Private equity is booming in Asia and many of these investments are being made through offshore vehicles. Frances Woo, Judy Lee and Tiffany Chan explain how offshore funds are being used in Asia’s private equity industry

The year 2006 saw a record level of private equity deals in Asia, further reinforcing the trends established in 2005. Up to the end of 2006, the transaction total in the Asian private equity industry amounted to $50.7bn (£25.3bn), an increase of an astonishing 206% from 2005.