AVCJ

Weekly digest - June 08 2022

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08 June 2022
CHINA SECONDARIES: LIQUIDITY PLAY
COVER STORY
Needing to generate returns amid a tough fundraising environment, GPs are beginning to revise pricing expectations to get traction with continuation funds.
Q&A
AMIT ANAND OF JUNGLE VENTURES
AMIT ANAND OF JUNGLE VENTURESSingapore’s Jungle Ventures has closed its fourth early-stage tech fund on USD 600m, shattering an initial target of USD 350m. Amit Anand, a founding partner at the firm, unpacks the achievement.
DEAL FOCUS
HIKE SUPPORTS SONG YAO'S SECOND ACT
HIKE SUPPORTS SONG YAO'S SECOND ACTOrienspace, a Chinese rocket developer founded by the entrepreneur behind DeePhi Technology, has secured USD 60m in funding from Hike Capital and others to accelerate its launch schedule.
FUND FOCUS
EURAZEO HAS SE ASIA INSURANCE TECH COVERED
EURAZEO HAS SE ASIA INSURANCE TECH COVEREDFrance-based Eurazeo has set up a USD 200m Southeast Asia VC fund dedicated to insurance technology with an unnamed global insurance company as the lone LP.
By the Numbers
AVCJ RESEARCH
TARGETING TAIWAN
The best-known set of statistics that capture the mixed fortunes of buyout investors in Taiwan begins in 2006-2007 with the territory rising to become one of Asia’s most active markets, with USD 9.4bn put to work. It ends with Taiwan retreating into relatively obscurity following the global financial crisis and hitting rock bottom in 2012 when only USD 57m was invested. It ranked 16th by transaction value in Asia.
Deal flow remains patchy, but at least one longstanding private equity gripe appears to be dissipating. Baring Private Equity Asia (BPEA) recently acquired listed contact lens manufacturer Ginko International at a valuation of NTD 27.2bn (USD 980m) – a rare instance of a private equity firm delisting a company from the Taipei Exchange.
Take-privates historically have proved challenging in Taiwan, with the government either blocking deals or withholding approval until the financial sponsor gave up. Electronic components supplier Yageo Corporation made for a controversial case study in 2011: a majority of minority shareholders accepted KKR’s buyout offer, yet the deal was vetoed – supposedly to protect minority shareholders.
KKR made a breakthrough in 2018 with the NTD 47.8bn take-private of LCY Chemical Corp. Ginko now sits alongside it as one of the largest-ever PE investments in Taiwan.
Scanning the list, it is worth noting exits can be just as problematic as investments. Of the 13 transactions of USD 500m or more in AVCJ Research’s records, six have been exited after holding periods of 7-12 years. China Network Systems, Eastern Multimedia, Ta Chong Bank, and Cosmos Bank – each one experienced multiple thwarted exit processes, with approvals often the stumbling block.
Last year, The Longreach Group agreed to sell EnTie Commercial Bank, potentially ending a 14-year journey marked by a successful turnaround and several frustrated exit attempts. Mark Chiba, group chairman of Longeach, said : “If the shareholder votes are respected, it will close. If the interests of Taiwan’s financial system are respected, it will close. What I’m fighting against is the process getting subverted by local interest groups trying to block or delay regulatory approval.”
TARGETING TAIWAN
All of the trends featured here were sourced from AVCJ's proprietary database, AVCJ Research, featuring comprehensive information on private equity deals, fundraises and exits.
The rest of the week
FUNDS
DEALS
For your calendar
UPCOMING EVENTS

 

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