Native Institutions Rising in PE Ranking

2012-04-27

Since 2007, Zero2IPO Group officially has ranked the performances of domestic and overseas PE firms in China, and released China’s Top 30 PE Firms through comprehensive considerations of capital quantity, fundraising, investment and delisting. As can be seen from the ranking over the past five years, some appeared on the list once, and some have remained on the list. China’s PE market competition pattern is making a radical change. 

7 institutions have remained on the list in five consecutive years

Since Zero2IPO Group released the first ranking of the PE firms since 2007, 69 institutions have ranked top 30. As far as times of listing are concerned, 33 PE firms appeared on the list once, accounting for 47.8%; 11 PE firms twice, accounting for 15.9%, 13 PE firms 3 times, accounting for 17.4%, 6 PE firms 4 times, accounting for 8.7% and 7 PE firms 5 times, accounting for 10.1%. The institutions which have remained on the list in 5 consecutive years are KKR, Bain Capital, CDH Investments, Goldman Sachs Group Direct Investment Department, Hony Capital, Warburg Pincus and New Horizon. 

As far as types of PE firms are concerned, foreign institutions were dominant in China market before 2009, ranking top 10 with the proportion of 90.0% and 80.0% respectively. Since then, foreign institutions had been battered by the financial crisis, while China economy got out of the trouble rapidly. Additionally, some policies for the second-board market were good. Therefore, RMB fund entered its explosive development stage, and native institutions rose sharply. In 2009 and 2010 rankings, number of the native institutions was almost the same as that of the foreign institutions. In 2011 ranking, number of the native institutions, up to 7 ones among top 10 PE firms, was more than that of the foreign institutions.

14 evergreen institutions have ranked top 30 in 5 consecutive years

As can be seen from the lists during 2007 and 2011, 14 institutions had remained on the lists, including KKR, Baring Private Equity Asia, Bain Capital, Temasek Holdings, TPG, CDH Investments, Goldman Sachs Group Direct Investment Department, International Finance Corporation, Hony Capital, Tiger Fund, Warburg Pincus, Morgan Stanley Asia Investment, Prax Capital and New Horizon. Moreover, in the lists during 2007 and 2011, due to their excellent performance in fundraising, investment and delisting, 4 institutions were awarded “Best PE Firm”: CDH Investments in 2007 and 2009, Hony Capital in 2008, CCB International in 2010 and Jiuding Capital in 2011. Moreover, the above-mentioned 4 institutions have ranked top 10.