Regulation
China regulatory crackdown threatens PE education deals
China has imposed severe restrictions on private tutoring that appear to undermine the commercial viability of companies in the space, potentially making private equity investment unviable.
Australia LPs: Revert to the mean
Engagement, efficiency, and accountability are the driving forces behind reforms to Australia’s superannuation system. But could private equity lose out in a race to the middle on returns?
Tech investment surges in India, SE Asia as China plummets
A drop-off in PE and VC technology investment in China in the second quarter of 2021 – widely linked to a multi-faceted regulatory crackdown on the sector – was to some extent counterbalanced by record levels of activity in India and Southeast Asia.
2Q analysis: Trouble in China
Efforts to rein in China’s technology giants have dampened investor sentiment, with India and Southeast Asia stepping into the void. China remains active for fundraising, but there are fears that US IPO activity could take a hit
Regulator blocks China live-streaming platform merger
China’s antitrust watchdog has blocked a merger of Huya and Douyu - the country's two largest video game live-streaming platforms - initiated by Tencent Holdings.
PE & gambling: Ante up
Private equity has exhibited consistent appetite for gambling-related assets amid pandemic-fueled uncertainty. Regulation remains a significant wildcard in Asia. Reputational risk, not so much
China: A controversial ESOP
An employee stock ownership plan introduced alongside Hillhouse Capital’s 2019 investment in Gree Electric Appliances has raised questions about enrichment and alignment
Carried interest: Safe in Hong Kong?
Tax treatment of carried interest has been an issue of contention in Hong Kong for several years. Just when it seemed to be resolved, draft implementation guidelines are causing disquiet
China IPOs: Regulatory rumblings
China’s Star Market has seen a drop-off in IPOs as regulators call for heightened scrutiny of listing candidates – to the point of asking PE and VC investors to identify the LPs in their funds
Shanghai broadens investment scope of QFLP
Shanghai is giving foreign investors better access to unlisted assets and private funds - under an expanded Qualified Foreign Limited Partner (QFLP) regime - as part of efforts to establish itself as a global asset management hub.
Vietnam SOEs: Diverted divestments
Murky accounting and politics have rapidly decelerated the privatization of Vietnam’s government-owned companies in recent years. Private equity is biding its time and testing creative inroads
Deal focus: Centurium, Joy re-up in China's Luckin Coffee
Centurium Capital and Joy Capital have invested $250 million in scandal-hit Chinese coffee shop chain, with Centurium describing it as a sign of faith in the company’s business model and long-term prospects.
China’s Danke to be delisted in US
The New York Exchange is set to delist Chinese apartment rental service provider Danke, having halted trading in the stock on March 15 because of poor information disclosure.
Applied terminates acquisition of Japan's Kokusai Electric
KKR’s $3.5 billion sale of Japanese semiconductor industry supplier Kokusai Electric to US-listed Applied Materials has fallen through due to regulatory approval issues in China.
Shariah investors in PE: Tailored exposure
Employees Provident Fund’s $600 million shariah-compliant co-investment mandate suggests increasing institutional appetite for Islamic finance solutions in private equity. Is the industry ready?
SPACs in Asia: Out of the comfort zone
Several Asian stock exchanges will consider allowing SPAC offerings, but implementation may run contrary to their regulatory ethos – and there is no guarantee of a strong market response
China regulation: Taming the giants
Recent regulatory reforms suggest that China will not let the growth of large technology companies go unchecked. The implications could be far-reaching, not least for VC investors and start-ups
India direct secondaries: Footprint freefall
A darker mood for Chinese investors in India is stirring expectations for a wave of direct secondary opportunities
Myanmar: Coup confusion
Myanmar's isolationism is likely to be harder to maintain this time should the military seek a return to its old ways. Investors are watching and waiting, but should they also be considering the ESG implications?
PE-backed Luckin files for bankruptcy in the US
Chinese coffee shop chain Luckin Coffee, which has several private equity backers, has filed for bankruptcy protection in the US to aid its restructuring efforts following the emergence of a sales fraud last year.
Q&A: Bain & Company's Henrik Naujoks
Henrik Naujoks, Bain & Company’s financial services lead for Asia, observes that investors must not ignore the increasing cohesion of the Greater Bay Area despite a relative lack of near-term gambits
Vista founder calls for investment in Asia tech infrastructure
Vista Equity Partners is keen to invest in Asia’s financial technology space, but founder Robert F. Smith stressed that governments must put in place the appropriate regulatory infrastructure.
Investors question eligibility for HK carried interest tax concession
Fund-of-funds and family offices could be excluded from Hong Kong’s proposed carried interest tax concession, industry participants have warned.
Asia fund administration: Odd jobs
COVID-19 is the latest in a growing list of drivers causing private equity firms to outsource various operations. The trend is implacable but inherently flexible
