Opinion
Five trends for 2018
AVCJ looks at how its 2017 predictions turned out and identifies some key themes for the year ahead
Simply the best: 17 years of the AVCJ Awards
The original concept for the AVCJ Private Equity & Venture Capital Awards was straightforward: to create a “fun” event that also recognized excellence in the industry in Asia.
India IPOs: Open window
Record public market valuations have facilitated a wave of private equity-backed IPOs on Indian bourses.
Intractable tech
Even if pan-Asian buyout firms aren't actively pursuing investments in internet-related businesses, they cannot ignore the potential disruptive impact of these technologies on other portfolio companies
A significant birthday
Among the various events that have contributed to the development of private equity in Asia over the 30 years since AVCJ was established, three stand out as particular game changers
Global buyout firms: Change at the top
Succession planning initiatives at the leading global buyout firms reflect the increasing diversification of these platforms - and that the personality-types so instrumental in their creation probably won't be seen again
China M&A: Common ground
Chinese outbound M&A is stigmatized at the moment due to concerns about regulatory barriers both foreign and domestic, but buyers and sellers can reach mutually beneficial compromises
China M&A: Exit options
The growth in outbound M&A among Chinese investors has created significant exit opportunities for PE investors
Japan secondary buyouts: Hand to hand
A series of recent lucrative exits by Japanese GPs have shown that secondary buyouts in the country can deliver
Japan carve-outs: Slow burn story
Toshiba Memory Corporation is set to become Asia'a largest-ever PE buyout, if the deal goes through in its current form. But this doesn't necessarily mean the path to corporate divestments in Japan will become smoother
Succession planning: Ending an era
Succession planning is quickly becoming a strategic priority across Asia Pacific. In Australia, GPs are looking into a number of different ways to make it work
Australia exits: Closed window
Exit activity in Australia has followed a boom and bust pattern in recent years. Investors are consequently cautious about near-term IPO potential but not inactive
China outbound M&A: Within the rules
Changes to China's overseas M&A guidance could mean changes for investors in the country seeking to purchase foreign assets
Fundraising: The LP angle
On a recent US trip North American LPs shared their views of the institutional funding zeitgeist
Co-working spaces: Space jam
Amid the proliferation of co-working spaces in Asia and soaring valuations, investors must prepare for the inevitable industry shakeout
Hong Kong tax: Still no certainty
The Financial Services Development Council has criticized Hong Kong's tax exemption for offshore PE funds - and with good reason. It remains to be seen if regulators have the will to respond the group's proposals
Alternatives: Times of plenty
The Willis Towers Watson global alternatives survey offers few surprises in terms of where investors are putting their capital, but there are some interesting developments in which investors are providing it
Asian club deals: Big ambitions
A resurgence in club deal activity has proven symptomatic of the evolution of Asia's private equity buyout market. But while the structure and the nature of deals has changed, the underlying rationale remains fixed
PE in Southeast Asia: Buyout blues
Private equity interest in Southeast Asia has yet to translate into a significant number of buyout deals. The region's sturdy economic fundamentals may prolong the stagnation
US LPs & co-investment: Risk appetite
There are various practical reasons - concerning legal, oversight and human reasons - why US pension funds are not as aggressive as their Canadian peers in private equity. A change in mindset would also be helpful
Japanese LPs: Building consensus
Japanese institutional investors are taking their time with decisions about launching alternative investment programs. Strong support from internal stakeholders is a key consideration
Private equity and data centers: Get connected
With demand for outsourced data center services poised to take off in Asia, private equity investors are looking for ways to participate in the growth story
Japan private equity: Heating up
Private equity is seeing more succession planning and corporate carve-out opportunities in Japan, but there is a risk that exuberance might turn irrational
Asia fundraising: Demand and supply
Capital is pouring into the asset class, globally and in Asia, to the benefit of brand-name buyout managers. Deploying a large fund in Asia means squeezing as much deal flow as possible out of each jurisdiction