Thursday’s Headlines: Private Equity Takes a Hit in Asia
The shine may be tarnishing in China. That's according to a Wall Street Journal article about how private equity is struggling in China, as well as every other Asian country. During the first half of the year, PE fund raising and deals were down for nearly every country, with fundraising dropping a whopping 23.4 percent. About 700 funds focused on the region closed during the period.
Insiders blame the tough IPO market, high valuations and the difficulty of exiting as the reasons for the drop.
Other trends include:
- China continued to dominate deals, with local currency growing to 82 percent of deals, up from 54 percent last year.
- Australia and Singapore were the only countries to defy the trend, thanks in part to lower market liquidity.
- There is an increased interest on Southeast Asia.
- KKR and TPG continue to lead in Asian-focused private equity.
Goldman scales back prime lending in Japan. [Reuters]
Private equity firm Permira will sell Valentino to Mayhoola of Qatar. [DealBook]
Fed shakeup puts J.P. Morgan oversight at risk. [NY Times]
HSBC apologizes to Senate as it braces for a $1 billion terrorism penalty. [Financial Times]
Investors committed $2.3 billion for Bain’s Asia fund. [WSJ]
Passport Capital of San Francisco is shutting down its materials fund. [Bloomberg]
J.P. Morgan plans to claw back bonuses for London execs. [Telegraph]
German authorities are investigating Credit Suisse customers for evading taxes with the help of insurance products sold by the bank. [WSJ]
Robert Duke, former Credit Suisse exec, will launch a hedge fund out of David Curtis’ Sydney-based firm, Northbridge Park. [Reuters]
Help wanted: New CEO for Barclays. [Telegraph]