Chinese Outbound Private Equity On The Rise

Chinese buyout frenzy

Outbound private equity investments from China into North America and Europe have been growing rapidly.

According to the investment bank Houlihan Lokey, in H1 of 2012, the outbound Chinese private equity transaction value was US$219M. Since then, Chinese private equity firms have drastically increased their offshore spending and recorded total transaction value of US$5,8B and US$7.4B in the first half of 2015 and 2016 respetively. While in 2012 and 2013, the rest of Asia played a more dominant role in outbound investments in terms transaction value, since 2014, China has been carrying the torch. In H1 of 2016, Chinese buyout funds and venture capital firms invested almost six times as much on foreign targets compared to the rest of China.