Asian Private Equity Picture Asian Private Equity Picture

1Links Capital GroupLinks Capital Group

Asian Private Equity PictureAsian Private Equity Picture

Jan 2003

LCG

135 East 57th Street, 8 Fl,New York, NY 10022

Norris Lam, CFATel: (212) 588 0044


Part IPart I•• Significant hangover of Significant hangover of uninvesteduninvested capital in capital in

both US and Europe; much less in Asia both US and Europe; much less in Asia

•• Capital Raised and InvestedCapital Raised and InvestedGlobalGlobalUSUSEuropeEuropeAsiaAsia

Global Private Equity Funds Raised & Invested Global Private Equity Funds Raised & Invested

Source : PWC Global Private Equity 2002

Links Capital GroupLinks Capital Group

Global Top 12 Investment & Fund Raised by Country in 2001 ($bn)

0

20

40

60

80

100

120

USA UK France Germany Japan Canada HongKong

China Italy Sweden Israel Korea

Fund RaisedInvestment Amount

Global Private Equity Funds Raised & Invested, Global Private Equity Funds Raised & Invested, ex USex US



Top 11 Investment & Fund Raised by Country in 2001, ex U.S.

0

2

4

6

8

10

12

14

16

18

20

UK

France

German

y

Japa

n

Canad

aHon

g Kon

g

China

Italy

Sweden

Israe

l

Korea

$bn

Fund Raised

Investment Amount

Private Equity Funds Raised & Invested in USPrivate Equity Funds Raised & Invested in US


Source : Venture Economics

U.S. Private Equity Funds Raised & Invested, 1981-2001

0

50

100

150

200

250

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

$bn

RaisedInvested

Private Equity Funds Raised & Invested in EuropePrivate Equity Funds Raised & Invested in Europe


Source : EVCJ

European Private Equity investment & Fund Raised, 1989 - 2001

-

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

$bn

RaisedInvested

Private Equity Funds Raised & Invested in Asia Private Equity Funds Raised & Invested in Asia

Source : The 2003 Guide of Venture Capital in Asia


Private Equity Funds Raised & Invested in Asia

-

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

$bn

Raised

Invested

Japan Private Equity Japan Private Equity 19911991--20012001



Japan Private Equity Funds Raised & Invested 1991-2001

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000

$mn

RaisedInvested

Korea Private EquityKorea Private Equity19911991--20012001



Korea Private Equity Funds Raised & Invested 1991-2001

0

500

1,000

1,500

2,000

2,500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

$mn

RaisedInvested

China Private Equity China Private Equity 19911991--20012001



China Private Equity Funds Raised & Invested 1991-2001

0

500

1,000

1,500

2,000

2,500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

$mn

RaisedInvested

Taiwan Private Equity Taiwan Private Equity 19911991--20012001



Taiwan Private Equity Funds Raised & Invested 1991-2001

0

200

400

600

800

1,000

1,200

1,400

1,600

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

$mn

RaisedInvested

Singapore Private Equity Singapore Private Equity 19911991--20012001



Singapore Venture Capital Funds Raised & Invested 1991-2001

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

$mn

RaisedInvested

Hong Kong Private Equity Hong Kong Private Equity 19961996--20012001



Hong Kong Venture Capital Funds Raised & Invested 1996-2001

0

1,000

2,000

3,000

4,000

5,000

6,000

1996 1997 1998 1999 2000 2001

$mn

RaisedInvested

Australia Private Equity Australia Private Equity 19911991--20012001



Australia Venture Capital Funds Raised & Invested 1991-2001

0

500

1,000

1,500

2,000

2,500

3,000

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

$mn

Raised

Invested


Part IIPart IIExpansion capital deals are still the most prevalent Expansion capital deals are still the most prevalent

in the Asia Pacific regionin the Asia Pacific region

Investment by Financial Stage Investment by Financial Stage •• ExpansionExpansion•• StartStart--upup•• MezzanineMezzanine•• BuyoutBuyout•• TurnaroundTurnaround•• SeedSeed

Nov 2002

LCG

Asia Pacific Asia Pacific –– Stage of InvestmentStage of Investment19991999--20012001

Source : Asian Venture Capital Journal


Asia Pacific - Stage of Investments ($bn)

-

1

2

3

4

5

6

7

Start-up Expansion Mezzaine Turnaround Buyout

199920002001

Asia Pacific Asia Pacific –– Buyout vs. Venture Capital Buyout vs. Venture Capital 19981998--20012001

Source : Asian Venture Capital Journal


Asia Buyout and Venture Capital Investment spend

-

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

1998 1999 2000 2001

$bn

BuyoutVC

Asia Asia –– Investments by Financial Stage Investments by Financial Stage Funds Under Management in 2001Funds Under Management in 2001



Investments by Financial Stage - Asia (2001 Total: $46bn)

Start-up, 21%

Expansion, 41%

Mezzanine, 8%

Buyout, 18%

Turnaround, 7%Seed, 5%

Japan Japan –– Investments by Financial Stage Investments by Financial Stage Funds Under Management in 2001Funds Under Management in 2001



Investments by Financial Stage - Japan (2001 Total: $9.1bn)

Start-up, 13%

Expansion, 47%Mezzanine, 11%

Buyout, 6%

Turnaround, 20%

Seed, 3%

Korea Korea –– Investments by Financial Stage Investments by Financial Stage Funds Under Management in 2001Funds Under Management in 2001



