2012 2013 2014 2015 2016 2017 YTD No. of Deals Aggregate Deal Value ($bn) Source: Preqin Infrastructure Online www.preqin.com

Rise of Venture Capital Venture Capital Deals* in Asia-Pacific, 2012 - 2017 YTD (As at May 2017) 4,500 70 4,000 60 Aggregate Deal Value ($bn) 3,500 50 3,000 No. of Deals 40 2,500 2,000 30 1,500 20 1,000 10 500 0 0 2012 2013 2014 2015 2016 2017 YTD No. of Deals Aggregate Deal Value ($bn) *Figures exclude add-ons, grants, mergers, secondary stock purchases and venture debt Source: Preqin Venture Capital Online www.preqin.com

Highest IRR by Asia-Focused Funds Private Capital - Median Net IRRs by Vintage Year and Geographic Focus (As at May 2017) 18% 15.7% 16% 13.0% 14% Median Net IRR 12% Asia 10% 11.1% 8% Europe 6% 4% North America 2% 0% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Vintage Year Source: Preqin Private Equity Online www.preqin.com

Where are the LPs? Breakdown of Asia-Pacific-Focused Private Capital LPs by LocaMon Private Equity 52% 16% 25% 7% Real Estate 49% 17% 21% 13% Infrastructure 35% 13% 37% 15% Private Debt 67% 18% 10% 6% Natural Resources 68% 16% 8% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% North America Europe Asia Rest of World Source: Preqin Online Products www.preqin.com

Outlook – 3,100+ Private Capital Funds in Market Private Capital Funds in Market by Geographic Focus 100% 7% 11% 90% 21% 18% 80% ProporMon of Total 70% 18% 20% 60% 50% 40% 30% 54% 51% 20% 10% 0% No. of Funds Raising Aggregate Capital Targeted US Europe Asia-Pacific ROW N.B. Figures based on fund primary geographic focus i.e. won’t capture $ invested in Asia by vehicles with primary investment focus outside of Asia- Source: Preqin Private Equity Online Pacific. www.preqin.com

Outlook - LPs www.preqin.com

Outlook - GPs www.preqin.com

Key Takeaways • Asia-Pacific Fundraising – strong start to 2017 • Average fund size is growing • Importance of private equity • Rise of venture capital and infrastructure • PosiMve outlook: Ø 21% of capital being raised by funds on the road focused on Asia-Pacific (2 nd only to US) Ø 95% of LPs looking to maintain or increase their PE allocaMon to Asia Ø 86% of GPs looking to invest the same or more capital in Asia in 2017 than in 2016. www.preqin.com

Data Sources • Free reports available from www.preqin.com/research • Preqin’s online services: www.preqin.com/services www.preqin.com

Further Informa_on Request further informaMon from info@preqin.com Ling Yan Teo – lingyan.teo@preqin.com Follow us on Twiker: www.preqin.com/Twiker Find us on LinkedIn: www.preqin.com/LinkedIn www.preqin.com