AVCJ

Weekly digest - August 10 2022

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03 August 2022
ASIA AGTECH: WORK IN PROGRESS
COVER STORY
Global food supply issues and local economic realities are driving more capital into Asia’s agtech space, where business models are still being proven.
PROFILE
ANIL AHUJA
ANIL AHUJAAfter pioneering Indian private equity and helping launch some of the biggest movers and shakers in the region, Anil Ahuja called it quits. In some ways, the postscript has been more rewarding.
FUND FOCUS
GLY TARGETS TRANSPORTATION TRANSFORMATION
GLY TARGETS TRANSPORTATION TRANSFORMATIONGly Capital Management, which is owned by a Chinese automaker, tapped external investors for the first time in raising USD 163m for global investments in smart cities and smart cars.
DEAL FOCUS
ALLEGRO PUMPS UP IN NEW ZEALAND
ALLEGRO PUMPS UP IN NEW ZEALANDAustralia’s Allegro Funds has made its first investment from its largest fund to date, flexing new capacity to invest at scale with petrol station chain Gull New Zealand.
FUND FOCUS
INSIGNIA TAKES TWO MONTHS TO SCALE UP
INSIGNIA TAKES TWO MONTHS TO SCALE UPInsignia Venture Partners received subscriptions to its third fund amounting to twice the size of the final corpus, underlining the appeal of Southeast Asia. The GP is keen to leverage China’s talent exodus.
By the Numbers
AVCJ RESEARCH
RUMINATIONS ON SIZE
Much of the media coverage around the launch of Bain Capital’s latest Asia fund highlight how the target of USD 5bn is modest compared to the sums pursued by some of the firm’s global and pan-regional peers. This has always been the case.
Bain closed its first Asian vehicle on USD 1bn in 2007, around the time KKR made its own entrée to the region with a fund four times larger. Meanwhile, the likes of TPG Capital, The Carlyle Group, and CVC Capital Partners, which had run dedicated strategies for longer, has surpassed USD 3bn.
Over the next three vintages, Bain moved to USD 2.3bn and on to USD 3bn and USD 4.65bn, increases of 130%, 30%, and 55%. In some cases, increases reflected a broadening of the geographic remit. KKR has been far more aggressive, closing its fourth fund last year on USD 15bn. The same can be said of Carlyle, albeit to a lesser extent, while TPG and CVC have lagged somewhat.
It remains to be seen where Bain will end up on Fund V. It has yet to set a hard cap and the USD 5bn target represents institutional capital only. In Fund IV, for example, LPs contributed USD 4bn and an additional USD 650m came from employees and related parties. Moreover, it’s worth noting that fund size doesn’t prevent Bain chasing the largest deals, with plenty of global capital to drawn on.
Others in the market do not appear to be holding back, although their expectations for China investment over the next five years – a key geography for almost every pan-Asian fund – are no doubt an interesting talking point in LP meetings. Carlyle is seeking USD 9bn (up from USD 6.5bn), CVC wants USD 6bn (from USD 4.5bn), and PAG is targeting USD 9bn (from USD 6bn).
Baring Private Equity Asia (BPEA) has already collected USD 8.5bn and it is suggested it could close on as much as USD 10bn, while The Blackstone Group – on only its second Asia fund – has scaled up from USD 2.3bn to USD 6.4bn.
CHART
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
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UPCOMING EVENTS

 

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