Pvt equity investment rises 55% in H1

India was witness to a 55 per cent growth in private equity investment in the first half of 2005, in sharp contrast to Asia-Pacific countries (excluding Japan, including Australia), where investments for the same period plummeted by about 48 per cent.

According to Thomson Venture Economics, India private equity investors pumped in $333.5 million (about Rs 1,450.72 crore) in the first half (H1) of 2005 compared with $214.4 million (about Rs 932.64) in H1 2004. The investments came through 24 deals across 23 companies.

Private equity investments in Asia Pacific (excluding Japan, including Australia) dropped to $2.2 billion during the first half, down by 47.7 per cent from 4.2 billion of volumes recorded in the same period last year. A total of 116 companies received private equity investments in 117 rounds of financing during the first six months, the report said.

The fall private equity investments in Asia-Pacific during the first half was primarily owing to volume reduction in South Korea, despite buyout funds attracting a flood of new capital in the region.

South Korea, which came in at No 4 just after Australia, China and India, witnessed the sharpest fall among the Asia Pacific countries. Private equity investment in South Korea was $222 million from $2.77 billion a year ago. In fact, South Korea was the main reason for the regional fall in investment.

India took the No 3 spot in the list of the most preferred destination, after Australia and China. Countries that trail India in the list are South Korea, Singapore, Hong Kong, Malaysia, Thailand, Vietnam, New Zealand, Taiwan, Philippines and Pakistan.

Australia received the largest share of private equity investments in the region during the first six months, totalling $618.5 million, more than double the $277.7 million raised in the corresponding period of the last year. China was the second most attractive market, collecting $598.4 million for 25 companies.

Australia's Emeco International secured $351.5 million in a leveraged buyout completed in January (announced in late 2004), which was the largest recorded transaction during the period.

Private equity investors GS Private Equity and Pacific Equity Partners provided funding in this deal. The second largest transaction was a private investment in a public entity worth $350 m arranged for Chinese PC manufacturer, Lenovo Group.