APER 2018 Year End Data PDF

A Monthly Report on Direct Equity Investment in Asia REVIEW
www.asiape.com March 2019

Greater China Edition
亞洲直接投資評論
大中華版
Cascade of
IPOs
INVESTMENT
The Price of Health

CASE STUDY
Teething Pains
Contents March 2019
p.6 REGULATORY
National Interest............ p.14
INSTITUTIONAL INVESTORS
Management
Goodbye to State Perks. p.17
Funds / Investments /
Divestments ................... p.20
SNAPSHOT: 2018 DATA ... p.22
NEWS.................................... p.26
AUSTRALIA/NEW ZEALAND
Divestments ................... p.30
GREATER CHINA
Investments: Healthcare
FEATURE
The Price of Health...... p.31
Cascade of IPOs Funds / Investments /

Divestments ................... p.34
The rush to IPO by an unusually high number of PE-backed
Chinese companies during 2H 2018, despite lacklustre post-IPO
performance, is set to embellish China’s benchmark returns ... The Price of Health
Privatisation of iKang highlights
the value of China’s healthcare
REGULATORY INSTITUTIONAL INVESTORS assets ...
National Interest Goodbye to State Perks p.31
New regulatory measures that Sovereign wealth and

safeguard national interest are set government-sponsored funds
to be a feature for 2019 ... witness en masse resignations of
senior managers ...
p.14 p.17
Asia Private Equity Review Subscriptions and Enquiries: info@asiape.com

Publisher and Editor Writing and Research Design and Layout © Copyright
Kathleen Ng WK Ip Henry Lo Ryan Tang Eric Chui Centre for Asia Private Equity Research Ltd.
G/F., 1 Lung King Street, Wanchai, Hong Kong
Jerry Chan Joshua Ma Catherine Ng Tel: (852) 2861 0102 Fax: (852) 2529 6816
Cyrus Cheung Dicken Sin e-mail: editorial@asiape.com, info@asiape.com URL: www.asiape.com
ISSN NO: 1561-9095
INDIA JAPAN/SOUTH KOREA
Case Study: Bankruptcy Funds / Investments /

Divestments ................... p.42
Teething Pains............... p.36
Fund Management SOUTHEAST ASIA
Thriving in Taj............... p.38 Funds / Investments /

Divestments ................... p.43
Divestments ................... p.41 PAN-ASIA/REST OF THE WORLD
Teething Pains Divestments .................... p.44
Farcical episodes in a bankruptcy
court in India highlight lack
REAL ASSETS ................... p.45
of understanding of basic
requirements to reverse
insolvency ... SUBSCRIBERS’
WEEKLY SUMMARY......... p.46
p.36
PEOPLE
ON THE MOVE................. p.46
STREET TALK.................... p.47
EXCHANGE RATES.......... p.48
DEAL SUMMARY............... p.53

Thriving in Taj
India’s private equity evolves
in tandem with the country
envious economic growth and
government’s policies to reduce
NPLs ...
p.38
A Monthly Report on Direct Equity Investment in Asia
28th February, 2019
Dear Subscriber,
Snapshot - 2018 Data

a 4-page synopsis of our 200-page yearly data report
released on 31st January 2019
p.22-25
For Asia’s largest economy, China, 2018 was an extraordinary year. Aggravated by the trade war that erupted
in July, its gross domestic product slowed to 6.6%, the slowest in 28 years. In anticipation of an “economic
winter” in 2019, astute private equity investors with China-based assets took unprecedented steps to help their
portfolio companies access liquidity. This gave shape to the 2018 divestment landscape as one with an unusually
high number of IPOs.
As the share lock-ups of these IPOs begin to expire, Cascade of IPOs p.6-13 reviews the post-IPO
performances of the many 2018 listings and reveals the critical factor behind their positive performance results,
on the books. It answers the question of whether the rush to the IPO altar was an astute move –
• 47 IPOs, but only 3 were able to record distributions
• over 63% of this pool of listed companies have been trading below their IPO prices
• but close to 90% of the investments committed pre-IPO are profitable, when compared to the 30-days
volume weighted average share price on 15th February, due to astute entry prices
• a capital return bonanza is anticipated in the coming few years when an estimated US$46.7 billion in residual
value is expected to be realised
Entry valuations remain highly subjective and investors are prepared to compete for deals by paying lofty
premiums for China-based assets. The Price of Health p.31-33 shares the varying valuations of one of the
most contested healthcare assets in China, iKang Healthcare Group Inc (‘iKang’). iKang received six privatisation
proposals over a period of three-and-a-half years. Yunfeng Capital and others eventually won the deal by including
a marquee list of investors and paying a price-to-earnings ratio of 83.6 times.
At a time when economic growth in China is slipping and uncertainty surrounds the ultimate outcome with
regard to its trade dispute with the US, India’s private equity industry is enjoying a boom. For India, 2018 was a
thriving year. For the first time, distribution from this market, at US$14.9 billion, catapulted India to the top of
Asia’s 2018 distribution totem pole. Thriving in Taj p38-40 reviews the changes taking place in India’s fund
management industry, which is not only attracting foreign investors but also displaying its domestic firms’ fund
raising capabilities –
• fresh capital raised surged to US$7.2 billion in 2018, a 50% rise compared to the US$4.9 billion for 2017
• Bahrain-based Investcorp took over IDFC Alternative’s (‘IDFC’) private equity and real estate business.
IDFC had already sold its infrastructure assets to the US-based Global Infrastructure Partners
• India’s domestic firms are no longer lagging behind their foreign counterparts in showcasing their fund
raising capabilities –
◦◦ the US$1.3 billion EISAF II raised by Edelweiss Alternative Asset Advisors is the largest debt fund in India
◦◦ ChrysCapital Investment Advisors recently closed its latest fund, at US$850 million, one of the largest
private equity funds in India
One of the appeals of India is its landmark reform that consolidates laws for resolving insolvency and
bankruptcy. Its Insolvency and Bankruptcy Code came into effect in December 2016, but the understanding
of the Code remains skin deep. Teething Pains p36-37 traces the liquidation process of one of the leading
companies in India’s men’s fashion industry, RTIL Ltd (‘RTIL’), and the lack of knowledge of those who promoted
themselves as white knights for the insolvent company –
• the court was prepared to extend the 270-day limit in an effort to avoid ordering RTIL into liquidation
• three potential investors expressed interest in taking over RTIL, but none was able to prove their net worth
with the court, which described some of their actions as –
◦◦ a waste of time
◦◦ having misrepresented the facts
◦◦ producing unauthenticated documents
• the farcical and yet sad scenarios left the court with no choice but to order RTIL to begin the liquidation
process
March will open a new page in the digital economy with the impending initial public offering of Lyft Inc, the
archrival of Uber Technologies Inc. Lyft’s IPO will be keenly watched as it will serve as a benchmark of valuation
for the car-hailing industry, which is a pioneer in shaping the current digital economy.
We look forward to bringing to you our next exciting report on the evolving private equity industry.
Enjoy the current issue.
Yours sincerely,
Kathleen Ng
Editor & Publisher
Asia Private Equity Review
Feature
Cascade of
The unusually high number of
IPOs
IPOs during 2018, especially Key Points
in 2H, was a rush to secure ●●2018 records the highest number of IPOs of PE-backed Chinese
liquidity for PE-backed Chinese companies for a 12-month period, in particular in the 2H, suggesting a rush
companies to access liquidity in response to uncertainty arising from the trade war –
◦◦ 1H: 16
◦◦ 2H: 31
●●At these 47 IPOs, only 3 investor groups sold parcels of their shares,
suggesting the listings’ primary objectives were to access liquidity rather
than return capital to investors
●●Shares of over 63% of the companies listed in 2018 have been trading
below their IPO prices, as of 15th Feb, yet the majority of their investors
were able to book profitable results due to attractive entry pricings
●●Residual value of those listed since Jan 2018 amounts to US$46.7 bn, as of
15th Feb, suggesting capital return bonanza for the China market
6 Asia Private Equity Review March 2019

