Analysis
AVCJ Awards 2018: Fundraising of the Year - Large Cap: Affinity Equity Partners
Communication and discipline helped Affinity Equity Partners complete a first and final close of $6 billion on its latest pan-Asian fund within four months
AVCJ Awards 2018: Responsible Investment: Manuka Health
The transformation of Manuka Health from loosely run family affair into professional segment leader helped organize a cottage industry into big business
Taiwan LPs: Increased exposure
As much as $10 billion could be released for investment in private equity following a hike in alternatives allocations for Taiwanese insurers. However, the major players will still deploy their capital with caution
2018 in review: Volatility vortex
Pan-regional funds attract the bulk of capital while the renminbi space withers; mixed fortunes for internet IPOs and trade sales; big buyouts fail to deliver but growth-stage tech stays strong
Portfolio: Actis Capital and Sprng Energy
In renewable energy platform Sprng, Actis Capital sees an opportunity to replicate the success it enjoyed with recently-exited Ostro Energy. A strong foundation based on alignment with management is the key
PE and aquaculture: Fishtech of the future
Rising consumer demand for high-quality products and the emergence of technologies that allow greater efficiency are driving investor interest in Asia’s previously overlooked aquaculture industry
Secondary restructurings: Opportunistic delays
Creative secondary deals are presenting private equity investors with new options for extending exposure to prized assets. Although a modest trend, it evokes big questions about best conduct
India fintech: Corporations act
Stakeholders foresee progress and problems as global strategic investors make their first bets in the Indian fintech space. There is little expectation of replicating the China story
India PE spin-outs: Standing tall
India provides fertile ground for spin-outs by increasingly confident PE veterans, but LP skepticism remains a major hurdle. Managers must demonstrate their investment skills quickly or risk being left behind
India macro: Steady as she goes
India’s economy is expected to remain stable in the face of global volatility, but trouble spots remain. Investors must structure their portfolios carefully to ensure they are not caught off guard by sudden shocks
Family offices: Character actors
Family offices are driven by personalities and ideals that cannot be understood as part of an industry pattern. Relationship building is therefore more intimate than transactional
China tech IPOs: Battle of the bourses
China has rolled out another proposal for a start-up friendly listing regime in Shanghai, this time with presidential imprimatur. PE investors are skeptical as to how quickly it could challenge Hong Kong
GP stakes: Succession scenarios
Funds dedicated to acquiring stakes in alternatives managers represent a small but growing industry niche. They target GPs with strong records, stable fee streams and a need to address inter-generational change
GP stakes: A matter of ownership
Many private equity firms in Asia have been approached about selling a GP stake, whether it is to facilitate succession or in return for supporting a fundraise. Responses to such propositions are mixed
Korea PE outlook: Exit issues
While Korea’s private equity market remains relatively stable, a much-anticipated opening up of IPO exits has yet to come to fruition
Japan PE outlook: Slow and steady
GPs have built strong ties with corporate Japan by demonstrating value-add capabilities. These networks should serve them well as the market becomes more active
Southeast Asia PE outlook: Debatable boom
PE and VC players remain focused on Southeast Asia’s long-term growth trajectory despite gathering macro storm clouds. Valuations remain a bone of contention
Operational value-add: Active duty
VCs are under pressure to improve operational capacity as competition heats up in Asia’s start-up ecosystems. Methodologies filtering over from the US are finding both disciples and skeptics
Australasia PE outlook: Return of the take-private
Large-cap GPs are setting their sights on listed companies, with healthcare, education and technology top of the list
Operational value-add: Sweat equity
As Asian GPs trial a range of operational value-add strategies with an eye on shifting market dynamics, they are discovering that helping portfolio companies requires self-inspection
China PE outlook: End of the party
Growth stage technology deals have retained a strong following in 2018, but elsewhere in Chinese private equity the mood is more somber
India PE outlook: Momentary frights
Investors see potential in India as valuation concerns ease, but exits and the macro picture present challenges in the short term
Operational value-add: Sign of the times
Budding interest in operational value-add marks a new level of maturity in Asian private equity. Trial-and-error experimentation has progressed slower than the macro motivators
Asia private equity: Tipping point?
Asian PE appears to be entering a transitional period as an assortment of macro issues loom over the global economy. GPs anticipate an adjustment in valuations, but woe betide he who tries to call the cycle
