Analysis
Korea LPs: Credit junkies
Korean institutional investors favor private debt over other alternatives asset classes because of its long tenor and stable cash flows. Multi-credit strategies are likely to launch as more capital is allocated overseas
PE and AI: The machinists
After decades of tantalizing but patchy progress, artificial intelligence is finally seen as ready for mass commercialization. Investors must now weigh an unmissable opportunity with a world of uncertainty
Portfolio: ChrysCapital and LiquidHub
Despite coming in as a minority investor, ChrysCapital has been key to the overseas expansion of US-based LiquidHub. The firm credits its active collaboration and unique connections
Energy storage: Held in reserve
Energy storage has the potential to benefit Asia’s renewable power developers and traditional utilities, but regulatory obstacles must be removed first. PE can help the industry over its current hurdles
GP-led secondaries: Stigmatized no more
Traditionally perceived as a recourse for private equity firms in trouble, GP-led secondary transactions are starting to be used by brand-name managers as a liquidity solution for LPs
GP-LP: Dangerous liaisons
A diverging supply-demand dynamic in private equity fundraising is threatening the GP-LP alignment of interest. Concessions on both sides are needed in the interests of long-term stability
Moving time: How VCs replace start-up CEOs
From Uber to Flipkart, there are high-profile examples of founders being replaced as CEOs of their start-ups. It isn’t common practice in Asia, and for reasons of corporate culture, this isn’t likely to change
Korean fintech: Financial times
Korea’s financial technology sector is affording start-ups disruption opportunities based on an outdated infrastructure environment. Early movers are experimenting with a number of business models
Korea securities firms: Brokerage bonanza
Korean securities firms are building PE teams with a view to raising capital from third-party investors. There is government support for these efforts, but independent GPs aren’t worried about increased competition
Korean middle market: Up the ladder
Interest from foreign LPs in Korea’s middle-market is rising, but the segment is still dominated by domestic institutional investors. Changes to this dynamic are unlikely to arrive soon
Token sales: Cryptic beginnings
The sale of digitized contracts known as tokens has become a dominating force in early-stage start-up funding. Venture capitalists are beginning to cautiously participate as the phenomenon matures
Portfolio: The Rohatyn Group and BHC
The Rohatyn Group bought Korean fried chicken franchise BHC in 2013 with a view to ironing out inefficiencies, broadening brand appeal, and pursuing bolt-on acquisitions. It has made progress in each area
Data centers: The information edge
Asia’s booming online economies have created unprecedented demand for data center services, but private equity investors still must determine the best way to approach the industry
India's goods and services tax: A fair fight
While India’s new goods and services tax regime has caused temporary dislocation, private equity players are confident that their portfolio companies are set for long-term success
China dairy: Gone sour?
China’s dairy industry has experienced a dramatic fall from grace, driven by overhype at home and lower prices overseas. Investors that got in at the top of the market are considering their options
Japan VC: Culture club
The Cool Japan policy aims to internationalize a large but lagging economy beyond its manufacturing roots. Venture capital will be the key to reimagining unique overlaps of culture and technology
Secondary buyouts: Peer to peer
Maligned by some investors, sponsor-to-sponsor deals are gradually becoming more prevalent in Asia as the private equity industry matures. What is the early verdict?
Southeast Asia cleantech: Joining the crowd
Despite growing investment opportunities, LPs are still skeptical about renewable energy in Southeast Asia. Development and operating platforms may be the way to break the stalemate
China project funds: Cut to fit
Project funds have become popular in China on the back of increased demand for PE exposure from corporates and high net worth individuals. It remains to be seen if they have true staying power
Portfolio: Everstone Capital and Modern Foods
Everstone Capital’s purchase of Hindustan Unilever’s bakery business was its first corporate carve-out. It is now ready to introduce India to the new and improved Modern Foods
IoT in Asia: Things to come
A number of political factors have positioned Asia Pacific to be a global leader in internet-of-things development. Investors must now navigate an unwieldy field of technologies, markets and social drivers
Financial institutions and fintech: Bouncing checks
Southeast Asia’s traditional banks have begun to take a strong interest in the financial technology environment, but their early-stage involvement in the ecosystem is still tentative
2Q analysis: All about Japan
Japan’s middle-market in fundraising flurry; Toshiba fails to make the second-quarter cut, but Asia buyouts still boom; public markets, particularly in Japan, deliver strong exits as trade sales stutter
Frontier markets: Late to the boom
Cambodia, Laos and Myanmar are among the last frontier markets in Asia but well positioned to benefit from accelerating interest in the ASEAN region. Private equity success will require a nimble approach