Weekly digest - April 26 2023
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26 April 2023
COVER STORY
India has created an onshore nook with offshore characteristics to lure funds domiciled in Singapore and Mauritius. Does GIFT City have staying power?
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LP INTERVIEW
STAFFORD CAPITAL PARTNERS
 Founded in Australia, Stafford Capital Partners evolved into a global asset manager focused on timberland and infrastructure secondaries and PE co-investment. ESG is a rising client priority.DEAL FOCUS
CBC GETS COUNTERINTUITIVE IN CHINA
 CBC Group has helped multiple start-ups move from in-licensing to drug development to commercialisation. With China’s Hasten, it is navigating this tried-and-tested journey in reverse.FUND FOCUS
AQUILIUS TARGETS ASIA'S SECONDARIES GAP
 Aquilius Investment Partners, a real estate secondaries investor, is tracking significant, opportunistic private equity deal flow in the current exit malaise. Diversification is the theme of the maiden fund.DEAL FOCUS
CHAMLION LEAVES ITS MARK ON 3D PRINTING
 The dental industry was one of few areas in which China’s army of 3D printing start-ups found sufficient addressable demand. Chamlion has risen to the top of the pile by virtue of a timely services pivot.DEAL FOCUS
EXCAVATING THE LITHOSPHERE
 Australia’s Investible is helping lithium processor Novalith clean up one of the dirtiest links in the electric vehicle supply chain. The science appears sound, but can it stay clean as it scales? |
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By the Numbers
AVCJ RESEARCH
A GAP IN THE MARKET?
Singapore-based Collyer Capital appears to be breaking new ground with the launch of its Southeast Asia-focused fund-of-funds. AVCJ Research has records of around 60 partial or final closes by fund-of-funds in Asia over the past seven years, excluding renminbi-denominated vehicles. None are solely targeting Southeast Asia.
Collyer aspires to raise just USD 100m for its first vintage – a relatively small total in an industry that, if anything, has become more concentrated. Nearly USD 35bn has been committed to fund-of-funds in Asia since 2015. The annual average of USD 4.3bn is skewed upwards somewhat by a Korean government-backed industry restructuring vehicle that closed on USD 6.1bn in 2017. It is one of only 14 USD 1bn fund-of-funds that together account for more than two-thirds of all capital raised. Asia Alternatives, Axiom Asia and Temasek Holdings-owned Azalea Asset Management are responsible for three apiece. The most recent final closes were by Asia Alternatives and LGT Capital Partners, which raised USD 2bn and USD 1.65bn, respectively, in 2022. The number of funds achieving closes has also dropped off in recent years: there were 28 between 2019 and 2022 compared to 42 in 2015-2018 and 48 in 2011-2014. It reflects a general shift in investment demand – characterised by a shift from co-mingled fund-of-funds to more customised mandates – but Collyer believes the traditional approach is warranted in Southeast Asia. “The product is designed for investors that may not be willing to base themselves here but are curious about Southeast Asia and don’t necessarily want a pan-Asia fund-of-funds. It could be argued that diversification through a fund-of-funds is less justified in developed Asia and more justified in Southeast Asia, where it can solve issues like geographic risk and foreign exchange,” said Eric Marchand, one of the founders. 
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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