Is China's Stumble Enough to Attract U.S. Private Equity?
September 14, 2015
The economic slowdown and subsequent public market turmoil in Greater China has gripped financial media over the past few months. Chinese central bankers have taken significant strides to place support under falling equity prices, yet the volatility has continued. As all too familiar, the U.S. underwent its own volatility during 2007-2008, and while that downturn was caused by different forces, the decline in public equity prices triggered a rush of PE capital to help support cash-starved businesses.
Click to explore the data in the PitchBook Platform
Looking at U.S. PE activity in Greater China, completed deals in the region declined over 46% between 2010 and 2014, according to the PitchBook Platform. Last year saw 28 such transactions, and 2015 isn't on pace to match that number. The decline isn't too alarming, though, as attractive investments in the U.S. kept most firms happy to deploy capital domestically. With increased volatility, however, it also shouldn't come as a surprise to see activity begin to creep higher over the next 12 months.
PitchBook Platform users can access our data on U.S. PE investment in Greater China by clicking here. Interested in the investors active in the region? Contact us today to learn more.