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Laxman Pai, Opalesque Asia: Greater China's private equity and venture capital (PEVC) industry AUM grew by 25% year on year to $1.78tn, of the $1.92tn total private capital industry AUM in the region, said a study.
According to the Preqin Territory Guide: Greater China 2022, venture capital AUM, which stood at $675bn (as of June 2021), grew by 34% since December 2020, proof that the asset class is expanding.
"Despite a backdrop of regulatory changes, a total of 5,611 venture capital deals were completed in 2021, up 34% year on year, achieving an aggregate deal value of $133bn, 48% more than the previous year and more than double that of 2019," the report said.
Last year's regulatory changes sent strong signals to private markets that paying attention to China's long-term, top-level policy decisions is key to investing in the region. Policy-aligned sectors include electrical equipment, IT, robotics, and new energy vehicles.
Preqin analysts also note the nationwide push toward achieving carbon neutrality by 2060, decarbonization, and ESG disclosure regulations are factors likely to spur investments in sustainability-related sectors, such as NEVs and renewable energy.
Preqin data shows 194 Greater China-focused PEVC funds closed in 2021, the lowest since 2009, but raised an aggregate of $72bn, surpassing the previous year's $50bn by 43%. Of this, venture capital raised the most capital at $25bn, or 35% of the total, followed by growth funds, which raised...................... To view our full article Click here
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