Analysis
China tech valuations: Unnatural acts
China’s tech sector is gripped by uncertainty, but some GPs will do anything to avoid marking down their portfolios. LPs are entitled to ask whether unicorns are still worthy of a billion-dollar valuation
China's foreign investment law: A level playing field?
China’s new foreign investment law appears to make life easier for overseas investors in some areas, but uncertainty remains in others. Industry participants are waiting for more details to emerge in 2020
Asia's lower-tier cities: New horizons
PE and VC players are slowly discovering the investment and business expansion opportunities in the lower-tier cities of developing Asia. Risk-reward calculations are becoming more complex in the process
Southeast Asia manufacturing: Back in the game
Contract manufacturers are reconsidering their exposure to China in the light of trade tensions with the US. Southeast Asia stands to benefit, but companies will have to navigate an increasingly complicated landscape
Indian agtech: Technology harvest
Indian investors are excited about a growing wave of agricultural technology start-ups focused on solving practical problems faced by farmers, but achieving scale with a limited scope will be a challenge
GP profile: Allegro Funds
The first 15 years of Australia’s Allegro Funds have been marked by a series of changes both to the firm and its market. Adapting to meet them has proven to be one of the turnaround specialist’s greatest strengths
Preferred equity: Last in, first out
Issuing preferred equity to secondary investors is a short-cut to liquidity for China VCs with valuable portfolios but few exits. The strategy isn’t universally popular, but what will it take for GPs to make the leap?
Japan VC: Positive energy
Japan’s quiet venture capital space is booming within its own borders. Signs of a stronger exit market and an exuberant influx of corporate involvement are encouraging themes, but they will play out slowly
China ESG: Societal shift
China’s ESG compliance drive reflects a long structural change for financial markets and an evolutionary process for local business culture. Many investment variables are unique
China B2B trading platforms: Business friendly
Online B2B trading platforms have the potential to bring efficiency and pricing transparency to the more fragmented segments of China’s industrial economy. It’s all about picking the right vertical at the right time
China investment: Looking up in a downturn
Private equity firms that held back from investing in 2018 as uncertainty gripped China’s economy now see reasons to get busy again. With few macro tailwinds, GPs will be judged on their ability to pick winners
China distress: Dining on defaults
GPs expect a wave of non-performing loan sales in China as the slowing economy leaves banks with more bad debts to resolve, but could the distress investment opportunity be even broader than they envisage?
Chinese e-commerce: Community counts
A host of Chinese community e-commerce start-ups want to replicate the group-buying might of Meituan-Dianping and the social media savvy of Pinduoduo. They are getting capital, but can they achieve scale?
Development finance: The great game
As the US overhauls its development finance institution in response to China’s growing infrastructure investment, the PE industry is preparing for a world in which politics goes hand-in-hand with capital
Australia cross-border: Fool me once
Asian markets continue to represent an attractive destination for Australian PE-backed companies, but investors will need to show increasingly skeptical buyers that their cross-border plans have borne fruit
Australia financial regulation: Compliance conundrum
Proposed reforms could redraw Australia’s financial services landscape as tougher regulatory requirements see banks back away from certain areas. PE investors want to pick up the pieces
Australia VC: Debutantes’ ball
Long timeframes of incremental growth from a shallow base will test the staying power of a new generation of Australian venture capital funds. But confidence is running high
Australia co-investment: Too close for comfort?
Most Australian institutional investors want to participate in deals alongside private equity managers, but few have the bandwidth to do it effectively. Recruitment and risk controls are the key obstacles
China coffee shops: Out of Luckin?
Luckin Coffee has won substantial private equity funding for an expansion strategy that involves taking the fight to Starbucks. But is the Chinese coffee shop chain’s business model sustainable?
Hong Kong tax: Playing catch-up
Hong Kong is introducing various initiatives intended to encourage private equity firms to bring more of their operations onshore. A failure to act may see Singapore emerge as Asia’s jurisdiction of choice
GP profile: ChrysCapital Partners
Over the last 20 years ChrysCapital Partners has become one of India’s most prominent private equity firms. The GP cites an internal culture of free and open discussion as the key to its sustained success
VC documentation: Standardizing small print
The rapid growth of venture capital in Southeast Asia has fostered the emergence of varied working practices. Singapore’s model investment agreements are intended to help bring order to chaos
PE holding periods: The optics of exits
Should you take a 3x return today or wait for a potentially larger exit next year? For GPs, this decision is complicated by fears of a downturn, the timing of future fundraises, and conflicting LP feedback
Portfolio: QIC and North Australian Pastoral
Addressing Chinese demand was central to QIC’s acquisition of cattle breeder North Australian Pastoral, but the company has repositioned itself in response to changing patterns of consumption in global beef markets
