Analysis
China healthcare AI: A learning process
Most healthcare-focused artificial intelligence start-ups in China focus on image-based diagnosis assistance, but deep learning-based drug discovery might be the key application
LPs and infrastructure: Custom connections
LPs are mixing up their approaches to infrastructure as shifts in supply-demand dynamics converge with increased specialization requirements in next-generation projects. Asia remains the unproven goldmine
India guaranteed return clauses: No sure things
Guaranteed minimum return clauses, and their impact on entrepreneurs, have drawn renewed scrutiny in Indian private equity. Investors say a reassessment of their contribution to value-add is long overdue
China secondaries: Curious conversions
An exit lag and difficulties raising money for renminbi funds in China has created a novel opening for secondaries investors comfortable moving assets from one currency to another
China social e-commerce: Saturated society
The success of Pinduoduo drew dozens of companies – start-ups and established retailers – into China’s social e-commerce space. Investors are now looking for new twists on the model, or just looking elsewhere
Placement agents: Perfect partners?
Once a private equity firm selects a placement agent, they might be working hand in glove on a fundraise for the next two years. A strong mutual understanding increases the chances of a favorable outcome
Korea start-ups: The graduates
Korea’s start-ups are internationalizing and becoming more technically advanced as the ecosystem matures. A rapidly multiplying flock of local VCs will have to do the same to keep up with them
Korea culture plays: Brands apart
Korean pop music is being used as a marketing tool for a long tail of consumers products and services. While investors are keen to leverage star power, they recognize it doesn’t last forever
Korea cross-border consumer: Dining out
Restaurant chains can potentially ride on the tailwinds generated by demand for Korean cultural exports, but strong execution is ultimately the key factor in overseas expansion
Korean carve-outs: Network effects
Chaebol carve-outs have historically been elusive for global firms operating in Korea. A growing appreciation of their value-add capabilities could be the catalyst needed to direct more deals their way
GP profile: Legend Capital
Legend Capital has absorbed lessons from its corporate sponsor to build a diversified investment business across the US dollar and renminbi spaces. It is now trying to take LP relations to a new level
China investment regulation: Context clues
Revisions to China’s negative investment list show the country remains committed to widening access, but consistency in enforcement and clarity around political issues are significant challenges for investors
Sovereign investors and technology: Smart nations
Conservative sovereign wealth investors are increasingly comfortable making direct commitments to venture-oriented technology companies. The strategy appears to suit them but remains to be validated
Women on corporate boards: Finding a voice
Investor pressure and industry lobbying has contributed to a rise in female representation on corporate boards. While quotas work for some, they aren’t necessarily the silver bullet
Women in VC: Crashing the gates
VC firms are increasingly serious about identifying and elevating prospective female talent, but the industry’s culture has a long way to go before women can feel truly valued and contribute their best work
Macro and diversity: All hands on deck
As women participate in economies across Asia in larger numbers, investors must consider how this impacts their target markets. Gender-balanced portfolios will no longer be a nice-to-have
Women in PE: Mind the gap
Gender diversity within private equity is an increasing priority for LPs and GPs alike. Addressing problems around the recruitment and retention of women requires fundamental changes in culture and mindset
Japan middle market: Going local
Private equity firms looking for an edge in Japan’s middle market are leveraging relationships with brokers and banks – including LPs in their funds – to access company founders in the hinterlands
India IPOs: Long-term horizons
Indian PE and VC investors expect domestic and overseas public markets to become increasingly attractive exit avenues for their portfolio companies as the global macroeconomic volatility dissipates
Asia legal tech: Order in court
Legal tech investment is quietly booming from a small base, with the under-digitalized nature of law firms presenting both an opening and an inhibitor. First-mover ecosystems are self-organizing quickly
Global credit: Speed or scale?
The winners from a widely anticipated shakeout in global credit markets will be defined by different qualities. Direct lenders expect size to be a decisive factor, while distress players prioritize nimbleness
Portfolio company boards: Gurus wanted
Filling board seats for portfolio companies is more art than science in both private equity and venture capital. Investors must approach the challenge with flexible playbooks
Southeast Asia buyouts: Flexibility first
Southeast Asia has yet to deliver a consistent stream of large-cap buyout deals. Private equity investors must be creative, flexible and patient in trying to crack the market
Southeast Asia exits: Greener pastures
Southeast Asia’s internal growth and rising appeal among global investors in recent years have fed expectations that PE and VC exits will follow. The logic is sturdy but detailed projections are elusive
