Weekly digest - January 12 2022
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12 January 2022
COVER STORY
GPs are looking to build teams representing different genders, ethnicities, and backgrounds as LPs call for more diversity and studies suggest it leads to better decision making.
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TALKING POINTS
SCARCITY PREMIUM?
What is the price of entry to Asia’s expanding secondaries space? TPG’s IPO prospectus offers some insights.
The global GP acquired 33.3% of NewQuest Capital Partners in 2018 and progressed to 66.67% last year. The total purchase is valued at USD 494.6m. The amount paid for the initial 33.3% is not mentioned. However, on assuming control, TPG had to reassess the fair value – not the price – of the position and settled on USD 155.4m. The second tranche of 33.3% was acquired for USD 38m, comprising USD 5m in cash, interests in TPG’s holding company and other businesses, and a contingent consideration with a fair value of USD 8.4m. Since TPG first invested, NewQuest’s AUM has grown from USD 900m to USD 2.4bn, largely through Fund IV closing on USD 1bn in 2020, double the previous vintage. The NewQuest management team is incentivized to pursue scale. The contingent consideration includes a USD 5m payment if Fund V surpasses USD 1bn in fee-paying capital commitments and a further USD 5m if it surpasses USD 1.75bn. In depth:
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ANALYSIS
INDIA SPORTS: IN IT TO WIN IT
 Private equity interest in the commercialisation of sport globally is filtering through to India, with a couple of high-profile cricket deals. What other franchises and rights owners could be up for grabs?PERSONAL PROFILE
ALKA GOEL OF ALKEMI GROWTH CAPITAL
 A trail of haphazard jobs helped flesh out Alka Goel’s adventurousness and people skills before she established Indian healthcare and wellness specialist Alkemi Growth Capital.FUND FOCUS
EASTERN BELL TARGETS DIGITALISATION
 As a supply chain specialist, Eastern Bell Capital claims to have a differentiated take on China industrial digitalisation. It has USD 500m in dry powder to prove this thesis.FUND FOCUS
NORTHSTAR NAVIGATES FUNDRAISING DOLDRUMS
 Like many GPs, Northstar Group found fundraising difficult but deployment fruitful during the darkest days of pandemic uncertainty. Pausing the virtual roadshow for its latest vintage proved shrewd. |
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SEEN AND HEARD
WHAT TO WATCH
Growth in technology adoption, digitally-enabled healthcare, decarbonisation and sustainability, changing life patterns, and continued upside in Asia (especially China) are among BlackRock's private markets megatrend picks for 2022.
SEEN AND HEARD
THE PHOENIX
The rise and fall of Indian e-commerce player Snapdeal is well documented, but the company's subsequent revival has been relatively stealthy. Founder Kunal Bahl explains the thinking behind its revised business model.
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