Emerging Asia Data Insight 1H 2017 Kevin R. Horvath KKR Asian Fund III closed with US$9.3 billion in capital commitments in June 2017, only months after its US$5.8 billion Research Analyst first close in March. The fund accounted for 56% of the US$17 billion raised for Emerging Asia in 1H 2017 and is the largest [email protected] fund raised for emerging markets on record. The monumental fund close was not the only milestone reached in the region this year; GPs also deployed US$15 billion in the first half of 2017, the highest half-year total on record. While the number +1. 202.524.610 4 of investments completed were on par with previous half-year totals, large deals dominated the investment landscape, especially in China and South Korea. Overall, GPs completed 13 deals exceeding US$300 million in size across growth, buyout, PIPE and venture capital strategies. Larger funds and deals reflect the maturity of the private capital market in FOR MEMBERS ONLY Emerging Asia, but development is concentrated in China, India and South Korea. Conversely, GPs deployed only US$896 million in Southeast Asia, a 51% year-on-year decrease. This dip reflects an inconsistency in investor outlook for Southeast Asia, in part due to the struggle to convey a compelling regional story tying together its diverse markets. Update to Methodology: Afghanistan and Pakistan are now included in Emerging Asia, rather than MENA, regional totals. Unless otherwise specified, EMPEA’s data and statistics include private equity, private credit, infrastructure and real assets. Capital invested in 1H 2017 increased 45% from 1H 2016, Total capital invested reached US$8.4 billion in Q2 2017, while fundraising increased 29% over the same period the highest quarterly total recorded by EMPEA Emerging Asia Fundraising and Investment, 2013-1H 2017 Emerging Asia Investment by Quarter, Q3 2015-Q2 2017 $40 37 $10 400 34 35 326 324 322 307 32 $8 288 302 289 28 300 $30 262 No. of Deals 26 243 $6 219 220 210 216 22 198 186 194 $20 19 200 17 15 $4 US$ Billions US$ US$ Billions US$ 100 $2 $10 18 15 14 10 12 13 10 6.7 5.8 4.7 5.7 7.0 4.9 6.7 8.4 8.3 $0 0 $0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2013 2014 2015 2016 1H 2017 2015 2016 2017 n Funds Raised n Capital Invested 1H n Capital Invested -n- Total No. of Deals -l- No. of VC Deals KKR Asian Fund III is the largest fund raised for Emerging Pan-Asia funds, led by KKR Asian Fund III, accounted Asia on record, reaching US$9.3 billion in commitments for 62% of capital raised in 1H 2017 Emerging Asia Largest Funds Raised, 2006-1H 2017 Emerging Asia Fundraising by Geographic Focus, 2013-1H 2017 100% 7% 7% 8% 19% 7% KKR Asian Fund III 10% 7% 80% 8% 14% 11% 28% KKR Asian Fund II 34% 60% 38% 31% RRJ Capital Master Fund III 40% 61% 62% CVC Capital Partners Asia Pacific III 47% 43% % of Total Capital Raised 20% 37% MBK Partners IV 0% 7% 2013 2014 2015 2016 1H 2017 $0 $2 $4 $6 $8 $10 US$ Billions n Pan-Asia n China n India n Southeast Asia n Other Investments over US$300 million in size accounted Capital invested in China and South Korea in 1H 2017 for 53% of all capital invested in 1H 2017 is on par with 2016 full-year totals Emerging Asia Investment by Size, 2014-1H 2017 Emerging Asia Investment for Select Countries, 2H 2015-1H 2017 100% 10 10% 12% 11% 10% 8.4 7% 80% 11% 12% 8% 8 15% 11% 13% 12% 60% 6 13% 5.1 5.0 30% 26% 4.1 40% 37% 4 3.4 3.4 US$ Billions US$ 3.2 2.9 2.9 2.5 53% 1.9 20% 2 % of Total Capital Invested 34% 33% 22% 0.9 0% 0 2014 2015 2016 1H 2017 China India South Korea US$m n 300+ n 100-299 n 50-99 n 25-49 n 10-24 n <10 n 2H 2015 n 1H 2016 n 2H 2016 n 1H 2017 Click to download exhibits in Excel. © EMPEA August 2017. All rights