Awards finalists – the people’s choice

If anything, the results – carefully screened by AVCJ’s Editorial Board and the panel of LP judges – are a more accurate barometer of the state of industry opinion on the private equity year since last November than ever before. And there are some interesting conclusions – as well as what look likely to be some big winners.

For one thing, in a year of steady but not inspiring deal flow, Deal of the Year showed some solid and workmanlike buyouts, with a few attractively large ticket sizes. There may have been none to rival CPPIB’s almost $5.3 billion purchase of Macquarie Communications Infrastructure Group in 2009, but Carlyle Asia and TPG Capital’s $2.36 billion Healthscope deal was already larger than one of the other iconic deals of the previous year, Kohlberg Kravis Roberts and Affinity Equity Partners’ $1.8 billion Oriental Brewery buyout. That deal, some will remember, was cited as signaling the revival of Asian buyouts post the GFC. If so, Healthscope and the other Deals of the Year should prove that solid, mainstream buyouts are fully back on the menu for the region’s well-capitalized GPs and banks.

The Fundraising of the Year category also showed resurgence in what was thought to be the worst-hit area of the regional asset class post-GFC: the pan-regional buyout model. Carlyle Asia Partners III successfully closed at $2.55 billion – after a long period, but still able to close a sizeable buyout vehicle. Navis Capital Fund VI had a similar result on a somewhat smaller scale for a slightly different control thesis. But LP excitement over China was recognized by the successful close of what had been dubbed the two funds to watch in the PRC: CDH Fund IV and SAIF Partners IV.

On the exit side, Asia Pacific private equity’s capacity to deliver returns to LPs was demonstrated by some strong public markets results in IPO of the Year, benefiting from Asia’s reviving bourses. Strikingly, though, TPG managed – albeit controversially – a profitable exit result with its Myer listing in Australia, although Oz bourses have been less receptive to listings throughout 2010. And Carlyle gave Hong Kong its second largest IPO of 2009 with its listing of China Pacific Insurance. And while overall trade sale numbers were less striking, Trade Sale of the Year saw some lucrative results, many out of Australia as GPs shunned the public markets – Loscam’s sale to China Merchants Group, Crescent Capital’s sale of National Hearing Care, and CHAMP PE’s sale of Study Group International to Providence. For sheer drama, though, the post-exit struggle between Fortis and Khazanah over Parkway Holdings made TPG’s exit – indirectly – one of the most exciting of the year.

Indeed, what a year it’s been for TPG. A nominee for Firm of the Year, the Texas titan also has Ben Gray nominated for Private Equity Professional of the Year and David Bonderman on the shortlist for the Lifetime Achievement Award. The nominations have highlighted many other strong firms, individuals, deals and performances, but for across-the-board quality and achievement, TPG may take some beating in public and the judges’ estimation, going by these results.

Not to forget the venture side, though – a solid suit of firms and an equally strong lineup for Venture Capital Professional of the Year shows that Asia Pacific VC is now a significant part of the global VC ecosystem, and engaging some of its best minds. Vinod Khosla is one, but Gary Rieschel and Sumir Chadha have also done much to help build the Asian VC sector through many incarnations, while Joe Zhou has become one of its most keenly-watched disruptive players.

Overall, if the Awards finalists are a measure of the state of the industry, Asia Pacific private equity seems well over its post-GFC doldrums and on track for further steady performance – not perhaps as spectacular as some overly optimistic Western LPs hope, but representative of a mature private equity market in the global context, enjoying strong fundamentals.

Further reading

Carlyle, TPG wrap up Healthscope for $1.73 billion

• Healthcare
• 19 Jul 2010

Affinity exits Loscam in PRC trade sale

• Australasia
• 06 Jul 2010

CDH IV final close at $1.46 billion

• Greater China
• 03 Aug 2010

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• Topics
• Performance
• LPs
• People
• Funds
• GPs
• TPG Capital
• The Carlyle Group
• KKR
• Affinity Equity Partners
• Navis Management
• CDH Investments Management
• SAIF Partners
• CHAMP Private Equity
• Benjamin Gray
• David Bonderman
• Providence Equity Partners
• Gary Rieschel
• Sumir Chadha
• Joe Zhou