Feature
China & India - Distributions in 2017 & 2018

(US$ bn)
16
2018 is an extraordinary year for China –

• Macro –
12 ◦◦ trade friction with the US erupted
in July
◦◦ the 6.6% GDP growth for these
8
12 months is the lowest in 28 years
14.9 • Private equity –
◦◦ the US$8.7 bn in distribution is the
11.6
lowest since 2009
9.3
4 8.7 ◦◦ for the first time, distribution sum
from China-based assets is lower
than that recorded by India
0
2017 2018
China India
Fig. 1 Source: Asia Private Equity Review
The IPO Rush ( 2018)
• Coinciding with the commencement • But the aggregate amount realised

of the trade dispute between China through these 3 IPOs, tallying up to
and the US, the number of IPO has US$1.8 bn, represents only a sliver of
surged during 2H 2018, at 31, virtually the US$13.4 bn of invested capital
doubles the 16 for the preceding • There is no cash return from the
six months remaining 44 IPOs suggesting that
• At these 47 IPOs in 2018, only 3 these listings are largely events with
investor groups have sold a portion the primary objectives to access
of their shares that clock an aggregate liquidity
US$1.8 bn in distribution – • Upon expiration of share lock-ups
◦◦ US$69 m to L Catteron Asia of these 47 companies, an estimated
f r o m S a s s e u r Re a l E s t a t e US$13.4 bn of invested capital will be
Investment Trust seeking for realisation
◦◦ US$1.6 bn to Morningside Venture
Capital from Xiaomi Corp
◦◦ U S $ 5 6 . 8 m t o PAG A s i a
Capital from Tencent Music
Entertainment Group
I t is an extraordinary year that

warrants an extraordinary exit
strategy. This is 2018.
During the second quarter of
2018, trade policy differences between
(US$ bn)
8
6
(No.)
20
15
China and the US began to simmer

and subsequently led to the prevailing
4 10
“trade war” that erupted in July. The 19
toll of this dispute on Asia’s largest 6.2
economy was heavy. Its 6.6% gross 12
2 5
domestic product growth for 2018 is 3.4 9
7
the lowest in 28 years. Private equity- 1.9 1.9
backed assets in China suffered as
0 0
well. The US$8.7 billion in distribution Q1 2018 Q2 2018 Q3 2018 Q4 2018
recorded for 2018 is the lowest since Invested Cost No. of IPOs
2009, and was even surpassed by India
(Fig. 1). Fig. 2 Source: Asia PE Index
March 2019 Asia Private Equity Review7

Feature
With no certainty as to when the Rush to IPO There were 31 private equity-backed
trade friction between the world’s In the past, initial public offerings IPOs during the second half of 2018,
two largest economies will cease, (‘IPOs’) would be postponed when virtually double the 16 for the preceding
2019 has been labelled a year of public market sentiment became six months, the highest for a half-
“economic winter”. In anticipation volatile and/or uncongenial for debuts. year period.
of a capital drought, investors with Instead, as the global market reeled in Despite the exceptionally high
China-based assets took unprecedented response to the trade war and Hong number of private equity-backed
steps to help their portfolio companies Kong’s Hang Seng Index dived without companies that secured listed status
access liquidity. arrest, the number of debuts surged. during 2018, only three returned capital
Perching on Door to Realisation (Jul 2018 – Jun 2019)

(US$ bn) (No.)
7 20
19
• Aug 2018 marks the beginning of moratorium
6 expiration of those IPOs that took place
16 earlier in the year with a total of US$46.7 bn in
15
5 residual value, based on the 30-days VWASP
as of 15th Feb 2019
4 • 1H 2019 sees highest number of lock-up
10 expirations as well as largest pool of residual
3 28.4
value seeking to be realised, 35 that represents
US$41.3 bn
2 6
5 5
NB:
12.9 • quarters shown correspond to the period when share
1 lock-ups of earlier IPOs expire
6.2 • Q3 2018 only commences from Aug 2018
3.9 <0.1 <0.1 0.6 4.4
0 1.9 0.9 1.5 0 • survey excludes the Taiwan-listed Shane Global Holding
Q3 2018 Q4 2018 Q1 2019 Q2 2019 Inc as it is unclear whether the applicable investor
group is subject to lock-up
Invested Cost Residual Value(1) Realised Value No. of Companies (1)
based on 30-days VWASP as of 15th February 2019
Fig. 3 Source: Asia PE Index
Post-IPO Performance (Aug 2018 – Jun 2019)
By Company By Investment Positions

(%) 6 5 19 16 (%) 26 21 112 68
100 100 • As of 15th Feb, while the share prices of
20% more than 63% of those companies listed
26.3% since beginning of 2018 are trading well
80 80 below their IPO prices, majority of the
50% 50%
61.9% investors’ holding positions are able to
book positive return results, due to astute
60 60
90.2% entry prices
96.2% 95.6% • In these 46 companies being surveyed,
there are 227 known investment positions/
40 80% 40
73.7% rounds. Based on the 30-days VWASP as
of 15th Feb, compared with the entry prices
50% 50% of these 227 rounds –
20 20 38.1%
◦◦ 204 book positive results
◦◦ 23 book negative results
9.8% further underscoring the critical importance
0 0 3.8% 4.4%
Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2018 Q4 2018 Q1 2019 Q2 2019 of modest entry pricings
% of Companies above IPO Price(1) % of Investment Position at Gain(2)
% of Companies below IPO Price (1)
% of Investment Position at Loss(2)
NB: (1)
• quarters shown correspond to the period when share lock-ups of earlier (2)
performance is derived from comparing entry price of each round of
IPOs expire investment by PE investors and the 30-days VWASP as of 15th February
• Q3 2018 only commences from Aug 2018 2019
• survey excludes the Taiwan-listed Shane Global Holding Inc as it is unclear
whether the applicable investor group is subject to lock-up

