Weekly digest - August 17 2022
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17 August 2022
COVER STORY
A renewable energy surge is expected in the wake of Asia's various net-zero commitments. Investors are bullish on the macro but cautious on the detail.
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SPECIAL ISSUE: ENERGY TRANSITION
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Q&A
DANIEL CHENG OF BROOKFIELD ASSET MANAGEMENT
 Brookfield Asset Management recently raised USD 15bn for a fund dedicated to global energy transition. Daniel Cheng, a managing director with the firm in Shanghai, maps out likely deployment.ANALYSIS
ALTERNATIVE FUELS: BURNING QUESTIONS
 From the landfill to the inside of atoms, the alternative fuels angle on energy transition gives investors a range of risk profiles to consider. Developed economies are the primary playgrounds.CASE STUDY
ENERGY TOWNGAS
Towngas Smart Energy wants to offer solar solutions to its gas customers in China’s industrial parks. Affinity Equity Partners is supporting the rollout.
CASE STUDY
CRYPTO: EKTA
Crypto is an energy-guzzling industry. Bitcoin alone is estimated to consume 150 terawatt-hours of electricity a year, which is equal to Argentina.
ANALYSIS
MOBILITY: BATTERIES AND BEYOND
 The electrification of transportation has created a wealth of opportunities in energy saving and storage. Investors across Asia – led by China – are looking at batteries and other technologies.CASE STUDY
COSMETICS: AXILONE
Energy accounts for a relatively small portion of packaging producer Axilone’s costs, but rising prices in Europe prompted Trustar Capital to accelerate transition efforts.
CASE STUDY
LOGISTICS: GLP
GLP’s sprawling warehousing and transport interests offer a unique view of energy permeating the logistics value chain. Tech and common sense are the primary maintenance tools.
ANALYSIS
ENERGY START-UPS: DISENCUMBERING INCUMBENTS
 Digital start-ups play a crucial role in energy transition and therefore represent a significant investment opportunity. The best approaches consider human nature and social themes as well as widgets.CASE STUDY
HEALTHCARE: HERMINA AND AIG
Healthcare is not a particularly energy-intensive industry, but specialists such as Quadria Capital are tightening up operations where possible at hospitals.
CASE STUDY
MANUFACTURING: BEYONICS
Precision manufacturer Beyonics has cut back on trucking, switched to gas-fired power, and automated factories – in the pursuit of efficiencies, not as part of a specific energy agenda.
ANALYSIS
DATA CENTRES: SEEKING SUSTAINABILITY
 With data driving increasing amounts of business activity, companies are paying more attention to energy sourcing and consumption at the facilities tasked with processing this information.CASE STUDY
CONSUMER PRODUCTS: THE ARNOTT'S GROUP
Having acquired Australian snacks producer The Arnott’s Group under its long-dated strategy, KKR hopes to make an enduring impact through a sustainability agenda.
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By the Numbers
AVCJ RESEARCH
EV AND THE REST
PE investment in Asian ecology, cleantech, and renewables used to be characterised by infrequent big bets on wind and solar. This included a pre-global financial crisis surge in China driven by low-cost local manufacturing and foreign subsidies.
The landscape shifted in 2016 when investment surpassed USD 5bn for the first time. A year later, it topped USD 10bn and stayed there - the annual average for 2017-2021 is USD 10.5bn. It is another China-centric story, built initially on electric vehicles (EV) and then stretching along the EV value chain. Having historically played second fiddle to renewables, cleantech was the dominant category in four of the last six years. 
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.
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The AVCJ Weekly Digest will skip an issue next week. It returns on August 31.
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