DealMarket Digest - 03

DIGEST

03

SEE WHAT’S NEW AND NOTEWORTHY IN PRIVATE EQUITY THIS WEEK /// ISSUE 03

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Increase in Indian PE Investment

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New Co-investment Vehicle for Chinese Investors

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PE Fundraising Down, Hedge Funds Up

April 8, 2011

INCREASE IN INDIAN PE INVESTMENT India attracted almost USD4 billion in private equity investment in the first quarter of 2011 across 83 transactions, according to a study by Venture Intelligence which was reported in India Info Online.

The median size of investments during the first quarter of this year was US$14.5 million, up compared to the US$11.5 million median size in the same period a year ago. The figures did not include PE investments in real estate. There is much more information about PE transactions in India in recent months including exits and transactions in the referenced article.

NEW CO-INVESTMENT VEHICLE FOR CHINESE INVESTORS Staying with the BRIC theme, news of a new private equity vehicle from financier Jacob Rothschild was widely reported. The size the fund is aiming for is USD $750 million fund and it will target China International Chamber of Commerce members and will invest in unleveraged minority stakes in companies. It is a new kind of vehicle meant to let Chinese investors invest in a range of privately owned ventures in a range of industries and sectors.

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PE FUNDRAISING DOWN, HEDGE FUNDS UP The amount raised by PE funds in the first quarter was down compared to the previous one, as well as the first quarter 2010, according to latest data from Preqin and reported in PI online. The report says 92 private equity funds worldwide closed on a total of USD42.3 billion in the first quarter. The figure was quite a bit lower than the 155 funds and USD47.1 billion raised in the fourth quarter and 142 funds and USD76.7 billion in the first quarter of 2010.

Buyout firms raised the most capital; USD12.6 billion from 20 funds. Maybe PE fundraising is down due to competition from hedge funds. It would look that based on another report in the same publication. Hedge fund investment the first quarter was up at USD 18 billion a 38% increase over the same quarter in 2010, when activity totaled $13 billion. It is the highest since the first quarter of 2007, which saw USD25 billion in activity, according to analysis by Pensions & Investments. The article is a rich source of information on commitments by institutional investors, types of funds attracting investment, and analysis.

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The Dealmarket Digest empowers members of Dealmarket by providing up-to-date and high-quality content. Each week our in-house editor sifts through scores of industry and academic sources to find the most noteworthy news items, scoping trends and currents events in the global private equity sector. The links to the sources are provided, as well as an editorialized abstract that discusses the significance of the articles selected. It is a free service that embodies the values of the Dealmarket platform delivers: Professional, Accessible, Transparent, Simple, Efficient, Effective, and Global.

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Editor: Valerie Thompson, Zurich

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