Private Equity

India - More PE firms to exit realty sector in 2012

Source: The Business Standard, 29 December 2011

The year 2011 saw one of the lowest investments by the private equity (PE) sector in Indian real estate at $0.85 billion (Rs 4,488 crore) and increased fund-raising activity by domestic fund managers such as Indiareit, Kotak and ASK Investment Holdings.

“We are going to see mostly focused funds – rental yield, debt or those invest in high-risk and high-return assets than general purpose funds,” said V Hari Krishna, director, Kotak Realty Fund. Fund managers say new regulations, such as the proposed rules for alternative investment funds by the market regulator and Volcker’s rule in the US that prohibits proprietary trading by banks, could impact the fund-raising activity of real estate funds in 2012.

Hong Kong - European bank retreat hits Asia private equity

Source: Reuters, 23 December 2011

Asia's private equity firms face a shrinking pool of bank loans as European lenders pull back from the region, crimping both investments and re-financings for buyout-backed companies and adding to the list of challenges the industry will meet in 2012.

In addition to tighter financing, Asia's private equity industry faces an IPO market that is virtually shut at a time when several funds are raising new money and need to exit previous investments. Of the list of obstacles the sector faces next year, a smaller loan pool is the biggest challenge.

Malaysia - CVC Capital, Johor Corp make $2.2 billion bid for Malaysia's KFC

Source: The Straits Times, 20 December 2011

London based CVC Capital Partners and Malaysia's investment arm for the state of Johor have offered 5.24 billion ringgit (S$2.2 billion) to buy fast-food chain operators KFC Holdings and QSR Brands, in what could be the largest foreign private equity linked deal in the country.

Their joint offer of 6.80 ringgit a share for QSR, the owner of KFC and Pizza Hut in Malaysia, tops an offer by United States private equity firm Carlyle Group at 6.70 ringgit.

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