“Private equity funds invested at high valuation facing trouble”
“Investment outlook deteriorating… Conditions for investment recovery not likely to improve in the near future”
“70% or $59B of all internet and high-tech investment in Asia Pacific last year went to China”
Bain&Company warned Chinese internet and high-tech bubble was about to burst in its Asia Pacific Private Equity Fund Annual Report released in March 15.
The South China Morning Post ran an article on the report on March 15, which pointed out many private equity funds invested in Chinese internet and high-tech stocks at a high valuation over the past five years and they are stuck with them now.
The report also commented investment outlook was also deteriorating.
Yang Kiki, a partner and regional co-head of Asia Pacific private equity practice at Bain&Company, said in the report that “Efficient exit from the Chinese internet and high-tech sector will likely become more difficult… as they invested at the peak… Conditions are unlikely to improve to recover the massive investment in the near future”.