AVCJ

Weekly digest - November 02 2022

avcj-221102cvr-72
  • AVCJ
  • LinkedIn  
  • Google plus  
  • Save this article  

 

02 November 2022
SPORT INVESTMENT: INTO THE VALUE CHAIN
COVER STORY
Investors are drawn to the structural nuances, sticky customer bases, and long tail of opportunities that exist in sports. Asia’s role is small but growing.
Q&A
WEI ZHOU OF CHINA CREATION VENTURES
WEI ZHOU OF CHINA CREATION VENTURESWei Zhou, founder of China Creation Ventures (CCV), on why local GPs are targeting Southeast Asia, working with Chinese entrepreneurs overseas, and the prospects for renminbi and US dollar funds.
FUND FOCUS
BPEA CREDIT SPINS OUT, CLOSES FUND III
BPEA CREDIT SPINS OUT, CLOSES FUND IIIBaring Private Equity Asia's credit unit has entered a new phase as an independent manager with a fund more than three times larger than the previous vintage.
DEAL FOCUS
NSSK BUILDS OUT DRUGSTORE EMPIRE
NSSK BUILDS OUT DRUGSTORE EMPIRENSSK found a rare succession-driven special situations deal in Japan’s prosperous healthcare space with pharmacy operator Kraft. It is the eight-year-old private equity firm’s largest deal to date.
DEAL FOCUS
REAP LOOKS BEYOND HONG KONG
REAP LOOKS BEYOND HONG KONGHaving proved its business model and build up a customer base in Hong Kong, small business credit specialist Reap will use part of its USD 40m Series A round to pursue international expansion.
By the Numbers
AVCJ RESEARCH
SOLID DOWN UNDER
Asia buyout activity has dropped sharply in 2022 as private equity firms struggle with macroeconomic uncertainty, geopolitical concerns, and rising financing costs. Approximately USD 55.3bn has been deployed to date, ahead of the 12-month total for 2020 but well short of the 2021 mark.
Every significant market has retreated, but the impact on Australia and New Zealand has been less pronounced. Together, they were responsible for 34% of regionwide buyouts in 2021, in US dollar terms, a few percentage points above the average for the prior eight years. In 2022, it’s 44%.
Several more deals have been announced in the last few days, including TPG’s AUD 2bn-plus (USD 1.3bn) acquisition of iNova Pharmaceuticals, BGH Capital and Sixth Street Partners’ NZD 1.54bn (USD 933m) take-private of donor management business PushPay, and a AUD 483m acquisition of listed enterprise service player Elmo Software at a valuation of AUD 483m.
As far as the publicly listed companies are concerned, the GPs might have been tracking them for some time, conducted rudimentary due diligence, and be lying in wait for the stock price to reach an appropriate level. Similarly, this is the third time iNova has ended up with private equity, so the asset is reasonably well known.
If familiarity underpins conviction, perhaps stability enables persistence. While securing deal financing in the US remains difficult, private equity have a variety of options in Australia and New Zealand (which are supported by roughly the same lenders).
For example, the iNova deal was supported by three global credit investors (HPS Investments Partners, KKR Credit, and Barings Private Credit), one local investor (Metrics Credit Partners), and a couple of Asian banks (HSBC and Nomura), Debtwire, AVCJ’s sister publication, reported.
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.
For your calendar
UPCOMING EVENTS

 

  • LinkedIn  
  • Google plus  
  • Save this article  

More on Region

Latest News

world-hands-globe-climate-esg
Asian GPs slow implementation of ESG policies - survey

Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...

  • GPs