Sat, Oct 1, 2022
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

US private equity firms cool on China

Thursday, September 01, 2022

Bailey McCann, Opalesque New York:

US private equity and venture capital firms are making fewer investments in mainland China amid concerns about the country's macroeconomic picture, according to a new research note from S&P Global.

S&P Global Market Intelligence data shows a downward trend in M&A and new funding rounds in mainland China involving U.S. private equity companies, with second-quarter deal values dropping 78.5% year over year.

Aggregate deal value through the beginning of August was just $5.75 billion, a significant drop from $33.64 billion for all of 2021.

Investors say that the macro picture for China has changed significantly and note that tightening fiscal conditions in the country have made things difficult for companies that are still dealing with the fallout from the covid-19 pandemic. Private equity investors are also growing concerned about deteriorating exit conditions for companies where they have already made investments.

Despite these headwinds, there are some deals getting done. S&P Global Market Intelligence reports that through August 9 there had been 58 transactions amounting to approximately $2.78 billion in deal value in the technology sector. There are also some indications that Chinese regulators may be softening their stance on allowing more deal activity in key business sectors like tech. For example, regulators have given Ant Group tentative support for reviving its IPO. However, it's unclear if these moves wi......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: This European mezzanine debt strategy offers equity-like returns with downside protection[more]

    B. G., Opalesque Geneva for New Managers: Mezzanine financier SIG-i operates in a relatively uncrowded space by proactively manufacturing financing solutions as an alternative to traditional debt and equity instrume

  2. Opalesque Video: Systematic Japan strategy follows the 'Keep it Simple' rule[more]

    B. G., Opalesque Geneva: For those looking to invest in the current opportunities underlying managed futures in Japan, here is a strategy that does just that, with the benefits of leverage, shorts, Big Data, proprietary technology, and academic research on market psychology. K2Q Capital'

  3. Opalesque Exclusive: Castle Hall's DiligenceExchange free Transparency Reports cover 100 managers with $10tn of assets[more]

    Matthias Knab, Opalesque for New Managers: Managers and investors can get free access to DiligenceExchange here: https://bit.ly/DXCInfo Castle Hall, the Du

  4. Opalesque Exclusive: How blockchain is helping the small guy invest in hedge funds[more]

    B. G., Opalesque Geneva: ADDX, Asia's largest private market exchange, is on a mission to democratise the private capital markets through blockchain and smart contract technology. With these technologies, the exchange can eliminate manual interven

  5. Opalesque Exclusive: Japan quant strategy uses academia as starting point of investment research[more]

    B. G., Opalesque Geneva: Shin Samurai is a thorough systematic Japan macro strategy, which takes advantage of behavioural biases by using mathematical and statistical techniques. It also relies heavily on academic research for idea generation, and combines the said research with a deep understand