Feature
Projected Cumulative Distribution (Aug 2018 Onward)
Even Monthly Share Disposal – 36-Month Period

(US$ bn) US$46.7 bn
50
40
US$35.4 bn
30
20
US$15.4 bn
10
0
Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec
2018 2019 2020 2021
36 months
2nd year, being 2020, when the cumulative sum
is expected to reach US$35.4 bn, will enjoy the
largest sum of capital being returned, estimated
to be around US$20 bn
Even Monthly Share Disposal – 60-Month Period

(US$ bn) US$46.7 bn
50
40 US$40.8 bn
30 US$30 bn
20 US$19.3 bn
10
US$8.4 bn
0
Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec Apr Aug Dec
2018 2019 2020 2021 2022 2023
60 months
In the 3 years from 2020 to 2022, an estimated
total of US$32.4 bn being returned, with no
less than US$10.7 bn for each year
NB:
• the investment in Taiwan-listed Shane Global Holding Inc by CDIB Capital is dropped
from this analysis as it is unclear whether the investor is subject to lock-up
• projected amount shown is cumulative
(1)

Feature
to their investors during their IPOs. IPO prices. estimated amount would be US$15.4
The cascade of IPOs only serves to T hanks to the astute entr y billion; US$20 billion in the ensuing
affirm the observation that the primary pricing undertaken by investors when year; and US$11.3 billion in the third
objectives of such liquidity events were commitments were made, most were and final year.
to access liquidity rather than return able to book positive results. Of the Assuming the divestment process
capital to investors (Fig. 2). 227 investment positions undertaken stretches out to five years and the
by investors in this pool of companies, benchmark prices stay, then the sum
Waiting to Cash Out in comparing the VWASP of 15 th returned from this 2018 cascade of
Since August last year, moratoriums February and their respective entry IPOs by the end of the year would be
have been expiring for those that prices, about 90% booked positive US$8.4 billion, and US$10.7 billion and
were listed during early 2018, with an return results due to their comparatively US$5.9 billion for the third and fifth
estimated US$13.4 billion of invested modest entry prices. (Fig. 4). years, respectively (Fig. 5).
capital either currently seeking or
planning to seek either partial or full Capital Return Bonanza Observation
capital returns. It is however during the Based on Asia PE Index, which Skeptics may observe the rush
first two quarters of this year that the tracks performance results of funds’ to take companies to the IPO altar,
value releases from lock-up will be the portfolio companies, there were 300 especially during the second half of
highest, resultant from the surging list China deals invested in the ten years 2018, as too rash. This is particularly
of IPOs during the second half of last from 2007 to 2016 that achieved relevant when nine were prepared to
year (Fig. 3). liquidity results through the IPO accept IPO prices lower than their last
Yet the post-IPO performances route. It takes investors between three financing round. The IPO price of
of these listed companies are far from months to 186 months to reach fully- iDreamSky Technology Holdings Ltd,
impressive, raising the question as to realised status, with the median being a mobile game publisher, was a 55% cut
whether there is sufficient appetite 24 months. when compared with its last pre-IPO
for shares of this basket of private Taking a more conser vative investment round, a development that
equity-backed assets seeking to be approach by employing the upper illustrates the determination to gain
realised. Using the 30-day volume quartile date of 36 months as the listed status in order to access liquidity
weighted average share price of 15th benchmark period, in the three years (Fig. 6).
February (‘VWASP’), their value adds leading up to the end of 2021, China’s Astute investors have defied
up to US$46.7 billion. On the same private equity market is expected to skeptics’ pessimism. Through this
benchmark date, however, more than clock an aggregate US$46.7 billion in IPO race in 2018, especially during
63% of this pool of companies were distribution, assuming the shares would the second half of the year, they have
trading below their respective IPO be sold evenly across the 36-month reiterated and extolled the merits
prices. In particular, a staggering 37% period based on the benchmark price of of acquiring assets with discipline
were trading over 20% below their 15th February. By the end of 2019, the (Fig. 7). n
Down Rounds in 2018’s IPOs
(%)
60
• While 2018 is characterised by the high number of IPOs, it also

50 records high percentage, a near 20%, of companies accepting
lower IPO valuation compared with that applicable to the last
40 financing round before the debut
• By 2H, with the onslaught of the trade war, the mood to access
30 (6) public market liquidity is much more determined, as evidenced
by the wide disparity of the IPO price and that applicable to the
20
last financing round before the debut. The down rounds fall in –
(3) ◦◦ Q3: ranges from 7% to 29%
◦◦ Q4: ranges from 11% to 55%
10 Among the 9 with down rounds, the 55% fall of iDreamSky
Technology Holdings Ltd’s valuation, is the biggest
0
Q3 2018 Q4 2018
NB: No. in ( ) denotes number of down Rounds

Feature
Entry Value of Listed PE-backed Chinese Companies in 2018: Gain/Loss Position

% of
30-days
Investment
Company Investors - Selective IPO Price VWASP as Entry Price Range(1)
Position at
of 15th Feb
Gain(2)
Gaorang Capital, Morningside

Huami Corp venture Capital, Sequoia Capital US$11.00 US$12.41 US$0.46 - US$4.27 100%
China
Matrix Partners China, Orchid

Sunlands Online
Asia Group Management Ltd, US$11.50 US$4.57 US$1.84 - US$7.45 66.7%
Education Group
Primavera Capital Group
Lock-up Expiry: Q3 2018
IDG Capital, Legend Capital,

Bilibili Inc US$11.50 US$16.87 US$1.85 - US$5.69 100%
Qiming Venture Partners
OneSmart
Chengwei Capital, Goldman Sachs,
International US$11.00 US$8.44 US$6.09 - US$6.90 100%
The Carlyle Group
Education Group Ltd
Boyu Capital Advisory, Hillhosue

iQIYI Inc Capital Management, Sequoia US$18.00 US$18.91 US$5.12 - US$10.55 100%
Capital China
Sasseur Real Estate

L Catterton Asia S$0.80 S$0.67 S$0.41 100%
Investmnent Trust
Engage Capital, Gaorong Capital,

HUYA Inc US$12.00 US$19.73 US$3.40 100%
Morningside Venture Capital
Bain Capital, Keytone Ventures,

Huifu Payment Ltd HK$7.50 HK$3.10 HK$1.63 - HK$5.18 75%
Walden International
VCREDIT Holdings
TPG Growth HK$20.00 HK$7.19 HK$12.65 0%
Ltd
DCM Ventures, Hillhouse Capital

Uxin Ltd US$9.00 US$3.56 US$0.78 - US$8.94 33.3%
Management, KKR & Co
Wise Talent Matrix Partners China, Shenzhen

Information Huatai Ruilin Fund Investment HK$33.00 HK$25.71 HK$14.4 - HK$16.42 100%
Technology Co Ltd Partnership, Warburg Pincus