reserved. Largest Emerging Asia Funds Achieving a Close, 1H 2017 Capital Raised, Capital Raised to Fund Manager(s) Fund Name Fund Type Geographic Focus Currency 1H 2017 (US$m) Date (US$m) KKR KKR Asian Fund III Buyout Asia USD 9,300 9,300 CITIC Capital China Partners III CITIC Capital Partners Buyout China USD N/A 1,575 (USD) Sequoia Capital Sequoia Capital India IV Venture Capital India USD 110 850 ChrysCapital ChrysCapital VII Growth India USD 250 600 CMC Capital Partners CMC Capital Partners II Growth China USD 153 600 VIG Partners VIG Partners III Buyout South Korea USD 120 600 CGN Private Equity Fund Management CGN Capital Partners Fund III Infrastructure China CNY 57 563 *Fundraising as of 30 June 2017. Most Active VC Dealmakers in Emerging Asia, 1H 2017 Most Active Private Capital (excl. VC) Dealmakers in Emerging Asia, 1H 2017 Fund Manager(s) No. of Deals Matrix Partners 37 Fund Manager(s) No. of Deals Sequoia Capital 28 Sequoia Capital 9 500 Startups 27 Aavishkaar Venture Management 8 IDG Capital Partners (IDGVC), Legend Capital, Trifecta Capital Shunwei Capital Partners 21 6 Partners Zhenfund 18 BanyanTree Finance, KKR 5 Qiming Venture Partners 14 Note: ‘Private Capital (excl. VC)’ includes private equity growth and buyout, private infrastructure and Note: VC includes seed, early-stage and late-stage transactions. private credit investments. Largest Investments in Emerging Asia, 1H 2017 Investment Investment Investment Fund Manager(s) Company Name Country ICB† Sector Type Amount (US$m) Date PAG Yingde Gases China Chemicals Buyout 1,430 May-17 Silver Lake, CDH Investments, Primavera Capital Koubei China General Retailers Growth 1,100 Jan-17 Management, Yunfeng Capital Bain Capital Hugel South Korea Pharmaceuticals & Biotechnology Buyout 831 Jun-17 Hillhouse Capital Management, Boyu Capital, CMC Capital Partners, IDG Capital Partners (IDGVC), iQiyi China Media Growth 790 Feb-17 Sequoia Capital, Xiang He Capital KKR Bharti Infratel India Mobile Telecommunications PIPE 654 Mar-17 MBK Partners Modern House South Korea General Retailers Buyout 624 May-17 DST Global, Atomico, CITIC Private Equity Funds Ofo China Travel & Leisure Venture Capital 450 Mar-17 Management, Matrix Partners TPG Kakao Mobility South Korea General Retailers Buyout 437 Jun-17 Notable Exits and IPOs in Emerging Asia, 1H 2017 Year(s) of Capital Invested Transaction Country Company Name Fund Manager(s) ICB† Sector Investment (US$m) Date Exit and Return Detail Strategic sale to Avery Dennison totaling Household Goods & China Yongle Tape ShawKwei & Partners 2012 49 Jun-17 US$262m, including an initial payment of Home Construction US$205m and a cash dividend of US$57m Share sale of 25% stake on Bombay Stock India Capital First Warburg Pincus Financial Services 2012, 2014 73 May-17 Exchange generated reported return of INR 17.7B (US$276m) IPO on Korea Stock Exchange raised KRW1.1T South Korea ING Life Korea MBK Partners Life Insurance 2013 830 May-17 (US$974m); entire 31% stake sold via IPO held by MBK Daesung Industrial Goldman Sachs Merchant Secondary sale of 60% stake to MBK Partners South Korea Chemicals 2014 400 Apr-17 Gases Banking Division (MBD) for KRW532B (US$476m) Management buyout generated INR5.25B India CavinKare ChrysCapital Consumer Goods 2013 44 Mar-17 (US$79m) Pactera Technology Software & Computer China The Blackstone Group 2014 240 Jan-17 Stategic sale to HNA EcoTech for US$675m International Services † The Industry Classification Benchmark (“ICB”) is owned by FTSE International Limited (“FTSE”). “FTSE®” is a trademark of the London Stock Exchange Group companies and is used by FTSE under license. 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