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2012-03-13 | All chapters

Private equity-backed companies in China outperform exchange-listed peers and deliver greater social

Beijing, 13 March, 2012 -- Private equity investments in China are paying both financial and social dividends according to the “2012 Survey on the Economic & Social Impact in China”, a study conducted by Bain & Company with the European Union Chamber of Commerce in China (European Chamber). 

The study, which largely contrasts the performance results between private equity-backed companies and publicly-listed companies with major operations in China, is a follow-up to the inaugural 2009 China private equity study, which was the first of its kind in China.  The 2012 report finds that private equity-backed companies in China outperform their publicly-financed peer group in several key areas:

·         PE-backed firms have higher salaries growth although employment growth is on par with listed companies at a rate of 8% annually

·         Investments in research & development (R&D) are two-times greater, as a percent of revenue, than their publicly-traded peers, whose R&D investments have decreased 17 percent since 2009

·         Average annual revenue growth is 2.5-times higher (34 percent two year compound annual growth rate versus 13 percent).  This is a significant increase versus 2009 when the relative difference was minor (27 percent growth rate for private equity-backed companies versus 24 percent)

·         Average annual profit growth is 50 percent higher (21 percent two year compound annual growth rate versus 14 percent).  While the overall compound growth rate is lower than what was reported in 2009 (39 percent), the relative difference in profit growth rates in 2012 was larger

·         However, when it comes to environmental initiatives, both private and public firms have opportunities to do more.  Besides, PE portfolio companies welcome more support on operational improvements from PE firms according to the survey participants.

The study finds that China continues to be the top destination for private equity investments in Asia and is on par with mature economies such as Japan and Australia/New Zealand. Private equity deal value in China reached approximately $16 billion in 2011, now representing 0.2 percent of China’s gross domestic product (GDP), up from more than $8.5 billion in 2009.  Comparable ratio seen in Europe is 0.3 percent of GDP and in the U.S. is 0.5 percent of GDP.

“Private equity is helping to fuel growth in China, particularly among small to medium-sized businesses, which are integral to China’s economy,” added Weiwen Han, a partner and leader in Bain’s private equity practice in China and study co-author.  “We have observed that revenue growth rate of smaller PE-funded firms tripled compared with similar size listed companies.”

Other findings from the study include that PE-backed firms yielded higher tax payments than their benchmarked peers even as global economic uncertainty continues, reflecting their stronger financial performance.  Also, PE-financed firmsbenefited from the PE advisers on corporate governance improvement.  Moreover, half of PE investments “Go West” and continue to contribute to the expansion of China’s domestic consumer goods and retail industry.

“Private equity in China is still young, but the social and economic benefits to China’s new business model can now be quantified by this Survey: I note in particular a stunning 65% of all PE investments made in Inland provinces, and R&D expenses that are flat 100% higher than those of listed companies”, said Andre Loesekrug-Pietri, Chair of the Private Equity and Strategic M&A Working Group. “The activity in China will certainly continue to pick up as global conditions improve, RMB-denominated funds grow and mature, and private equity firms continue to adopt best practices from around the world.”

For more information, please download the report here.

 

私募股权基金投资的中国公司相较同行业上市公司,业绩更佳、社会影响更大

北京,2012年3月13日- 根据贝恩公司与中国欧盟商会在2012年开展的联合调研《私募股权基金对中国经济和社会的影响2012年调研》,私募股权基金的投资不断为中国带来正面的经济和社会影响。

2009年,首次围绕这一主题开展的调研是中国同类研究中的先驱。2012年,二度调研仍主要比较私募股权基金投资的公司与主要业务处于中国的上市公司之间的业绩表现,研究发现私募股权基金投资的中国公司领先于同行业的上市公司,主要表现在以下几个方面:

•     私募股权基金投资的公司和上市公司的工作机会增长相持平(年增长率为8%),但前者的薪资涨幅更高

•     私募股权基金投资的公司研发投资的力度更大,其研发投资约占销售收入的2%,相当于同行业上市公司的两倍。后者同期的研发投入自2009年以来降低了约17%

•     私募股权基金投资的公司年平均收入增长率大约是同行业上市公司的2.5倍(两年期复合增长率分别为34%和13%),相较2009年两者之间仅3个百分点的差距(两年期复合增长率分别为27%和24%),有了大幅提升

•     私募股权基金投资的公司年平均利润增长率高出上市公司50%(两年期复合增长率分别为21%和14%)。尽管年增长率低于2009年报告中的39%,但2012年两者的利润增长率差距仍然较大

•     然而,在实施环保举措方面,私募股权基金投资的公司和上市公司都进展缓慢,有机会做得更多更好。同时,根据投资后公司的反馈,私募股权基金在帮助这些公司的运营提升方面尚有很大的提升空间。

调研发现,中国依然是亚洲市场中最受私募股权基金青睐的投资目的地之一,与日本、澳大利亚、新西兰等亚太地区的成熟经济体比肩。中国私募股权基金的交易金额从2009年的逾85亿美元增长至2011年的近160亿美元,如今占据中国国民生产总值(GDP)的0.2%,而在欧洲和美国,这个比重分别是0.3%和0.5%。

“私募股权基金对于中国经济的增长,特别是对其中重要组成部分的中小企业的发展有着显著的推动作用”,贝恩公司全球合伙人、中国私募股权基金咨询业务领导人韩微文说到,“我们发现私募股权基金投资的中小型企业,其销售收入的增长率已达到可比上市同行的3倍。”

本调研的其他发现包括:尽管全球经济的不确定性萦绕不散,私募股权基金投资的公司缴纳的税额相比对标的同行业上市公司更高,显现出它们强劲的财务业绩表现。私募股权基金投资的公司从私募股权合作伙伴处得到了企业管理方面的建议,令他们获益匪浅。此外,半数私募股权基金投资西部,并继续助推国内消费品和零售行业的发展。

“相对而言,私募股权基金在中国尚处于发展初期,这份报告量化了它对中国社会和经济发展、对中国新业务模式成形的积极作用。我特别注意到65%的投资流向内陆省份,而研发费用相当于同行业上市公司的两倍”,中国欧盟商会私募股权基金与战略并购工作组主席龙博望先生评论说:“目前,全球形势好转,私募股权基金公司不断引入世界各地的最佳实践,人民币基金逐渐发展成熟。在这样的背景下,私募股权基金在中国的投资交易无疑将继续增加。”

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Yichi Zhang