Feature
Entry Value of Listed PE-backed Chinese Companies in 2018: Gain/Loss Position (cont’d)
% of
30-days
Investment
Position at
of 15th Feb
Gain(2)
IDG Capital, Matrix Partners

Xiaomi Corp China, Morningside Venture HK$17.00 HK$10.37 HK$0.02 - HK$12.19 66.7%
Capital
Inke Ltd GSR Ventures, SAIF Partners HK$3.85 HK$2.03 HK$0.14 - HK$0.18 100%
Cowin Venture Capital, GF Xinde

Qeeka Home Investment Management Co Ltd,
HK$4.85 HK$3.53 HK$0.85 - HK$4.71 66.7%
(Cayman) Inc Orchid Asia Group Management
Ltd
51 Credit Card Inc HG Capital, Tiantu Capital HK$8.50 HK$4.75 HK$4.8 - HK$7.78 0%
Aurora Mobile Ltd IDG Capital, Mandra Capital US$8.50 US$7.98 US$0.3- US$0.41 100%
IDG capital, Lightspeed China

Pinduoduo Inc US$19.00 US$26.66 US$0.64 - US$9.93 100%
Partners, Sequoia Capital China
Primavera Capital Group, Warburg

Cango Inc US$11.00 US$7.28 US$2.73 - US$5.76 100%
Pincus
C-Bridge Capital GP Ltd,

Ascletis Pharma Inc Goldmand Sachs, Qianhai Equity HK$14.00 HK$6.43 HK$4.14 - HK$6.50 66.7%
Fund LP
Hope Education
China Everbright Ltd HK$1.92 HK$0.95 HK$0.69 100%

Group Co Ltd
111 Inc ClearVue Partners US$14.00 US$8.70 US$2.94 100%
China International Capital Corp,

NIO Inc CITIC Capital Holdings Ltd, US$6.26 US$7.33 US$1.56 - US$5.35 100%
Hillhouse Capital Management
CMC Capital Holdings Ltd,

Qutoutiao Inc Lighthouse Capital, Shunwei US$7.00 US$9.62 US$2.40 - US$5.90 100%
Capital partners
Ally Bridge, ARCH Ventyres

Hua Medicine HK$8.28 HK$8.30 HK$0.57 - HK$6.96 100%
Partners, Venrock Associates
China International Capital Corp,

Meituan Dianping Sequoia Capital China, Tiger HK$69.00 HK$49.50 HK$0.94 - HK$58.19 85%
Global Management
Morningside Venture Capital,

Viomi Technology Co
Sequoia Capital China, Shunwei US$9.00 US$7.95 US$0.20 - US$3.30 100%
Ltd
Capital partners
GGV Capital, IDG Capital,

LAIX Inc US$12.50 US$10.82 US$2.06 - US$9.44 100%
Trustbridge Partners
Qiming Venture Partners, Sequoia

CooTek (Cayman) Inc US$12.00 US$11.77 US$1.43 - US$11.15 100%
Capital China, SIG China
China Renaissance Chengwai Capital, Sequoia Capital

HK$31.80 HK$21.04 HK$5.11 - HK$12.03 100%
Holdings China, Trustbridge Partners
Shanghai Aiyingshi
Partners Group Rmb19.95 Rmb37.39 Rmb10.12 100%
Co Ltd

Feature
Entry Value of Listed PE-backed Chinese Companies in 2018: Gain/Loss Position (cont’d)
% of
30-days
Investment
Position at
of 15th Feb
Gain(2)
Niu Technologies GGV Capital, IDG Capital US$9.00 US$7.63 US$4.16- US$5.78 100%
Pintec Technology Mandra Capital, Shunwei Capital

US$11.88 US$10.98 US$2.07 - US$9.14 100%
Holdings Limited Partners
Legend Capital, Lilly Asia

Innovent Biologics Inc Ventures, Hillhouse Capital HK$13.98 HK$20.88 HK$1.44 - HK$11.05 100%
Management
Ping An Healthcare
ClearVue Partners, IDG Capital,
and Technology Co HK$54.80 HK$33.70 HK$28.03 100%
New Alliance Capital
Ltd
Ally Bridge Griup, Boyu Capital

Wuxi AppTec Co Ltd Advisory, Hillhouse Capital Rmb21.60 Rmb79.19 Rmb24.08 - 27.32 100%
Management
Vision Knight Capital, Zheshang

Weidai Ltd US$10.00 US$11.02 US$0.32 - US$11.52 50%
Venture Capital
Bertelsmann Asia Investment,

TuanChe Ltd Highland Capital Partners, K2 US$7.80 US$6.45 US$0.52 - US$2.61 100%
Venture
Tongcheng-Elong Boyu Capital Advisory, Ocean

HK$9.80 HK$13.62 HK$8.30 - HK$10.12 100%
Holdings Limited Link, Oriza Holdings
Danfu Capital, HG Capital,

BabyTree Group HK$6.80 HK$6.44 HK$3.06 - HK$4.89 100%
Wu Capital
Ecovacs Robotics Co
IDG-Accel Partners Rmb20.02 Rmb49.76 Rmb4.12 100%
Ld
Gaorong Capital, IDG Capital

MOGU Inc Partners, Qiming Ventures US$14.00 US$16.91 US$3.84 - US$23.15 81.8%
Partners
iDreamSky Legend Capital, Fortune Venture

Technology Holdings Capital, Greenwood Asset HK$6.60 HK$6.08 HK$3.35 - HK$4.90 100%
Ltd Management
Tencent Music
PAG Asia Capital US$13.00 US$14.66 US$1.08 100%
Entertainment Group
Contemporary Boyu Capital Advisory, China

Amperex Technology International Capital Corp, Legend Rmb25.14 Rmb77.82 Rmb13.12 - Rmb43.27 100%
Co Ltd Capital
Natural Food
SAIF Partners HK$1.62 HK$1.43 HK$0.24 100%
International Group
CBC Capital, CITIC Capital

AsiaInfo Technologies
Partners, CITIC Private equity HK$10.50 HK$10.39 HK$5.85 - HK$7.54 100%
Limited
Funds Management Co Ltd
based on publicly available information and best estimates

(1)

(2)
VWASP = volume-weight average share price
Fig. 7 Compiled by: Asia PE Index, APER PE Entry/Exit Value

