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December 24, 2011

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PE sector to weaken

AFTER surging in the first nine months of this year, as an alternative source of funding, China's private-equity sector is likely to see growth slow in 2012 amid a cooler economy, an industry report said yesterday.

Venture capital and PE firms raised funds worth US$28 billion in the first three quarters of this year, more than the US$26.9 billion in 2010, PricewaterhouseCoopers said.

But it noted that PE and VC firms are likely to experience a "much slower" growth in fundraising in the fourth quarter of this year. The weak trend may continue in 2012 amid weaker economic growth, a sluggish stock market and tighter rules on the sector.



 

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