Analysis
Big brother: Japan's government LPs
The government is becoming an increasingly significant LP in Japanese private equity funds. Smaller GPs can’t live without it but there are wider concerns about sustainability and long-term economic impact
Japan IPOs: Rising sun
On the back of a cautious economic recovery Japan witnessed a boom in IPOs in 2013 as a host of venture capital-backed companies went public. How long will the good times last?
Value Creation: Shock and awe?
Asian GPs are building up their operational resources to support portfolio companies, but the true value of expertise is knowing when and where to make influence count
2013 in review: Mixed fortunes
Bifurcation in the fundraising market as LPs play it safe with managers they know; South Korea and India emerge as buyout bright spots; positive signs for IPOs after a difficult 12 months
Portfolio: EQT Partners and Japan Home Centre
In 2010 Japan Home Centre was already a successful domestic brand but to realize its IPO ambitions it needed the right partner to guide it through a period of rapid expansion – EQT Partners
The secondary network: Online platforms
Setter Capital’s Secondary Link is the latest online platform intended to fill the information void in the secondaries market. Industry participants have mixed feelings as to its utility
Adding extra: China bolt-on acquisitions
Private equity firms are exploring various strategies to help Chinese companies expand overseas. Bolt-on acquisitions are a proven approach in some markets, but that doesn’t mean they work for corporate China
India fundraising: Uphill battle
Investor sentiment on India is weak, with LPs wary of re-upping with PE firms that have yet to prove their ability to return capital. But as underperformers drop away, life could be all the sweeter for the survivors
India agritech: Green shoots
India’s agricultural sector is fast-growing but inefficient. Private equity is well positioned to capitalize on the need for better technology, information and distribution
India buyouts: Ceding control
India emerged as and remains a predominantly growth capital PE market, but economic and generational factors have conspired to make domestic companies more open to a buyout proposition
Hong Kong PE regulation: The quest for certainty
Proposals have been released on extending Hong Kong’s offshore funds tax exemption to include PE and setting up open-ended investment companies. Market watchers are encouraged, but know they must be patient
Co-investment: Behind the buzzword
Global institutions have a growing appetite for co-investment in Asia, but not all varieties of LP have the resources or will to establish a local presence and do it properly. GPs must decide who adds value and where
China due diligence: Playing it safe
The catalogue of deals gone bad in China is long and undistinguished. Private equity firms, and the third-party advisors that work with them, are rethinking their approach to due diligence
China online video: Big fish, small fish
As Chinese online video consumers switch to mobile platforms, venture capital investors are looking for ways to ride the wave – but they must do it with one eye on strategic players also entering the space
Asia distress: Playing doctor
Asia appears to be destined for a spate of corporate restructurings. Although they are studying a wealth of potential investments, distress specialists say the obvious targets are not always the most accessible
Investment: Southeast Asia's family footholds
By most measures, Southeast Asia is under-penetrated by private equity. If deal flow expectations are to be met, investors must tap local networks for openings in and around the family conglomerates
Fundraising: The JOBS Act and general solicitation
The removal of restrictions on general solicitation in the US potentially allows private equity firms to tap accredited investors that previously fell beneath their radar. However, managers are reluctant to rush in
VC fundraising: Where angels flock
Venture capital fundraising has become difficult for all but the select few in Asia as LPs concentrate their resources on established names. Where will replacement investors come from?
Fundraising and pension reform: A slow-burn issue
Defined benefit public pension plans are one of PE’s biggest bank rollers, so the rise in defined contribution plans – that tend to favor liquid assets – is a long-term concern. There must be compromise on both sides
Asia fundraising: Size matters?
While a select group of GPs are able to raise large funds at short order in Asia, the small and mid-cap space is hollowing out. It is in parts cyclical and a function of broader changes in the post-financial crisis LP base
Exits: Stuck in China
The weak IPO market has left many China PE firms holding assets for longer than expected. While growth deals will remain dominant, there will be change in how and with whom they are done
Asia real assets: Need returns, will travel
Interest in Asian real assets has surged as investors look to higher growth emerging markets for income and upside. Opportunities run from real estate to infrastructure, and in some cases offer a bit of both
India e-commerce: Sink or swim
India’s e-commerce sector is in the midst of consolidation. VC money continues to flow to the larger players but even they are examining their business models in a climate of higher operating costs
On the shoulders of giants: DFIs and first-time funds
Backing from a development finance institution can be the making of a first-time GP in a far-flung jurisdiction. Working with this kind of LP, however, comes with its own set of challenges