Regulatory
National F ebruary 1, 2019 – India’s new

e-commerce law goes into effect
and the share prices of its two
largest foreign e-commerce operators,
Interest
Amazon.com Inc (‘Amazon’) and
Walmart Inc (‘Walmart’), fall.
Ironically, instead of recognising
the stupendous valuation of the US$16
billion sale of its largest e-commerce
play, Flipkart Pte Ltd, to the US retail
giant, India’s new piece of e-commerce
Recent regulatory policies by various nations share the regulation calls for both Amazon and
common goal of protecting the interest of their populace Walmart to re-align their business
models in the country and gives
new meanings to their earnings in
Key Points this market.
Five days after this new e-commerce
●●Trade war between China and the US and digitisation of the global economy regulation came into effect, according to
are impetus for nations to implement regulations to safeguard their welfare – The Economic Times of India, a report by
◦◦ China tightens control over shadow banking and generic drug procurement Morgan Stanley suggested that Walmart
◦◦ India’s new e-commerce regulations put new meanings on earnings of could exit from India’s “complicated”
foreign players such as Amazon and Walmart, with Morgan Stanley surmising e-commerce market.
Walmart could exit from India’s e-commerce market As Prime Minister Narendra Modi’s
◦◦ Vietnam’s new cybersecurity law tightens content of social media, with government seeks another term in
Facebook being reprimanded office, the new e-commerce regulation
◦◦ Indonesia is to impose minimum tariffs on drivers’ fares and set limits serves the dual purposes of winning
on promotional discounts, which could hamper growth potential of ride- populace votes as well as providing a
hailing operators fair chance for domestic smaller players
to grow.
In China, policy makers are
focusing on reigning in the domestic
wayward shadow banking sector, to
prevent individuals from overloading
their personal debt pile. Effective from
14th January, all e-payment platforms are
no longer permitted to escrow funds
for purchases; such amounts have
to go through the online settlement
platform established by the People’s
Bank of China. In tandem with this new
regulation on e-payment operations,
regulators in Asia’s largest economy also
made known their intention to take over
the procurement process of generic
drugs, with 11 cities being selected for
the pilot roll-out. The pilot scheme will
take place sometime during the first
quarter of the year, with the goal of
Reprint of article published in the
ensuring that affordable generic drugs
13th Feb, 2019 Subscribers’ Weekly
are available to all (Fig. 8).

Regulatory
Comments move is seen to target one of the most as a measure to promote and protect the
As India’s new e-commerce law popular Chinese social media apps in country’s “champions”.
takes effect, the country’s Minister India, TikTok, which is operated by In this new world order, along
of Electronics & IT is proposing Beijing Bytedance Technology Co Ltd. with digitisation of the economy
a regulation that would tighten Both China and India are far from that has broken territorial barriers,
control over foreign social media being alone in employing regulatory the rapidly changing global economic
apps providers that have enlisted measures to safeguard the welfare of landscape has given nations cause to
more than 5 million users, according their own nations. On 5th February, implement a thorn of regulations.
to Financial Times. Such foreign Europe’s largest economy, Germany, While these policies are expressions of
operators must set up an office in unveiled its plan to “protect” national “national interest”, ironically, they are
India with a senior executive being treasures. The policy would bar also policies that are empowering the
accountable for legal issues. The unwanted foreign takeovers and is seen states to be the final umpires. n
New Regulatory Measures in Asian Countries

China
Effective from 14 Jan
th Effective from 9th Jan
• all payment institutions must close their escrow • video apps are held responsible for all
accounts for funds held for goods of the selling “harmful” content posted. The industry
and buying parties association named 100 types of inappropriate
• e-payment transactions have to go through the contents
online settlement platform established by the
People’s Bank of China
Objectives Objectives
Shadow Video
Banking • to prevent operators of payment institutions Apps • to tighten control on the media
to utilise the funds in the escrow accounts • to encourage more active lifestyle, especially for
to generate interest and investment incomes, the millennials, instead of being engrossed in
which have been a core revenue stream for video apps
these operators
Major Players Major Players
Alipay and WeChat Pay account for more than short video apps TikTok and Kuaishou, which
90% of China’s e-payment market share are operated by Bytedance and Beijing Kuaishou
Technology Co Ltd, respectively
Effective Sometime during Q1 14th Jan
• State Council announces, on 17th Jan, its plan to • State Administration of Foreign Exchange
centralise procurement of generic drugs in 11 doubles the aggregate amount that QFII can
cities, including Beijing, Guangzhou, Shanghai invest in the country, from US$150 bn to
and Shenzhen, for one year US$300 bn
• this follows a trial period of centralised • QFII began in 2002 and at that time, the
procurement in September 2018 which results amount allowable for each of the foreign
in an average 52% reduction of cost institution to invest in China was US$800 m
• a 30% pre-payment from the government
to drug producers to ensure that the drug
producers would receive the payments without
delay
Generic Objectives Financial 28th Jan
Drugs • to ensure affordable generic drugs are available Market • The People’s Bank of China and the China’s
to all National Association of Financial Market
• to clamp down inflated medical costs as a result Institutional Investors announce the approval
of pricy drugs of allowing S&P Global, a US-based credit
rating agency, to conduct bond credit rating
business in China via its wholly-owned unit in
the domestic market. It is the first time that
a foreign credit rating agency is permitted to
conduct such business in China
Objectives
• to attract foreign capital and to open the
domestic financial market so as to introduce
international financial market practices

Regulatory
New Regulatory Measures in Asian Countries (cont’d)

India
Effective from 1 Feb 2019
st
Objectives
• e-commerce marketplaces, owned and operated by • to protect the domestic small and medium
foreign investors, are prohibited from selling goods enterprises from both domestic and foreign
sold by businesses in which they hold an equity stake behemoths and to provide room for domestic
• the new rules would define retailers that sell players to grow
more than 25% of their goods online to a single
e-commerce company as being controlled by
that company. Foreign direct investment in these
e-commerce platforms are therefore not allowed
Major Domestic & Foreign Players
E-Commerce
• Amazon holds equity interest in – • Walmart holds an approximate 77% stake of
◦◦ Cloudtail India – a joint venture between Amazon Flipkart that reportedly posted US$4.6 bn in sales in
and Catamaran Advisors the fiscal year ended 31st March 2018
◦◦ Appario – a joint venture between Amazon and • Reliance Industries is to roll out a new e-commerce
the Patni Group platform by combining its telecom and retail units,
(To comply with the new e-commerce regulation, Amazon is namely Reliance Jio and Reliance Retail
known to have pared down its interest in Prione Business
Services Pvt Ltd (‘Prione’) to 24%, from the previous
49%. Prione is the parent company of Cloudtail India
which has been Amazon’s e-commerce platform in India.
Correspondingly, Catamaran Advisors has lifted its stake in
Prione to 76%, from the previous 51%)
Vietnam
Effective from Jan 2019 Objectives
• cybersecurity law: internet companies must remove • to ensure social media content is in line with the
“toxic content” and hand over user data when state’s policies, although Vietnam’s move is being
Social requested by authorities criticised by both the US and the European Union
Media • Facebook Inc (‘Facebook’) becomes the first to have
received the reprimand for refusing to follow this
edict
Major Players
Facebook, Alphabet Inc, Yeah1 Group Corp
Indonesia & the Philippines
The Philippines Indonesia
• The Philippine Land Transportation Franchising • to impose minimum tariffs on fares that drivers
and Regulatory Board has rejected application from receive from ride-hailing companies, and set limits
Indonesia’s PT Go-Jek Indonesia (‘Go-Jek’) to on promotional discounts
operate in the country • regulation for motor bike-hailing is expected to
• a local regulation requires local individuals or entities come into effect in March 2019, while that for car-
to own 60% of a transport network company in hailing would be implemented from June 2019
the Philippines
• Go-Jek’s Philippines unit, Velox Technology
Ride- Philippines, is believed to be 99.9% held by
Hailing Singapore-based entities
• Go-Jek is in talks with the local regulators to have its
application reconsidered
Objectives Objectives
• to ensure domestic operators are provided a chance • to ensure drivers earn an sustainable income and
to grow prevent them from overworking, but the move
could curb ride-hailing operators’ growth potentials
Major Players
Grab Holdings Inc and Go-Jek
Fig. 8 Compiled by: Asia Private Equity Review

