The world’s largest private equity firms are struggling to sell or list their China-based investments, due to Beijing’s restrictions on IPOs and a slowing economy. This has left billions of dollars of foreign investor capital locked in China, raising concerns about future returns.
The world’s biggest private equity groups have been unable to sell or list their China-based portfolio companies this year, as Beijing’s crackdown on initial public offerings and a slowing economy leave foreign investors’ capital trapped in the country. Among the 10 largest global private equity groups with operations in China, there is no record of any having listed a Chinese company this year or fully sold their stake through an M&A deal, figures from Dealogic show.
It is the first year for at least a decade where this has been the case, though the pace of exits has been slow since Beijing introduced restrictions on Chinese companies’ ability to list in 2021. Buyout groups rely on being able to sell or list companies, typically within three to five years of buying them, in order to generate returns for the pension funds, insurance companies and others whose money they manage. The difficulties in doing so have in effect left those investors’ funds locked away, with future returns uncertain. “There’s a growing sense among PE investors that China may not be as systemically investable as once thought,” said Brock Silvers, chief executive of Hong Kong private equity group Kaiyuan Capital. He said firms were facing “weakened exit strategies on multiple fronts” in China, including being affected by a slower economy and domestic regulatory pressure. Many private equity groups expanded their presence in the world’s second-biggest economy as it grew rapidly over the past two decades. Global pension funds and others ploughed capital into the country, hoping to gain exposure to its economic boom. The 10 firms invested $137bn over the past decade, but total exits amount to just $38bn, Dealogic data shows. New investment by those groups has collapsed to just $5bn since the start of 2022. The pace of buyout groups’ exits from deals globally has also been slowing. It was down 26 per cent in the first half of this year, according to a report by S&P Globa
PRIVATE EQUITY CHINA INVESTMENTS IPO ECONOMY
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Cruise Drinks Packages: Tricks, Traps, and How to SaveCruise holidays are gaining popularity, but booking can be tricky. Expert Gary Bembridge warns about the complexities of drinks packages, which can add up to $1,000 to your trip. He explains how to calculate if a package is worth it and how to choose the right one, especially considering the rule that every adult in a group must have the same package.
Read more »
Global warming fills New England waters with death traps for sea turtlesAs global warming fills the plankton-rich waters of New England with death traps for sea turtles, the number of stranded reptiles has multiplied over the last…
Read more »
Quiet European city neighbourhoods to escape tourist traps and crowdsThese up-and-coming and outlying districts reward the curious visitor with a quieter, more authentic experience - and they're often cheaper than the city centre
Read more »
Barry Keoghan posts thirst traps amid Sabrina Carpenter split and THOSE Breckie Hill cheating rumorsBarry Keoghan stars in new Burberry campaign where his accent is 'all over the place.'
Read more »
Barry Keoghan posts thirst traps amid Sabrina Carpenter split and THOSE Breckie Hill cheating rumorsBarry Keoghan stars in new Burberry campaign where his accent is 'all over the place.'
Read more »
Barry Keoghan posts thirst traps amid Sabrina Carpenter split and THOSE Breckie Hill cheating rumorsBarry Keoghan stars in new Burberry campaign where his accent is 'all over the place.'
Read more »