Analysis
Australia tech: Valuation conundrum
Valuation adjustments and down rounds are expected to proliferate in Australia’s technology sector in the next 12 months. Investors are busy scrutinising business models for signs of vulnerability
China biotech: End of the boom
PE investment in China biotech has collapsed amid failed IPO processes and disputed valuations. Pockets of activity remain, though questions around commercialisation have yet to be answered
Portfolio: Welkin Capital and Shawya
Shawya is a fast-rising Chinese direct-to-consumer brand that takes a technology-driven approach to skincare. Welkin Capital is helping it address growing pains around talent and omnichannel capabilities
Placement agents: Asian entries
Asia’s sparse placement agent scene is fleshing itself out despite macro headwinds, but the model is being revised to adapt to a changing market. This appears irreversible
GP profile: Future Capital
Chinese venture capital firm Future Capital bases its investments on strong networks and research as well as a fondness for founders who are not afraid to confound accepted wisdom
Crypto: Something for everyone?
Traditional VCs are becoming more active in Asia’s blockchain and web3 space, despite structural and philosophical obstacles to participation. Can they withstand the crypto winter?
China secondaries: Liquidity play
Under pressure to generate returns amid a challenging fundraising environment, Chinese GPs are beginning to revise pricing expectations to get traction with continuation funds
Japan VC: Late-stage crossroads
Japan’s late-stage technology start-ups are finally beginning to attract meaningful attention from global investors. They should not pop open the champagne
Portfolio: Investcorp and Viz Branz
War, climate change, and COVID-19 are twisting the outlook for Investcorp-owned instant food supplier Viz Branz. But an implacable China growth story has underpinned an aggressive expansion agenda
Australia take-privates: Going large
A combination of abundant dry powder and friendly financing conditions are encouraging global GPs to pursue ever-larger listed companies in Australia. For now, macro headwinds are no deterrent
China outbound: Organic options
Tough domestic competition is encouraging Chinese tech start-ups to expand overseas – often organically, earlier in their lifecycles than before, and despite regulatory concerns
GP profile: EmergeVest
Building on unorthodox roots and a highly concentrated portfolio, EmergeVest wants to establish itself as a global-minded Asia specialist in technology-enabled supply chains
Emerging Asia start-ups: Governance revisited
Even a modest cooling off from tech investment euphoria experienced in the peak of the pandemic could reveal big cracks in Asian start-up markets. Diligence efforts are ramping up, but is it enough?
Private wealth: Talent war
A shortage of fundraisers familiar with the high-net-worth segment is being keenly felt in Asia as global GPs look to raise more capital through private bank channels
Asia credit: Shift in the cycle
Private debt investors in Asia are mindful of mounting global risks, but they also see opportunities emerging within the region across the capital structure
China consumer: Brand power vs traffic might
Private equity investment in China’s consumer sector has fluctuated over the past 18 months in line with the fortunes of portfolio companies. Applying TMT logic to brand building didn’t help
1Q analysis: Monetising managers
Baring Asia and PAG underline the value of their management entities; exits slump amid uncertainty; BGH Capital, renminbi GPs shore up fundraising; investment fails to extend the late 2021 flourish
Portfolio: Affinity Equity Partners and ServeOne
Affinity Equity Partners is redefining the B2B outsourcing industry by helping Korea’s ServeOne, escape the gravity of its chaebol parent to access new markets and business lines
Permanent capital: A bridge too far?
GPs are increasingly looking for ways to hold assets beyond the traditional fund timeline, but perpetual and long-dated capital largely remain the preserve of global firms and smaller specialists
GP profile: DCM
Investing in China, Japan, and the US out of a single global fund, DCM sticks to a formula of small funds, concentrated portfolios, early-stage deals, and collaborative cross-border teams
BNPL: Voodoo economics?
Credit-driven e-commerce is coming to developing Asia with an attractive supply-demand equation and a mix of macro and business-level risks. Start-ups are courting incumbents, not disrupting them
EQT and Baring Asia: Size matters
The significance of EQT’s acquisition of Baring Private Equity Asia is in the strategic machinations of global GPs as much as in the implications for on-the-ground dealmaking
Leveraged finance: ESG sells
Private equity firms in Asia are increasingly willing to consider sustainability-linked credit facilities, and banks are generally happy to provide them. Speed is currently delaying standardisation
