AVCJ

Weekly digest - April 05 2023

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05 April 2023
GULF GAMBIT: ASIA GPs COURT MIDDLE EAST LPs
COVER STORY
Asian managers hope that macro trends work in their favour when fundraising in the Middle East. Being the right size and the right strategic fit also helps.
PROFILE
HANS CHRISTIAN JACOBSEN OF PENM PARTNERS
HANS CHRISTIAN JACOBSEN OF PENM PARTNERSHans Christian Jacobsen’s emerging markets experience spans Africa, Asia, the Middle East, and Eastern Europe. He ended up finding an appealing blend of growth, access, and stability in Vietnam.
DEAL FOCUS
GOLDMAN SECURES $1B EXIT FROM INDIA'S RENEW
GOLDMAN SECURES $1B EXIT FROM INDIA'S RENEWGoldman Sachs has clocked a healthy return from ReNew Energy Global after helping the company diversify its offering and navigate the regulatory pitfalls of India’s renewables space.
DEAL FOCUS
HONG KONG'S GRYFYN ISSUES WEB3 PASSPORT
HONG KONG'S GRYFYN ISSUES WEB3 PASSPORTGryfyn, the latest project from Hong Kong’s Animoca Brands, has attracted several VC investors, most of which are not existing backers of its parent. The mission is simple: expand the metaverse.
DEAL FOCUS
QIMING BETS ON RESILIENCE IN CHINA'S COFFEE SPACE
QIMING BETS ON RESILIENCE IN CHINA'S COFFEE SPACEQiming Venture Partners has doubled down on Chinese coffee brand Tasogare, identifying a consumer category endowed with rare advantages and poised to benefit from a broader domestic retail rebound.
The AVCJ Weekly Digest will skip an issue next week. It returns on April 19.
By the Numbers
AVCJ RESEARCH
CHINA BLUES
“If you’ve a venture capital manager in China and you’re not Sequoia, Qiming, or Matrix, your hit rate is going to be one in 1,000 right now. It’s almost not worth it,” said one placement agent in a sobering assessment of the fundraising environment.
A lot of China GPs are said to be reviewing their fundraising targets. They include Hopu Magnolia, a growth capital unit of Hopu Investment Management, which has scaled back its ambitions from USD 450m to USD 250m. Hopu Magnolia has also asked LPs for an extension to its fundraising period.
A relatively strong start, featuring support from US and Japanese LPs, couldn’t be sustained in the face of COVID-19 and geopolitical tensions, the agent added.
Other sources identified several managers that achieved first closes but have since run aground, raising hardly anything in the past 12 months. They continue to doggedly pursue original or revised targets while LPs are asking whether it wouldn’t be better to take what’s there, focus on deployment, and return to market when conditions improve.
Provisional data from AVCJ Research for the first quarter of 2023 indicate that China managers raised a paltry USD 4.7bn, with more than 90% of that going to renminbi-denominated funds. But the renminbi total is still the lowest since the first quarter of 2020 when investors will dealing with the immediate impact of COVID-19.
The US dollar total has never been lower – although commitments have been on a downward trend for the past four quarters. Bumper fundraises by Sequoia Capital China and Qiming Venture Partners turned the third quarter of 2022 into an outlier.
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
DEALS
PEOPLE MOVES
For your calendar
UPCOMING EVENTS

 

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