Institutional Investors – Management
Goodbye to
State Perks Reprint of article published in the
22nd Feb, 2019 Subscribers’ Weekly
Senior managers at Asia’s SWFs and government-sponsored funds are leaving in droves
Key Points
●●2018’s Asian institutional industry is characterised by en masse departures of
N ormally, it is either multi-
billion dollar deals or outsized
distributions that characterise
Asian institutional investors’ investment
dynamics (Fig. 9). But in 2018, it was
senior managers –
◦◦ Australia: Future Fund’s PE chief leaves along with 2 other team members neither; instead it was the alarmingly
◦◦ Japan: JIC’s president & CEO resigns along with 8 other directors high number of senior management
◦◦ Malaysia: Khazanah, EPF, PNB and KWAP, among the country’s largest turnovers taking place in various
institutions, record changes to their senior executive line-up sovereign wealth and government-
sponsored funds. In a surprising shift
●●Temasek’s Fullerton, on the other hand, beefs up its PE resources and names that even countered cultural norms
new recruits in some cases, these departures were
“en masse”.

Resignations en Masse The Two Largest Deals & Divestments by SWFs/Govt-sponsored Funds
Just before the end of 2018, Future
(2016 – 2018)
Fund Management Agency (‘Future
Fund’), Australia’s sovereign wealth Deals
fund (‘SWF’), which had A$148.8 billion Investors Company Location Size
(US$107.4 billion) under management 2018
as of 30th September 2018, announced
the departure of Mr Steve Byrom, who Baillie Gifford, CPP Investment
Board, Discovery Capital, General
had been named head of the SWF’s Atlantic, GIC Pte Ltd, Janchor
private equity unit back in March of Partners Ltd, Primavera Capital,
Ant Financial
the same year. RNT Capital, Silver Lake Partners, China 14
Services Group
Joining Mr Byrom in leaving the Temasek Holdings (Pte) Ltd,
Future Fund were Mr David Simons, a The Carlyle Group, T. Rowe Price
Associates Inc, Warburg Pincus,
director, and Ms Jasmina Osmanovic, Khazanah Nasional Bhd
an investment director. The trio have
set up their own fund management AkzoNobel Specialty
GIC Pte Ltd, The Carlyle Group Netherlands 11.7
Chemicals
firm, Potentum Partners, which offers
multi-family office-styled investment 2017
solutions to new and large institutional Caisse de dépôt et placement du
investors in private equity. Québec, National Pension Service, Team Health
USA 6.1
Both Messrs Byrom and Simons Public Sector Pension Investment Holdings Inc
had been with Future Fund for over Board, The Blackstone Group
a decade. GIC Pte Ltd, HgCapital, Visma Group
It was however the group departure Norway 5.3
Intermediate Capital Group, Montagu Holdings
of the new management of Japan 2016
Investment Corp (‘JIC’) that speaks
to the assertiveness of senior managers GIC Pte Ltd, Hellman & Friedman,
MultiPlan Inc USA 7.5
Leonard Green & Partners
of government-sponsored investment
funds. The en masse resignations are Future Fund, Global Infrastructure Port of Melbourne
Australia 7.3
particularly remarkable in Japan where Partners, OMERS, QIC Corp (50-year lease)
the social norm is complete obedience All amounts in US$ bn
NB: Names in bold are those Asia-based government affiliated funds
to corporate decisions.
JIC was formed in September 2018 Distribution
as a continuation of the nine-year old Investor(s) Company Location Size
public-private investment company,
Innovation Network Corporation of 2018
Japan. Its mandate is to actively scout Accel Partners India, Chiratae
for opportunities outside of Japan. The Venture, GIC Pte Ltd, Greenoake
new management had yet to celebrate Capital, Kalaari Capital Advisors, Flipkart Pte Ltd India 8.3
SoftBank Vision Fund, Tiger Global
its third month in office when Mr Management
Masaaki Tanaka, president and chief
executive officer of JIC, announced Renesas Electronics
INCJ Ltd Japan 3
Corp
his resignation, along with eight other
directors. In his public statement, Mr 2017
Tanaka indicated that the resignation Renesas Electronics
INCJ Ltd Japan 2.6
resulted from a disagreement with Corp
the Ministry of Economy, Trade INCJ Ltd Landis+Gyr Switzerland 1
and Industry (‘METI’), which was
2016
believed to have retracted an earlier
wage adjustment. Alibaba Group
Temasek Holdings (Pte) Ltd China 0.9
Holding Ltd
Minister Hiroshige Seko of
METI described the departure of the GIC Special Investment Pte Ltd Avolon Holdings Ltd Ireland 0.4
nine executives from JIC as a “gut-
All amounts in US$ bn
wrenching” event, but maintained that NB: Names in bold are those Asia-based government affiliated funds
“we cannot just stay where we are”.
But when compared with the
systematic changes in Malaysia’s

institutional community, the resignations transition” under the new government. government’s investment fund, new
from JIC are only a side show. Since then, the list of Malaysia- blood was recently recr uited to
Just weeks after taking office, based institutions that bid adieu to their bolster the resources of its subsidiary,
in May last year, Prime Minister senior executives while welcoming a new Fuller ton Fund Management
Mahathir Mohamad, perhaps the team has grown to include Employees Company Ltd (‘Fullerton’). Among
world’s oldest head of state, then at 93, Provident Fund, Per modalan the list of appointments is Mr Tan Huck
commenced making sweeping changes Nasional Bhd and Kumpulan Wang Khim, who joined in December 2018
to his country’s government-affiliated Persaraan (Diperbadankan). as head of private equity. Mr Tan was
investment institutions. He took over Outside of Asia, Saudi Arabia’s previously a partner of Credit Suisse’s
the chairmanship of the country’s Public Investment Fund (‘PIF’), the Customized Fund Investment Group.
sovereign wealth fund, Khazanah kingdom’s SWF, lost two key figures, Fullerton also added Mr Kenneth Chia
Nasional Bhd (‘Khazanah’) following its chief of public investments and an as vice president in Mr Tan’s division.
resignations of all members of the associate in private equity, both had The unusual management turnover
Board of Directors and other managing served there less than 18 months (Fig. 10). patterns in SWFs and government-
directors of Khazanah. According to sponsored funds highlight that these
a public statement from Khazanah, Comments managers are no longer the prototype
the senior management change is But in the house of Temasek of civil servants; instead they strive to
to facilitate a “smooth and orderly Holdings (Pte) Ltd, the Singapore excel and are results-oriented. n
Resignations en Masse in SWFs /Govt-sponsored Funds ( 2018)

