AVCJ

Weekly digest - November 01 2023

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01 November 2023
MONEY TRAIN: RAISING CAPITAL OUT OF ASIA
COVER STORY
US and European GPs on the fundraising trail are looking to target Asian LPs they previously overlooked. It requires patience and persistence.
LP INTERVIEW
AUSTRALIA'S QIC
LP INTERVIEWAs QIC’s PE programme tilts toward earlier stages, legacy assets have counterbalanced macro turbulence in tech. More direct investment is desired, but funds are still of interest, especially in Europe.
DEAL FOCUS
AFFIRMA GENERATES 8X RETURN WITH INDIA'S TBO
VERTEX EMPHASIZES REALISATIONSAffirma Capital makes good on a partial exit from Indian travel agent software provider TBO.com as General Atlantic comes in to help rekindle plans for a domestic IPO.
DEAL FOCUS
ALGAE-BASED BIO-PLASTICS COME TO ASIA
ALGAE-BASED BIO-PLASTICS COME TO ASIAUS-based Algenesis has figured out how to make plastic from algae. Singapore’s Circulate Capital is helping the company bring the technology to Asian manufacturers.
By the Numbers
AVCJ RESEARCH
HOPE SPRINGS
Mainland China – notably the Star Market and Chinext – remains the dominant force in Asia private equity-backed IPOs, accounting for nearly two-thirds of the offerings and close to 90% of the aggregate proceeds for 2023 to date. Of the year’s 50 largest IPOs involving companies with financial sponsors in the cap table, 45 took place on mainland exchanges, according to AVCJ Research.
Yet the other five are worth noting. Hesai Group was the largest of the Chinese companies that listed on NASDAQ earlier in the year, when there were hopes of revival in the China-to-US channel. It remains to be seen if those hopes will be realised.
Mankind Pharma, a drugmaker that counts ChrysCapital Partners and Capital International among its investors, raised USD 519m in May. The largest PE-backed IPO in about a year, it is credited with helping revitalise the domestic market. A trickle of other offerings has followed, including TPG’s RR Kabel, another of the other five.
The remaining two have both gone public in the past week. J&T Global Express, an express delivery business launched in Indonesia by a Chinese entrepreneur, raised USD 499m. This facilitated liquidity events for the likes of Boyu Capital, Hillhouse Investment, Hidden Hill Capital, Sequoia Capital, and Temasek Holdings.
But pride of place goes to Kokusai Electric, a KKR-owned semiconductor industry supplier. Its USD 720m IPO is Japan’s largest in five years. It represents a sizeable windfall for KKR, which bought Hitachi Kokusai Electric for USD 2.9bn in 2017 through a tender offer and split the business in two, taking full control of the thin films division – now called Kokusai Electric – and sharing the rest with its co-investors.
KKR sold its interest in the other assets to one of those co-investors, made a partial exit from Kokusai Electric by selling a minority stake to Qatar Holding in June, and then took all the proceeds from the IPO, which valued the company at USD 3.6bn.
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
OTHER
For your calendar
UPCOMING EVENTS

 

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