AVCJ

Weekly digest - March 01 2023

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01 March 2023
ASIA CO-INVESTMENT: GUN-SHY LPs?
COVER STORY
Overallocation, risk aversion, and troubleshooting existing deals have prompted some LPs - but not all - to pull back from co-investment in Asia.
PROFILE
CHINA'S YUNQI PARTNERS
CHINA'S YUNQI PARTNERSIt took seven years for Yunqi Partners’ 2B investment thesis to be proven with the emergence of a swath of unicorns. The Chinese VC firm expects much more from the space – at rational valuations.
Q&A
RICK BAKER OF BLACKBIRD VENTURES
RICK BAKER OF BLACKBIRD VENTURESRick Baker, co-founder of Australia’s Blackbird Ventures, on pricing adjustments in the tech space, fundraising and secondaries, valuing unicorns, and the rise of ChatGPT.
DEAL FOCUS
INDIAN DRONE MAKER TAKES FLIGHT
INDIAN DRONE MAKER TAKES FLIGHTRecently launched Indian VC firm SphitiCap is making a high-conviction investment in local industrial drone maker Garuda Aerospace. It hopes a sizeable debut fund will help carry the start-up to IPO.
DEAL FOCUS
GOING REGIONAL TO FILL THE CODING GAP
GOING REGIONAL TO FILL THE CODING GAPNxtWave is helping India’s massive engineering community get up to snuff in much-needed software-related skillsets. This is most difficult and most rewarding in lower-tier cities.
AVCJ AWARDS 2022
DEAL OF THE YEAR - MID CAP: HONOUR LINE SHIPPING
DEAL OF THE YEAR - MID CAP: HONOUR LINE SHIPPINGNexus Point Capital secured the acquisition of Honour Line Shipping despite higher offers from rival bidders because it did its homework on the industry and established good relations with the founders.
AVCJ AWARDS 2022
FUNDRAISING OF THE YEAR - MID CAP: POTENTIA CAPITAL
FUNDRAISING OF THE YEAR - MID CAP: POTENTIA CAPITALFor Australia’s Potentia Capital, the beauty of its sophomore fundraise was not that it took four months, but that it took two years. Putting out feelers well before the official launch created buzz.
AVCJ AWARDS 2022
OPERATIONAL VALUE ADD: SONA COMSTAR
OPERATIONAL VALUE ADD: SONA COMSTARThe Blackstone Group built a leader in India’s electric vehicle components space by combining – and then re-orienting – two traditional automotive players. Not even COVID-19 could stymie its progress.
By the Numbers
AVCJ RESEARCH
THE RENMINBI QUESTION
New Zealand-based Pencarrow Private Equity has closed its sixth fund at the hard cap of NZD 300m (USD 187m), having scaled up from NZD 250m in the previous vintage. The LP base is similar to Fund V, featuring a US family office and a collection of local foundations, community trusts, and indigenous Maori financiers known as iwi groups.
The new fund is the joint largest raised for deployment in New Zealand alongside a fund-of-funds managed by NZ Growth Capital Partners. A vehicle raised by Australia-based Blackbird Ventures, which closed on NZD 275m last November, is in third.
The ranking of the top 15 New Zealand vehicles raised to date reflects the relatively concentrated pool of domestic managers: the likes of Pencarrow, Pioneer Capital, and Waterman Capital appear multiple times. One characteristic these GPs share is a propensity for cross-border expansion – recognition that the New Zealand market alone cannot offer the scale most need for critical mass.
PE investment in the country reached a record USD 5bn in 2022 – in contrast to most other Asian markets, which peaked in 2021. An intermittent stream of large-cap deals skews the headline numbers, most recently a string of telecom tower deals.
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.
The rest of the week
FUNDS
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UPCOMING EVENTS

 

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