Month Market SWF/Govt-sponsored Fund Senior Management Departures/Positions
Mr Steve Byrom, head of Private Equity;

Australia Future Fund Mr David Simons, director;
Ms Jasmina Osmanovic, investment director
Dec
Mr Masaki Tanaka, president & chief executive officer
Japan Japan Investment Corp
plus eight directors
Kumpulan Wang Persaraan Mr Wan Kamaruzaman Bin Wan Ahmad leaves as chief
Nov
(Diperbadankan) executive officer
Mr Datuk Shahril Ridza Ridzuan leaves as chief

Aug Employees Provident Fund executive officer to take over managing director role in
Malaysia Khazanah Nasional Bhd
Khazanah Nasional Bhd All members of the board resign

Jul
Permodalan Nasional Bhd Mr Tan Sri Abdul Wahid Omar leaves as chairman

Institutional Investors – Funds/Investments/Divestments
Funds Oregon Public Employees GIC Pte Ltd is among those that
Retirement Fund has allocated have agreed to purchase just under a
International Finance Corp US$200 million to ClearVue Partners 25% stake in the US-basedAscensus
(‘IFC’) is planning to commit III LP (‘ClearVue III’), according to LLC for an undisclosed amount.
US$20 million to Navegar Fund documents released by the pension The deal was led by Atlas Merchant
II LP (‘Navegar II’), a Philippines- fund. ClearVue III has a target size of Capital LLC.
focused private equity fund launched US$600 million. Ascensus provides recordkeeping,
by Navegar GP Ltd (‘Navegar’). The Shanghai-based ClearVue administrative and prog ramme
Navegar II has a target size of Partners focuses on the consumer management services for the retirement,
US$150 million and has the mandate sector. It had earlier taken positions education and healthcare sectors.
to invest in middle market, growth- in the Hong Kong-listed Ping An (USA)
oriented companies. Back in 2013, IFC Healthcare and Technology Co Ltd,
pledged US$20 million to Navegar’s a healthcare services platform; and
maiden fund. Nasdaq-listed Uxin Ltd, a used car Allianz Investment Management
Launched in 2013, Navegar is the trading platform. (PRC) LLC (‘Allianz’), an investment arm of
joint venture fund management firm the German insurer Allianz Group,
between the two managing partners has invested over US$200 million
Messrs Honorio Poblador IV and Javier Lilly Asia Ventures (‘Lilly Asia’) in a private debt platform of Indian
Infante, as well as the Sweden-based has commenced the fundraising financial ser vices conglomerate
hedge fund Brummer & Partners AB. exercise of its latest biomedical focused Edelweiss Financial Ser vices
(The Philippines) fund, LAV Biosciences Fund V LP, with Ltd (‘Edelweiss’). The investment is
a target size of US$750 million. Among Allianz’s first commitment to stressed
investors of this fund is Los Angeles assets area in India.
Recruit Holdings Co Ltd, the City Employees’ Retirement System. Edelweiss Alternative Asset
Japan-based human resource services Lilly Asia had recently participated Advisor s Ltd, the alter native
company, announces the launch of in the US$35 million financing round investment arm of Edelweiss, has
its latest corporate venture fund, of Elpiscience Biopharmaceuticals Co recently raised a 92 billion rupees
RSP Blockchain Fund Pte Ltd, at Ltd, a biotech company that is dedicated (US$1.3 billion) EISAF II for stressed
US$25 million. The new fund has to developing immunotherapies for assets.(India)
the mandate to invest in blockchain- treating cancer. (Pan-Asia)
related startups, primarily in overseas
markets, and has recently completed B e a c o n Ve n t u r e C a p i t a l ,
a transaction in the Israel-based Beam Investments an investment arm of Thailand’s
Development Ltd (‘Beam’). Kasikornbank Public Co Ltd, has led
Established in August 2018, Te m a s e k H o l d i n g s ( P t e ) in the US$6.5 million pre-series A
Beam is a provider of blockchains that Ltd has led in the US$85 million financing round of Jitta Dot Com Co
protects users’ transaction information series B financing round of Gracell Ltd (‘Jitta’), a local wealth management
without leaking to the third parties. Biotechnology Ltd (‘Gracell’). The deal technology firm. The latter operates
(Global) has also enlisted Lilly Asia Ventures Jitta.com, a stock analysis platform;
and Kington Capital as its investors. as well as Jitta Wealth, an automated
Gracell is a biomedical company in stock investment platform. The capital
Allianz SE (‘Allianz’), among the China that is dedicated to developing infusion would advance Jitta’s global
largest insurers in Europe, announces cellular gene therapy dr ugs for expansion.(Thailand)
increasing its capital pool for its digital treating tumours.
investment unit Allianz X GmbH Kington Capital is the private
(‘Allianz X’) to €1 billion (US$1.1 investment platform of the Suzhou INCJ Ltd, an existing investor
billion). Allianz X will use the fresh municipal government. (PRC) of Dynamic Map Platform Co Ltd
capital to make additional direct (‘DMP’), is among the party of
investments in digital companies investors that pledged up to ¥22 billion
around the globe that are strategically (US$198.6 million) to the company.
relevant for Allianz. Among Allianz DMP provides high definition 3D
X’s portfolio in Asia is US$35 million maps for autonomous driving. The
commitment to Go-Jek, Indonesia’s new capital will be used to finance
largest car-hailing operator. (Global) DMP’s acquisition of its US peer Ushr
Inc as well as DMP’s North American
operations.(Japan)

