Analysis >> Regulation
LPACs: Conflicts and complexity
The combination of a maturing Asian private equity landscape and a fast-emerging continuation fund opportunity is placing greater emphasis on the role of the LP advisory committee
China VC: Amicable divorces
Regulatory pressures are encouraging Chinese VC firms to end longstanding US affiliations, but the impact of impending legislation – even sight unseen – cuts deeper into investor sentiment on China
ESG backlash: Turbulent tailwinds
The strong momentum behind sustainable and responsible investment policies globally has begun to ruffle feathers in the US. Asian private equity should recognise this as a relevant warning
China: Who’s investing?
Private equity investment in China remains in the doldrums yet local investors claim to see green shoots. Where, when, and how they engage with the market is likely to differ from previous cycles
China IPOs: Back to New York
With regulatory challenges receding, Chinese companies are once again targeting US listings. But the journey to New York – in terms of approvals, locations, and valuations – isn’t necessarily smooth
Hong Kong: Action on innovation
Efforts to turn Hong Kong into a technology ecosystem are still at an early stage. Investors and start-up founders believe many of the ingredients are there, but the recipe can be flawed or ignored
Data sovereignty: Compliance complex
Deglobalisation is broadening the concept of cyber risk management from simply preventing attacks to navigating a minefield of data regulations. The pressure on PE spans investment, operations, and exits
ESG: The case for convergence
With ISSB pursuing pre-eminence in sustainability-related financial disclosures and TCFD emerging as a preferred climate framework, investors and investees will have to get more serious about reporting
Hong Kong vs Singapore: No zero-sum game
Pandemic-related restrictions have dented confidence in Hong Kong as a private equity hub, while Singapore is on a roll. But gains for one don’t necessarily translate into losses for the other
China fundraising: Onshore vs offshore
Raising capital for China strategies is difficult right now, regardless of currency, but are geopolitical forces enabling the rise of renminbi-denominated funds at the expense of the US dollar?
China semiconductor: Casualties of war
Private equity investment in China’s semiconductor industry continues unabated despite intensifying US regulatory action. While start-ups are not explicitly targeted, many are feeling the heat
China outbound: Organic options
Tough domestic competition is encouraging Chinese tech start-ups to expand overseas – often organically, earlier in their lifecycles than before, and despite regulatory concerns
US regulations: Coming to Asia
Newly proposed rules for private equity fundraising and reporting in the US are set to be applicable to any manager in Asia that raises US capital. Investors should be alert but not alarmed
China IPOs: Offshore angst
Private equity exit timelines were thrown into disarray last year when US IPOs abruptly stopped. Regulators have offered some clarity, but investors are unsure when – or if – the magic will return
Metaverse: Too concrete to ignore
As lives lived online find a virtual world to call home, investors, brands, governments, corporations, and accountants follow them in. Real estate, avatars, and new ideas are in demand. Goggles are not
2022 preview: ESG
Keeping tabs on sustainability credentials at the portfolio and company level will become more data-driven and collaborative. Eventually, getting results will require greater sacrifices
China IPOs: The star still wanes
Proceeds from private equity-backed offerings on China’s Star Market are down 75% from their peak one year ago, reflecting ongoing regulatory interference and diminished investor confidence
China regulation: Shock and awe
A raft of rules, largely targeting the technology sector, has challenged business cases and thwarted exits in China. It is also contributing to tweaks in investment strategy
North Asia IPOs: Welcome eruptions
A steady rhythm of small and mid-sized IPOs in North Asia is now being punctuated by globally noticeable events. Valuations are up, but Korean and Japanese investors are game
Southeast Asia IPOs: Opportunity knocks
A breakthrough offering in Indonesia and regulatory progress in Singapore highlight Southeast Asia’s growing viability as a tech IPO market. It’s unclear how well this is being communicated globally
Hong Kong IPOs: Winner by default
New York’s loss is expected to be Hong Kong’s gain as regulatory and political turbulence drives Chinese start-ups to look for alternative listing destinations – unless valuations become a sticking point
China e-commerce: Chaos in the community
With investor sentiment on China’s technology sector cooling, community group buying platforms are battling to conserve cash. This has done little for the government’s anti-monopoly drive
SPACs: Longer menu
As the US recovers from a glut in SPAC fundraising, Asian jurisdictions are launching their own regimes. Not every start-up is a good fit for New York. Is Singapore or Hong Kong a good fit for them?
China in six trends
Key themes in China private equity fundraising, investment, and exits