Preqin’s latest research into the Asian private equity industry has highlighted the accelerated growth in venture capital investment throughout the region in recent years.
After a number of years of slower fundraising and investment activity across the continent, venture capital deal flow across Asia, particularly in more emerging economies such as those in Northeast and South Asia, has increased significantly.
The level of investment in buyout opportunities across Asia has also grown in 2014, with USD29.6bn of investment so far in 2014 compared to USD25.7bn in the whole of last year.
Buyout deals so far in 2014 in Greater China have totalled USD16.7bn in value, the highest aggregate deal value on record.
USD5.7bn has been invested in 189 venture capital deals in 2014 YTD, which is already more than the USD3.3bn invested throughout 2013, but below the USD7.7bn worth of investment seen across Greater China in 2011. 

Venture capital activity across Northeast Asia has grown significantly over the last few years, with the amount of capital invested increasing year-on-year since 2010, and 2014 YTD seeing over 60 per cent more capital invested in deals compared to all capital invested last year.
Northeast Asia buyout activity has fallen over the last couple of years, with USD4.9bn invested in buyout deals so far this year compared to USD7.7bn in 2013.


Following 2013 which saw almost USD1bn (USD921mn) invested in 104 venture capital deals across ASEAN nations, deal activity so far this year has fallen to 44 deals which have received USD131m in capital.
Buyout deal value has reached a record high of USD5.4bn in 2014 YTD across ASEAN nations, surpassing the USD4.7bn value of investments seen in 2011, the previous high. 

The number of investments and aggregate value of buyout deals done in South Asia countries has dropped significantly in recent years, falling from 173 deals in 2012 valued at USD5.0bn to 136 deals in 2013 valued at USD3.6bn. In 2014 year-to-date, there have been a total of 77 deals valued at USD2.5bn.
USD2.7bn was invested in 231 venture capital deals in 2014 YTD throughout South Asia, up from USD1.7bn invested in 346 deals throughout 2013.
“Over the last decade, Asia has traditionally been looked upon as a region for diversification by institutional investors and a region for countless opportunities in deal making by fund managers,” says Christopher Elvin, head of private equity products at Preqin. “Despite sluggish Asia-focused fundraising figures in the past year, private equity investment – particularly in the venture capital space – has been strong. There are a number of possible influences for the reinvigoration and resurgence of Asian private equity activity, such as the accelerated integration of ASEAN nations and the re-opening of China’s IPO market, both of which have been notable drivers of the Asian economy.
“While it be must be noted that the actual number of deals taking place across both the venture capital and private equity-backed buyout spaces are slightly deflated compared to recent years, the level of capital being invested across the continent is a clear sign that Asian private equity will continue to grow and mature.”
