AVCJ

Weekly digest - July 20 2022

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20 July 2022
ASIA LOGISTICS COST AND COMPLEXITY
COVER STORY
Investment opportunities are expected to emerge as companies look to technology as a means of easing inflationary pressure on supply chains.
GP PROFILE
INDONESIA'S FALCON HOUSE PARTNERS
INDONESIA'S FALCON HOUSE PARTNERSFalcon House Partners is one of the few survivors in Indonesia’s promising but challenging middle-market private equity space. Being hands-on is part of the secret.
DEAL FOCUS
SJL FILLS KOREA'S CROSS-REGIONAL GAP
SJL FILLS KOREA'S CROSS-REGIONAL GAPSteve Lim launched SJL Partners to help Korean corporates pursue M&A in the US and Europe, having seen global GPs pass on such opportunities. Meridian Bioscience is the latest addition to the portfolio.
FUND FOCUS
LIGHTSPEED RAMPS UP IN INDIA, SOUTHEAST ASIA
LIGHTSPEED RAMPS UP IN INDIA, SOUTHEAST ASIALightspeed Venture Partners is leaning hard into developing Asia with long-range vision, added operational resources, and a new USD 500m war chest.
DEAL FOCUS
SEEING LIGHT AT THE END OF THE COVID-19 TUNNEL
SEEING LIGHT AT THE END OF THE COVID-19 TUNNELTaiwan travel start-up KKday continues to raise capital seemingly on its own terms despite flights remaining largely grounded. It expects a boom toward year-end and near-normalcy in 2023.
By the Numbers
AVCJ RESEARCH
ASIAN OUTPOSTS
Where is the optimal location for a global LP’s Asian base of operations? This question has been asked numerous times as Canadian pension plans, typically driven by a desire to put more money into private markets and have more direct exposure to assets, have put down roots here.
Alberta Investment Management Corporation is about to join the party, with Peter Teti, the group’s head of private equity, explaining why Singapore was chosen over Hong Kong. There were two key points: Hong Kong is too close to mainland China and associated geopolitical issues; and Singapore is the best place to execute a truly pan-Asian strategy rather than one skewed towards China.
It further stirred ongoing debate about Hong Kong’s future as a regional financial hub and how China’s role in the portfolios of large global institutional investors may change.
The reality is that these decisions can be idiosyncratic, determined by the resources and risk appetite of individual pension plans. Canada Pension Plan Investment Board (CPPIB) has 20x the assets of OPTrust and employs several times as many people. It has offices in Hong Kong, Mumbai, and Sydney. OPTrust is only in Sydney.
The distribution of Asian portfolios across different private asset classes and the key geographies for co-investment are also factors. If North Asia is likely to generate a lot of co-underwriting opportunities, it might be easier to work out of Hong Kong. If direct investments in mature infrastructure feature strongly, an Australia base makes sense.
And then some LPs, like British Columbia Investment Management, seek meaningful Asian exposure, including co-investment, without venturing far from home. They believe a cohesive investment culture shouldn’t be risked for the sake of convenience.
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
LPs
DEALS
For your calendar
UPCOMING EVENTS

 

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