Analysis
China PE: Tipping point?
Uncertainty continued to weigh on China private equity deal flow last year, leaving plenty of capital sitting on the sidelines waiting to reengage. GPs see diversification as an antidote to competition
GP profile: CPE Capital
CHAMP Private Equity became CPE Capital earlier this year, following a leadership transition. The Australian GP has also refined its middle market investment strategy, emphasizing functional expertise
Taiwan technology: Homeward bound?
Taiwan is encouraging its industrial technology manufacturers to relocate operations from the mainland to the domestic market in response to China-US tensions. This may create openings for PE and VC investors
2019 in review: Falling short
Fundraising, investment and exits in Asia are unlikely to match last year as pan-regional funds take a back seat, large-cap buyouts remain in short supply, growth-stage tech loses its edge, and IPOs flounder
Portfolio: Warburg Pincus and ESR
ESR, an Asia-focused warehousing platform seeded by Warburg Pincus, stole a march on its rivals by tapping into the rise of e-commerce in China. It is now looking to stay ahead of the curve
India PE: Careful carving
Driven by distress and strategic rationale, Indian corporates are more willing to sell off attractive assets. Private equity investors must figure out what might be available before it comes on the market
LPs and secondaries: Subliminal stimulation
Global economic and political themes are exerting an almost invisible undertow on LP participation in the secondaries market. The boom in Asia will be touched but not redirected
India leveraged finance: Debt delivered
The greater availability of control deals in India is creating opportunities for leveraged lenders as they become more comfortable with the complexities of onshore-offshore capital movements
India middle market: Polarization point
Increased deal flow towards the top end of India’s private equity market is stretching the capacity of mid-tier local managers. What are the implications for co-investment and fund size?
India start-ups: Land of the giants
Indian investors are savoring a rapid proliferation in billion-dollar technology start-ups, but as the unicorn heap gets bigger, an almost unrecognizable economy will pose new challenges
PE & QSR: Selling pizza in Japan
From delightfully indulgent pizza toppings to delivery world records, Domino’s Japan has added a splash of color to the food and beverage space. It also served up robust private equity returns
New Frontier Group: Another kind of platform
Led by two former executives with The Blackstone Group in Asia, New Frontier Group has so far looked beyond traditional PE funding channels as it builds large-scale Chinese healthcare platforms
China SaaS: Dark side of the moon
Venture capital investors in China are turning their minds and manpower to the country’s nascent enterprise software opportunity, but the evolution curve is unlikely to be an exact match of the US
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
