Private equity in Asia is on the march, and the drivers are
The region has suffered from the global commodity price
slump. Major businesses in key jurisdictions, such as China and
Indonesia, have entered into restructurings.
And with a wave of M&A activity triggered by
China’s outbound asset-purchasing drive,
acquisition financing among PRC buyers has taken
centre-stage. Many are partnering with private equity
firms to boost their takeover bids for overseas assets.
Meanwhile, private equity firms are cashing in on a thirst
among distressed companies, such as shipping businesses in
Korea, for fresh capital through divestment.
The recent passage of India’s first insolvency
and bankruptcy law is also expected to facilitate the
winding-up of businesses and to strengthen the rights of
foreign debt holders, potentially opening up greater
opportunities for global private equity firms to invest in the
turnarounds of ailing businesses.
With this in mind, IFLR’s poll this month asks
what will be the biggest driver behind a resurgence of private
equity in Asia:
- Reduced implicit government support in China
- India’s new bankruptcy regime
- China’s outbound M&A drive
- Increased corporate restructuring in over-capacity
Vote now on the 'Quick Poll’ menu on the right
hand side of IFLR’s
homepage. All votes and comments are anonymous. To arrange
an off-the-record interview to elaborate on your response,
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