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Weekly digest - June 29 2022

Weekly digest - June 29 2022
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29 June 2022
CHINA BIOTECH: END OF THE BOOM
COVER STORY
Private equity investment in China biotech has collapsed amid failed IPO processes and disputed valuations, though pockets of activity remain.
PORTFOLIO
WELKIN CAPITAL AND CHINA'S SHAWYA
WELKIN CAPITAL AND CHINA'S SHAWYAShawya is a fast-rising Chinese direct-to-consumer brand that takes a technology-driven approach to skincare. Welkin Capital is helping it address growing pains around talent and omnichannel capabilities.
FUND FOCUS
LGT EYES A BUYING OPPORTUNITY
LGT EYES A BUYING OPPORTUNITYLGT Capital Partners starts deploying its USD 1.65bn Asia fund-of-funds, it hopes that rationalising valuations and some consolidation of GP relationships will contribute to a strong vintage.
DEAL FOCUS
CONFIDENCE UNWAVERING IN SE ASIA E-COMMERCE
CONFIDENCE UNWAVERING IN SE ASIA E-COMMERCESingapore online shopping platform ShopBack hopes to extend a fledgling theme of Southeast Asian IPOs in the US amid threats to discretionary spending in its core markets.
FUND FOCUS
RE-UPS UNDERPIN FOUNTAINVEST'S FUND IV CLOSE
RE-UPS UNDERPIN FOUNTAINVEST'S FUND IV CLOSEDespite headwinds that have afflicted all China-focused managers, FountainVest Partners closed its fourth fund just above target on USD 2.9bn. One-third of the corpus has already been deployed.
By the Numbers
AVCJ RESEARCH
FALLOUT FROM THE SELLOFF
Approaching the halfway point of 2022, early and growth-stage investment in Asia's technology sector stands at USD 41.9bn – far off the record pace set in 2021 but comfortably ahead of the two, less extraordinary, prior years.
Meanwhile, the geographical realignment continues. China routinely accounted for three-quarters of minority equity commitments to the sector until last year, when its share fell to 38% on the back of significant regulatory uncertainty. India and Southeast Asia came to the fore, with 32% and 16%, respectively. It's much the same for 2022 to date: China 36%, India 32%, Southeast Asia 15%.
More telling – and still provisional – are the numbers for the second quarter, which coincided with the global sell-off in technology stocks. Just over USD 15bn has been deployed, down from USD 26.3bn in the first quarter. Unsurprisingly, growth-stage investment saw the biggest decline, falling by more than half to USD 7bn.
China has plummeted from USD 11.2bn to USD 3.8bn, India from USD 8.1bn to USD 3.4bn. Yet Southeast Asia has demonstrated some resilience – across early-stage and growth transactions – rising from USD 2.8bn to USD 3.4bn. E-commerce has been prevalent in the past week, with the likes of RPG Commerce, ShopBack, and OnPoint all closing new funding rounds.
BEAUTY PARADE
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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