Saturday, 18 February 2012

PE in emerging markets goes local - The Deal Pipeline

Last month, Chinese private equity firm Hony Capital (Beijing) Co. Ltd. trumpeted the simultaneous closing of two new funds that total $4 billion. That constituted the largest successful fundraising ever by a homegrown private equity firm not just in China but in the entire emerging-markets universe and rivaled TPG Capital and CVC Capital Partners for pulling off the biggest emerging-markets fundraising ever. "They raised the bar," says Jack Lange, a Hong Kong-based partner with Paul, Weiss, Rifkind, Wharton & Garrison LLP.

Hony's accomplishment sends several messages, and not just about China: Institutional capital to emerging-markets private equity is moving with renewed force after the global financial crisis. It is particularly flowing into indigenous private equity firms. And it is surging in a way that bolsters a select local private equity class in emerging markets, one that in those local markets begins to rival an international counterpart.

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