Weekly digest - November 23 2022
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23 November 2022
COVER STORY
With ISSB and TCFD pursuing pre-eminence in financial disclosure for sustainability and climate, GPs must get more serious about reporting.
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TALKING POINTS
AVCJ AWARDS - AND THE WINNERS ARE...
Advantage Partners, Affinity Equity Partners, Baring Private Equity Asia, The Blackstone Group, CDH Investments, Five V Capital, Future Capital, L Catterton, Nexus Point Capital, Pacific Equity Partners, Potentia Capital, Quadrant Private Equity, Qiming Venture Partners. See here for more information.
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Q&A
ADRIAN LI OF AC VENTURES
 Adrian Li, founder and managing partner of Indonesia-focused AC Ventures, on Chinese incursions into Southeast Asia, localisation versus scale, the prospect of a protracted downturn, and being an Ironman.ANALYSIS
SPORT INVESTMENT: CHINA FADING
 Once a white-hot investment theme in China, and for Chinese investors looking overseas, sport has slipped into obscurity amid concerns about regulation and monetisation.DEAL FOCUS
KKR AGREES FIRST AUSTRALIA GROWTH TECH DEAL
 KKR has led a USD 68m Series B round for Australia’s Advanced Navigation, an autonomous systems developer for robots and vehicles used everywhere from the freeway to orbit.ANALYSIS
AVCJ FORUM 2022 SPECIAL ISSUE
 How LPs are hardening selection criteria amid macro uncertainty; why investors are flocking to sports and entertainment deals; concerns about the prospects for US dollar funds in China; Q&As with CPPIB, BlackRock, and Northwestern University. |
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By the Numbers
AVCJ RESEARCH
APPETITE FOR DEPLOYMENT
“Two years ago, part of your life was going after the hottest company in the most aggressive way begging the entrepreneurs for a piece of the allocation,” Tony Jiang, co-founder and a partner at Ocean Link, told the AVCJ Private Equity & Venture Forum.
“There was very little room to negotiate on valuations and very little respect for investors. Fundraising was relatively easy, but then doing deals was actually very difficult and to some extent pretty scary. Today, I think it's almost the opposite." Other investors chimed in with observations that valuations do not reflect the longer-term fundamentals of China’s economy on an absolute or relative basis compared to other economies. Put simply, they are keen to deploy capital because the drop in valuations has made China attractive, despite economic challenges, regulatory uncertainty, and the government’s apparent resolve to pursue zero-COVID policies. Nearly USD 58bn has been invested in China year-to-date, down from USD 129.2bn in 2021 and USD 103.2bn in 2020. The average for the prior eight years is USD 87bn. Technology is the biggest loser, having received USD 21.9bn so far this year, compared to USD 59.3bn in 2021. It is the least since 2014. Healthcare is also down by more than half, which is consistent with public market selloffs in the sector globally. Capital appears to be gravitating towards tangible assets. Over USD 9.3bn has been pumped into transportation and distribution in 2022, putting it within touching distance of healthcare as the second-largest sector. The 2021 total was USD 8.6bn. Meanwhile, manufacturing has stolen third place, having risen from USD 1.7bn to USD 6.6bn. 
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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For your calendar
UPCOMING EVENTS
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