Analysis
Sport investment: Into the value chain
Investors are increasingly drawn to the structural nuances, sticky customer bases, and long tail of ancillary opportunities that exist around professional sports. Asia’s role is small but growing
Taking PE in-house: Less limited partners
Institutional investors continue to pursue more active roles in private equity, even as a souring macro backdrop makes the game harder to play. Talent is always the key variable
Portfolio: Warburg Pincus and HTDK Group
Warburg Pincus’ investment in Chinese medical devices industry services provider HTDK Group is riding the domestic healthcare wave. Bringing foreigners to the party is the next chapter
China fundraising: Onshore vs offshore
Raising capital for China strategies is difficult right now, regardless of currency, but are geopolitical forces enabling the rise of renminbi-denominated funds at the expense of the US dollar?
GP selection: Discriminating customers
Sizeable LPs are hardening their criteria for fund commitments in reaction to a tougher investing environment. But going with fewer, deeper relationships is an uphill climb
3Q analysis: Lean times
A flicker in India fails to disguise a miserable quarter for exits; a handful of fast fundraises snap Asia out of its slump; investment gravitates towards developed markets and manufacturing
Japanese LPs: Expectation vs reality
Japan’s LP community is an alluring target for global private equity managers, even as currency depreciation and a cultural aversion to risk remain obstacles in the short and long term
GP profile: ShawKwei & Partners
Helping Asian manufacturers climb the product value chain and lock in multinational customers is a key part of the ShawKwei & Partners thesis. It sees no reason to change, even amid sector volatility
India mass market: Bharat dreams
A labyrinth of logistical, cultural, competition, and business modelling challenges is curbing private equity appetite for India’s quickly modernising proletariat
China semiconductor: Casualties of war
Private equity investment in China’s semiconductor industry continues unabated despite intensifying US regulatory action. While start-ups are not explicitly targeted, many are feeling the heat
Portfolio: Advantage Partners and Elise Fashion
Advantage Partners acquired Vietnamese women’s apparel retailer Elise Fashion with a view to integrating manufacturing, design, and distribution into a leaner operation with a more international profile
Korea: A good time to be different?
Macroeconomic uncertainty and liquidity risk are pushing Korean private equity firms to think beyond buyouts, double down on operational capabilities, and consider all their exit options
Deal financing: Homegrown solutions
Private equity firms are relying more heavily on Asia-based debt investors to support leveraged buyouts amid a loan logjam in the US, highlighting the region’s innovation and durability
Japan middle market: Crowded field
The expansion of Japan’s middle-market private equity scene has not kept pace with the rise in global investor interest. Spiking competition is inducing GP formation, but impediments are myriad
GP profile: CMC Capital Partners
China-focused CMC Capital Partners’ remit has expanded from media to consumer and technology, but the firm believes its knowledge and discipline as a specialist investor have never been more relevant
Japan carve-outs: Improving the old
Private equity investors are keen to acquire mature but unloved assets from Japanese corporates and reposition them for growth. Execution is seldom straightforward, and size often means complexity
Mobility: Batteries and beyond
The electrification of transportation has created a wealth of opportunities in energy saving and storage. Investors across Asia – led by China – are looking at batteries and other technologies
Energy transition case study: Hermina and AIG
Healthcare is not a particularly energy-intensive industry, but specialists such as Quadria Capital are tightening up operations where possible at hospitals
Energy transition case study: The Arnott’s Group
Having acquired Australian snacks producer The Arnott’s Group under its long-dated strategy, KKR hopes to make an enduring impact on sustainable sourcing and energy conservation
Energy transition case study: Beyonics
Precision manufacturer Beyonics has cut back on truck journeys, switched to gas-fired power, and automated its factories – in the pursuit of efficiencies rather than as part of a specific energy agenda
Energy transition case study: Towngas Smart Energy
Towngas Smart Energy wants to offer solar and energy management solutions to its existing piped gas customers across China’s industrial parks. Affinity Equity Partners is supporting the rollout
Energy transition case study: GLP
GLP’s sprawling warehousing and transport interests offer a unique view of the myriad energy issues that permeate the logistics value chain. Tech and common sense are the primary maintenance tools
Alternative fuels: Burning questions
From the landfill to the inside of atoms, the alternative fuels angle on energy transition gives investors a range of risk profiles to consider. Developed economies are the primary playgrounds