Weekly digest - February 01 2022
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01 February 2023
COVER STORY
India saw abundant exits last year as other markets stumbled. Investors must assess the merits of various contributing cyclical and structural factors.
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Q&A
PANKAJ MAKKAR OF BERTELSMANN INDIA
 Pankaj Makkar has headed Bertelsmann India Investments since its inception in 2012. He reflects on a period of rapid market development with a new war chest that betrays confidence in more to come. DEAL FOCUS
NEWLINK DOUBLES DOWN ON NEW DIRECTION
 Having established itself in China’s gas station services space, Newlink Group embraced the electric vehicle opportunity when it arrived. A spinout, reverse merger, and more capital were the result.DEAL FOCUS
INVESTORS BACK CAPITAL SQUARE, BASIL MERGER
 Capital Square Partners and Basil Technology Partners have joined forces, with HarbourVest Partners, NewQuest Capital Partners, and Committed Advisors backing a USD 700m fund comprising Asia IT services investments from both GPs.DEAL FOCUS
ORCHESTRA SEEKS RIGHT RECIPE FOR KFC KOREA
 Having secured permission to do sub-franchising and to make alterations to menus and store formats, Orchestra Private Equity believes it can succeed with KFC Korea where others failed. |
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By the Numbers
AVCJ RESEARCH
LOVE ME TENDER
Bain Capital has plenty of experience taking control of listed Japanese companies, participating in at least 10 such deals – chiefly via tender offers – over the past decade. The firm laid down a marker for 2023 by winning board endorsement for a buyout of marketing services business Impact HD. It also exited online advertising player Net Marketing via a trade sale barely four months after completing a tender offer.
Prior to 2016, private equity seldom featured in such transactions in Japan. However, more than 20 have been announced since 2020 with aggregate value exceeding USD 21bn, according to AVCJ Research. They are increasingly a feature of corporate carve-outs, whereby the PE investor agrees to buy the parent company’s stake in a listed subsidiary and then launches a tender offer to take out other shareholders – the 2021 total topped USD 10bn largely because Bain took this approach with Hitachi Metals. Some situations arise specifically because companies are listed – such as deals arising from activist investor pressure – but ultimately tender offers are a mechanism. The Impact HD opportunity emerged because the majority shareholder realised that external capital and expertise were required to drive growth and sought a PE partner. 
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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UPCOMING EVENTS
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