Private Equity Exits in China and India - 2016.pdf

INSEAD – LGT Capital Partners Study Private Equity Exits in China and India This report was published by the INSEAD Global Private Equity Initiative (GPEI) with support from LGT Capital Partners. It was written by Michael Prahl, Senior Researcher at INSEAD and Alessandro Cannarsi, management consultant and INSEAD alumnus, under the supervision of Professor Claudia Zeisberger, Academic Co-Director of GPEI. We would like to thank the team from LGT Capital Partners Asia-Pacific for their contributions. We would also like to thank AVCJ, whose database and insights provided the foundation for large parts of this report. For further information on the INSEAD Global Private Equity Initiative, please visit /gpei Contents 1 Executive Summary 02 2 Introduction: The need for an exit study on Asian private equity 03 3 Study Design 04 4 Exit environment in China and India 05 4.1 Overview 05 China 07 India 10 4.2 Exit strategy 13 Exit channel preference 13 Exit timing 14 Holding time 16 4.3 Performance of VC and PE investments 18 PE returns compared to hurdle rates