Private equity in China is booming; more than $30 billion has been raised since last year. Deals in the sector are also increasing rapidly in the region.
In a newsletter article, ARC China’s Adam Roseman writes:
“More money in, however, does not necessarily mean more money will come out through IPOs of other exits. In fact, on the exit side of the ledger, there is no real growth, but instead probably a slight decline, as the number of domestic IPOs in China stays constant and offshore IPOs (most notably in Hong Kong and USA) is trending down. M&A activity, the other main source of exit for PE investors, remains weak in China.”