Analysis >> Advisory
China due diligence: Nightmare scenarios
Luckin Coffee’s precipitous rise and fall is a reminder of longstanding issues around corporate fraud in China. Failing to spot problems before they emerge remains a key concern for PE investors
Hong Kong vs Singapore: Onshore overtures
Hong Kong and Singapore both position themselves as the headquarters of choice for private equity firms in Asia. But the competitive dynamics – from politics to structures – are not straightforward
Cayman fund regulation: Marginal gains
Private equity firms that use the Cayman Islands as a fund domicile are coming to terms with the realities of registration. Is the cumulative weight of increased regulation making them consider other jurisdictions?
Coronavirus & fundraising: Comfort levels
Personal contact with the manager remains a prerequisite for LPs when making fund commitments, but to what extent will recent travel restrictions change the parameters for on-site due diligence?
Coronavirus & due diligence: Split screen
Finding the right balance between offline and online communication for completing due diligence processes is a tricky endeavor for PE and VC investment professionals in Asia
Australia's mid-market: The middlemen
Pure proprietary deals are a rarity in Australia’s mid-market. Most opportunities pass through a fragmented network of advisors, which means private equity firms must get noticed to stay relevant
Coronavirus & capital calls: Time to draw?
With GPs and LPs placing a premium on liquidity, there is more scrutiny of capital call processes. Some managers are pushing for changes to documentation, but will investors relent?
Retail investment in PE: Common stock
Signs are converging that increased retail investor participation in private equity is inevitable. Myriad roadblocks around access, alignment, and infrastructure will inhibit the transition
Australia's Business Growth Fund: Policy props
The Australian government has accumulated $365 million for a fund that will support small businesses. Private equity investors are unsure why it’s necessary and how it will be managed
Due diligence & psychology: Internal audit
PE investors – whether they are putting money into companies or funds – must apply more psychologically informed tactics to remain competitive. It is the industry’s most intellectual frontier
Consumer hardware: Some assembly required
Consumer hardware is a cratered landscape in venture capital, and the risk-reward equation is not particularly well understood. New ways of looking at a traditional industry are needed
Operational due diligence: Query parameters
Institutional investors are taking a closer look at the back-office operations of fund managers in what appears to be a new normal for GP-LP relations. Service providers are circling
India guaranteed return clauses: No sure things
Guaranteed minimum return clauses, and their impact on entrepreneurs, have drawn renewed scrutiny in Indian private equity. Investors say a reassessment of their contribution to value-add is long overdue
Placement agents: Perfect partners?
Once a private equity firm selects a placement agent, they might be working hand in glove on a fundraise for the next two years. A strong mutual understanding increases the chances of a favorable outcome
Women in VC: Crashing the gates
VC firms are increasingly serious about identifying and elevating prospective female talent, but the industry’s culture has a long way to go before women can feel truly valued and contribute their best work
India IPOs: Long-term horizons
Indian PE and VC investors expect domestic and overseas public markets to become increasingly attractive exit avenues for their portfolio companies as the global macroeconomic volatility dissipates
Asia legal tech: Order in court
Legal tech investment is quietly booming from a small base, with the under-digitalized nature of law firms presenting both an opening and an inhibitor. First-mover ecosystems are self-organizing quickly
Portfolio company boards: Gurus wanted
Filling board seats for portfolio companies is more art than science in both private equity and venture capital. Investors must approach the challenge with flexible playbooks
In scope: Asian fund managers and Cayman
Asian private equity firms may start moving their fund management entities away from the Cayman Islands due to new economic substance requirements. Is Hong Kong ready to accept them?
China's foreign investment law: A level playing field?
China’s new foreign investment law appears to make life easier for overseas investors in some areas, but uncertainty remains in others. Industry participants are waiting for more details to emerge in 2020
Hong Kong tax: Playing catch-up
Hong Kong is introducing various initiatives intended to encourage private equity firms to bring more of their operations onshore. A failure to act may see Singapore emerge as Asia’s jurisdiction of choice
GP due diligence: Stones unturned
The expansion of private equity activity in developing markets is translating into greater due diligence pressure on LPs seeking reliable fund managers. Solutions are intuitive but difficult
Operational value-add: Sign of the times
Budding interest in operational value-add marks a new level of maturity in Asian private equity. Trial-and-error experimentation has progressed slower than the macro motivators
China outbound deal structure: Risk factors
Many Chinese A-share companies have wholeheartedly pursued outbound acquisitions, sometimes bringing in local PE funds for support. But integrating the target into the listed vehicle can be problematic