Weekly digest - August 31 2022
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31 August 2022
COVER STORY
The expansion of Japan’s middle-market PE scene has lagged global LP interest. Competition is inducing GP formation, but impediments are myriad.
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TALKING POINTS
AVCJ AWARDS 2022 - SUBMIT YOUR NOMINATIONS
Industry participants have until September 22 to put forward firms, fundraises, investments, and exits they believe worthy of consideration. For more information, go to www.avcjforum.com/awards.
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GP PROFILE
CHINA'S CMC CAPITAL
 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
JAPAN CARVE-OUTS: IMPROVING THE OLD
 Private equity investors are keen to acquire mature but unloved assets from Japanese corporates and reposition them for growth. Execution is seldom straightforward, and size often means complexity.FUND FOCUS
FUNDAMENTuM FINDS ITS NICHE
 As one of few Series B and C specialists operating in India, The Fundamentum Partnership expects to have plenty to choose from over the next two years as the glut of early-stage start-ups thins out.FUND FOCUS
CHERUBIC CONTINUES TO SCALE
 Early-stage investor Cherubic Ventures initially struggled to get traction with its idiosyncratic Greater China-US strategy, but the firm sees its USD 110m haul for Fund V as validation of the thesis. |
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By the Numbers
AVCJ RESEARCH
NOWHERE TO HIDE
A recent bailout of Secoo Holding – a China luxury goods retailer that has filed for bankruptcy in local courts and faces a blizzard of contract disputes – once again highlights the plight of US-listed Chinese tech companies. It comes as grocery delivery platform Miss Fresh went into partial shutdown after its bailout failed to materialise.
Both companies have faced challenges – some specific to them, others common to many consumer-facing internet businesses – and these have played out in the public eye through regulatory disclosures and depressed stock prices. As of August 28, Secoo was trading at USD 0.33 and Miss Fresh at USD 0.12. AVCJ Research has records of 66 private equity-backed Chinese technology companies listing in the US since 2017. Only five are trading at a premium to their IPO price; four have managed to maintain the discount within 50%; and 10 have sunk below USD 1.00. Two more have been taken private and one has been compulsorily delisted. How much more pain is to come? 
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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