2017亚太地区私募股权融资报告（英文版）_76页_10mb

Bain & Company Global Private Equity Report 2017 Summary

Core Content Overview

This report provides an in-depth analysis of the private equity (PE) market in 2016, highlighting key trends in exits, fund-raising, investments, returns, and the evolving strategies of PE firms and institutional investors.

Main Points

1. Bain & Company's Private Equity Practice

• Bain & Company is the leading consulting partner to the PE industry.
• Their PE consulting business has grown sixfold in 15 years and now accounts for about 25% of the firm's global business.
• They serve a wide range of clients, including PE firms, hedge funds, and institutional investors such as sovereign wealth funds, pension funds, and family offices.
• Services include:
  • Deal generation: Developing investment theses and improving deal flow.
  • Due diligence: Assessing performance improvement opportunities and post-acquisition strategies.
  • Immediate post-acquisition: Strategic planning and execution to drive value.
  • Ongoing value addition: Enhancing revenue and reducing costs.
  • Exit strategies: Identifying optimal exits and preparing selling documents.
  • Firm strategy: Improving fund-raising, organizational design, and talent acquisition.
  • Institutional investor strategy: Optimizing portfolio construction and manager selection.

2. The 2016 Private Equity Market

• Despite early 2016 market volatility, the PE industry posted strong results.
• Exit activity:
  • Global buyout-backed exits declined in value (23%) and count (19%) compared to 2015.
  • However, the total value of exits ($328 billion) still marked the fourth-best year on record.
  • Exits were dominated by strategic buyers, with 67% of global buyout exits going to them in 2016.
  • The largest exits included Formula One and IDCSalud Holding.
• IPO activity:
  • IPOs declined significantly in both count (40%) and value (48%) from 2015.
  • The US and Europe saw some large buyout-backed IPOs, such as ZTO Express and Nets.
• Sponsor-to-sponsor exits:
  • These became more common due to weaker IPO conditions and investor caution.
  • Notable deals included inVentiv Health and MultiPlan.
• Follow-on sales and dividend recaps:
  • Follow-on sales totaled $79 billion, more than double the IPO value.
  • Dividend recaps were used to generate liquidity, with $7.1 billion extracted through the loan market in 2016.

3. Fund-Raising Trends

• Global fund-raising reached $589 billion in 2016, just 2% less than in 2015.
• Buyout funds raised $221 billion, up 20% from the previous year.
• Megabuyout funds (raising over $5 billion) saw a significant increase, with 11 such funds raising $90 billion.
• North America and Western Europe saw steady fund-raising, while Asia-Pacific remained stable with increased focus on China.
• Institutional investors continue to allocate capital to PE, with 95% of LPs reporting that their PE investments met or exceeded expectations.

4. Market Dynamics and Challenges

• High asset prices and limited macroeconomic growth have made deal-making more challenging.
• The financial crisis caused a backlog of deals, which are now being exited, leading to a shift in the PE industry's focus.
• Median holding periods for buyouts settled at about five years in 2016, up from the pre-crisis average of three to five years.
• Quick flips (deals held for less than three years) dropped from 44% in 2008 to 18% in 2016, reflecting longer investment horizons.

5. Institutional Investor Focus

• Bain helps institutional investors optimize their PE strategies across asset classes.
• Topics include asset allocation, portfolio construction, risk management, and governance.
• There is a growing interest in direct and co-investment opportunities.

Key Takeaways

• The PE market in 2016 showed resilience despite macroeconomic uncertainty.
• Strategic buyers dominated exit activity, with a shift from public markets to sponsor-to-sponsor and follow-on sales.
• Fund-raising remained robust, with strong demand from LPs and a rise in megafunds.
• The financial crisis backlog is largely exited, and the industry is moving toward a new normal with longer holding periods.
• Returns continue to outperform public markets, reinforcing investor confidence.
• Institutional investors remain committed to PE, with a focus on long-term value creation and strategic alignment.