Analysis
Asian outposts: LPs see value in a local presence
Few institutional investors have the scale, resources or mandate to establish private markets platforms within Asia. Those that do are looking to make it pay off through co-investment
Due diligence & psychology: Internal audit
PE investors – whether they are putting money into companies or funds – must apply more psychologically informed tactics to remain competitive. It is the industry’s most intellectual frontier
PE & QSR: Dining disrupted
With ubiquitous delivery services, ordering apps that learn user preferences, and intelligent inventory management, technology is changing China’s restaurant industry. Operators are in a race to stay relevant
ESG in Asia: Maturing perspectives
Asian investors are growing more confident in their approaches to environmental, social, and governance issues, but policies must be flexible enough to handle unforeseen complications
PE & QSR: Going greenfield in India
Localization was the key for Everstone Group when rolling out Burger King in an India market that is both price-sensitive and not known for its appreciation of beef
PE & QSR: Ambition on a bun
Many private equity investors think they can make a fast buck from fast dining, but rolling out a Western-style brand in Asia requires discipline on valuation and competence in execution
GP profile: J-Star
J-Star’s measured approach to Japan’s middle-market buyout space has tracked a slowly unfolding opportunity set with an uncommon sense of patience
Chinese VC in Africa: Cultural barriers
Chinese investors recognize the long-term potential in fostering technology-enabled business models in Africa, but reluctance to engage local stakeholders and develop local knowledge is holding them back
Portfolio: China Everbright and Terminus
China Everbright has turned a sub-scale consumer-facing smart door lock manufacturer into an internet-of-things platform catering to enterprise customers. Terminus is now building out its product base
Japan succession planning: The generation game
By selling a stake in the GP, Advantage Partners has broken new ground in Japanese private equity. The move is designed to facilitate ownership transition, accumulate balance sheet capital
Consumer hardware: Some assembly required
Consumer hardware is a cratered landscape in venture capital, and the risk-reward equation is not particularly well understood. New ways of looking at a traditional industry are needed
China apartment rental platforms: Illogical letting
Qingke, a Chinese long-term apartment rental operator, is looking to go public at a time when many of its peers are going out of business. Pursuing scale at the expense of sustainability is the core problem
Philippines PE: Power dynamics
A virtually impenetrable middle market under the control of incumbent conglomerates is the least governable of the systemic obstacles facing private equity hopefuls in the Philippines
3Q analysis: Exit angst
Unrest plays havoc with Hong Kong liquidity events as Asia exits stumble; one large renminbi fund does not represent a panacea; consumer products come to the fore as investment stabilizes
US tech regulation: Green card or red card?
Compliance with US regulations on foreign investment in critical technologies is forcing Chinese VC players to examine their fund structure and governance as well as their deployment strategies
Industrial intrigue: China's industry 4.0
Industry 4.0 is a handy buzzword for those selling a manufacturing upgrade story in China, but implementation remains a challenge. Smart Fabric’s efforts make it the exception to the rule
Operational due diligence: Query parameters
Institutional investors are taking a closer look at the back-office operations of fund managers in what appears to be a new normal for GP-LP relations. Service providers are circling
GP profile: Northstar Group
Northstar Group made its name through a series of consumer, financial services and commodities plays in a nascent Indonesian market. Technology is likely to define the firm’s next chapter
Australia leveraged finance: Best blend?
Two years ago, unitranche structures were a novelty in Australia’s leveraged finance market. Now they are an integral part of it. For borrowers and lenders, there might be no turning back
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