Investments by Financial Stage - Korea (2001 Total: $5.9bn)

Start-up, 19%

Expansion, 35%

Mezzanine, 5%

Buyout, 9%

Turnaround, 25%

Seed, 7%

China China –– Investments by Financial Stage Investments by Financial Stage Funds Under Management in 2001Funds Under Management in 2001



Investments by Financial Stage - China (2001 Total: $5.7bn)

Start-up, 33%

Expansion, 41%

Mezzanine, 8%

Buyout, 4%

Turnaround, 6%

Seed, 8%

Taiwan Taiwan –– Investments by Financial Stage Investments by Financial Stage Funds Under Management in 2001Funds Under Management in 2001



Investments by Financial Stage - Taiwan (2001 Total: $3.7bn)

Start-up, 26%

Expansion, 43%

Mezzanine, 14%

Buyout, 3%

Turnaround, 5%

Seed, 9%

Singapore Singapore –– Investments by Financial Stage Investments by Financial Stage Funds Under Management in 2001Funds Under Management in 2001



Investments by Financial Stage - Singapore (2001 Total: $9.7bn)

Start-up, 26%

Expansion, 42%

Mezzanine, 8%

Buyout, 17%

Turnaround, 5%

Seed, 2%

Hong Kong Hong Kong –– Investments by Financial Stage Investments by Financial Stage Funds Under Management in 2001Funds Under Management in 2001



Investments by Financial Stage - Hong Kong (2001 Total: $10.3bn)

Start-up, 19%

Expansion, 33%

Mezzanine, 7%

Buyout, 32%

Turnaround, 5%

Seed, 4%

Australia Australia –– Disbursements by Financial Stage Disbursements by Financial Stage Funds Under Management in 2001Funds Under Management in 2001



Investments by Financial Stage - Australia (2001 Total: $2.8bn)

Start-up, 9%

Expansion, 45%

Mezzanine, 5%

Buyout, 39%

Turnaround, 0%

Seed, 2%


Part IIIPart IIIBuyouts are approximately 1/3 of investment spend Buyouts are approximately 1/3 of investment spend

(ex(ex--Japan). Should Taiwan emerge as a buyout Japan). Should Taiwan emerge as a buyout opportunity, we estimate that a significant opportunity, we estimate that a significant increase in investment spend could then go into increase in investment spend could then go into buyout transactions. buyout transactions.

•• Global Buyout Investment in 2001Global Buyout Investment in 2001•• Major Asian Buyout Markets, 2000Major Asian Buyout Markets, 2000--20022002•• Asian Buyout InvestmentsAsian Buyout Investments•• Asian Buyout DivestmentsAsian Buyout Divestments

Global Buyout Investments Global Buyout Investments



Global Top 10 Buyout Investments by Countries in 2001

23.3

3.51.7 1.6 1.5 0.9 0.9 0.9 0.8 0.8

0

5

10

15

20

25

USA UK

France

Japan

Germany

Australia

Sweden Italy

KoreaNetherla

nds

$mn

Major Asian Buyout Investments Major Asian Buyout Investments 20002000--20022002



Major Buyout markets in Asia (US$mn)

-

500.00

1,000.00

1,500.00

2,000.00

2,500.00

2000 39.49 216.00 1,429.20 $1,656.15

2001 1,050.91 - 1,635.81 $1,292.43

2002 874.24 470.27 1,551.95 2,216.30

Australia Hong Kong Japan S. Korea

Asian Buyout Investments by CountryAsian Buyout Investments by Country19981998--20022002

Source : Asia Private Equity ReviewNote: Others include Malaysia, India, China, U.K. and Philippines


Buyout Investment Destinations (1998 - 2002/June)

0

500

1000

1500

2000

2500

3000

3500

SouthKorea

Japan Indonesia Australia Sinagpore HongKong

Thailand Others Taiw an

$mn

29 11 8 10 13 9 12 211# of Deal

Asia Buyout Divestment ProfilesAsia Buyout Divestment Profiles19981998--20022002

Source : Asia Private Equity Review, July 2002


Buyout Divestment Profiles (1998 - June 2002)Number of Companies Invested: 148

Amount Invested: US$11.4bnNumber of Companies Divested: 15

M&A , $91, 10%

Public Listings, $508, 55%

Trade Sale, $322, 35%


Part IVPart IV

•• Market Capitalization of Asian Stock MarketsMarket Capitalization of Asian Stock Markets•• Number of Listed CompaniesNumber of Listed Companies

Market CapitalizationMarket Capitalization

Source : Bloomberg, GS


Market Capitalization of shares of domestic companies in Asia, Sept. 2002 ($bn)

523

433

356

236 214

9941 31 12

0

100

200

300

400

500

600

700

Japan-TSE China-Ashare

Hong Kong -HKExMB

Australia-ASX Taiw an-TWSE Korea-KSE Singapore-SGX-ST

Thailand-SET Korea-KOSDAQ

China-BShare

2177

Number of Listed CompaniesNumber of Listed Companies

Source : Bloomberg, GS


Number of Listed Companies in Asia Stock Markets, Oct 2002

2800

2141

16621473

1215

813 689 671386

0

500

1000

1500

2000

2500

3000

US -NYSE

Japan-TSE

UK-LSE Australia-ASX

China-A&BShare

HongKong-HKEx

Korea-KSE

Taiwan-TWSE

Singapore--SGX

Asian Private Equity Picture Asian Private Equity Picture

Economy & Finance

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