Institutional Investors – Funds/Investments/Divestments
Nordic Microfinance Initiative Bertelsmann Asia Investments Between 1995 and 2010, GIC had
(‘NMI’) is party to the 340 million is party to the US$120 million series A made two separate investment rounds
rupees (US$4.8 million) raised by Svasti financing round of Zhidao Network in CICC which is currently quoted on
Microfinance Pvt Ltd, which provides Technology Co Ltd (‘Zhidao’) which the Hong Kong bourse. (PRC)
microfinancing services to micro, provides integrated solutions for
small and medium-sized enterprises internet-connected cars. The deal was
led by women. It counts Michael led by Tencent Holdings Ltd, joined by Reid & Taylor India Ltd (‘RTIL’),
and Susan Dell Foundation and JD.com Inc. (PRC) a textile manufacturer which counts
Bamboo Capital Partners as among GIC Pte Ltd (‘GIC’) as a substantial
its early investors. investor, has been ordered by the
NMI was established in 2008 as Divestments National Company Law Tribunal
a public-private partnership between (‘Court’) to “proceed with the process
Norfund, the Norwegian Investment GIC Pte Ltd (‘GIC’) continues of liquidation”, according to a Court
Fund for Developing Countries, and a to reduce its equity interest in China document dated 5th February. This came
group of private investors. (India) International Capital Corporation Ltd after the Court has granted more than
(‘CICC’). In its latest share disposal 270 days, the time limit set under the
since 2017, GIC has sold 117.1 million 2016 Insolvency and Bankruptcy Code,
Sina Capital has led in the shares to Alibaba Group Holding Ltd for prospective investors (‘Investors’)
recent series D financing exercise for an approximate HK$1.8 billion to submit a resolution application. The
undertaken by Beijing TuSimple Future (US$232.7 million). Upon completion Court concluded that Investors, “one
Technology Co Ltd (‘TuSimple’), which of this transaction, GIC’s stake in CICC after the other misrepresented the facts,
raised US$95 million. The deal values will be less than 1%. making us no confidence to further
TuSimple at over US$1 billion. Since the beginning of the year, afford an opportunity for anybody”.
TuSimple is a developer of GIC has sold an aggregate 142.2 million Back in 2008, GIC invested 9
autonomous truck driving technology. shares that returned a total of billion rupees (US$210.2 million at
It is to expand its fleet to 50 by June, US$282.2 million. then exchange rate) for a 25.4% stake
from the current 12. (PRC) in RTIL. (India)
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Snapshot: 2018 Data
Released ...
2018 YEAR END REVIEW
DATA ISSUE
2018 Year End

AsiA PrivAte equity
A Monthly RepoRt on DiRect equity investMent in AsiA
2018 Year End Key Points

Funds
REVIEW
Data Issue
a 200-page report on the
US$104.5 bn For the first time, Fund Pool Fund Segments
Asia’s private equity
18.8% fund pool has crossed (US$ bn) Private Debt
2018
120 Secondary
5.2%
the US$100 bn mark 104.5 Real Assets(1)
0.5%
100 6.7%
87.9 Generalist
80 Growth/ 40%
Expansion
Generalist Leads with US$41.8 11.7%
Asian private equity landscape

60 US$104.5 bn
bn. Seed/Early funds
40% rank 2nd that affirms
40 Buyout
14.5%
Seed/Early
20
strong VC interest 21.4%
0 (1)
Real Assets: include those funds that focus
2017 2018 only on (i) Infrastructure (ii) Logistics (iii)
Forestry; Real Estate funds are excluded
Investments
US$166.4 bn A record high, Transaction Segments
propelled by 3 deals,
26.9% each at US$11.5 bn (US$ bn)
Volume 2018
200 Mezzanine
and above 0.1%
166.4 Seed/Early Growth/
150 16% Expansion
131.2
45.9%
Growth/ Leads in recording 100 US$166.4 bn

US$76.3 bn, that
Expansion accounts for the lion’s 50 Buyout
38%
45.9% share of the 2018
transaction volume 0
2017 2018
Divestments
US$43.8 bn 20.7% decline in Distribution Exit Routes
distribution from that
20.7% for 2017 due to falls (US$ bn)
Pace 2018
60 55.2 Others
of distributions from 3%
50 Secondary
both China and Japan 43.8 10.7%
Trade Sale
40 55.4%
Trade Sale Trade Sale overtakes 30 US$43.8 bn

Public Market as the 20
Public
55.4% principal exit route,
Market
30.9%
10
accounting for 55.4%
of 2018 distribution 0
2017 2018
Trends in 2018
Funds : US$104.5 bn, the 1st time crossing the US$100 bn mark
Investments : US$166.4 bn, an increase of 26.9%, the amount is a record high
Distribution : US$43.8 bn, a decline of 20.7%
compared to the same period in 2017

Snapshot: 2018 Data
Snapshot: 2018 Data

FundsUS$104.5 bn
AsiA PrivAte equity review
Overview – AsiA Fund POOl
Overview
Fresh Capital Asia: Private Equity Fund Pool
(2014 – 2018)
US$104.5 bn
Overview
(US$ bn) (No.)
18.8%  120
370 366 104.5
400
100 330 87.9

82.8 292 300
80
Average Fund Size 61
66.3 247
60 200
US$422.9 m
• For the first time, fresh capital raised in a 12-month period has passed the
40
100
40.4%  20
0 0
US$100 bn mark, at US$104.5 bn

2014 2015 2016 2017 2018
Private Equity Fund Pool No. of Funds
Fig. 12 Source: AsiA pRivAte equity Review
Asia: The Changing Fund Mandate

(2014 – 2018)
(%)
• Fund size has reached a new record, with the US$10.6 bn Hillhouse Fund IV
LP being the largest. The fund also exhibits international investors’ absolute
100 7.5% 8.5% 6.7%
12.1% 13.1% 4.4% 5.4% 5.2%
5.7% 1.2% 0.1% 0.5%
80 0.2% 7.3%
15.6% 14.5%
23.5% 16.9% 26.8%
11.1%
60
confidence of China-based fund managers

12% 19.4% 40%
23.3%
40 39.4%
26.9% 18.4%
23.6% 11.7%
20
19.6% 24.9% 20.8% 21.4%
• 18 billion-dollar funds, a record number. Together, they represent US$52 bn in

12.3%
0
2014 2015 2016 2017 2018
Seed/Early Growth/Expansion Generalist Buyout

Secondary Private Debt Real Assets(1)
fund pool
(1)
Real Assets: include those funds that focus only on (i) Infrastructure (ii) Logistics
(iii) Forestry; Real Estate funds are excluded
Billion-dollar Funds
Billion-dollar Funds Closed Asia: Billion-dollar Funds Closed – 3 Largest
Fund Segment
( 2018)
18
Fund Management Fund
Fund Name Market
Firm Size
Hillhouse Capital
Hillhouse Fund IV LP 10.6 China
Management Ltd
• Generalist Funds, those that target companies at various stages of

The Carlyle Group Carlyle Asia Partners V LP 6.55 Pan-Asia
PAG Asia Capital Ltd PAG Asia III LP 6 Pan-Asia
All amounts in US$ bn
development, dominate and account for 40% or US$41.8 bn of the 2018 fund
2018 Year End Data Issue
14
pool, suggesting that investors have adopted a more opportunistic investment
approach
• Funds for Buyout and Growth/Expansion situations, at US$15.2 bn and
US$12.2 bn respectively, represent substantial declines from those raised
during 2017
Theme Fund
• Digitisation of the economy is shaping sector-specific funds being raised.
Those that focus on IT & Telecom and Logistics are most-favoured, chalking
US$18.2 bn in aggregate
Debt Fund
• Debt Funds are in vogue, at US$5.4 bn. India, for the first time, records a
private debt fund that passes the billion dollar mark, the US$1.3 bn EISAF
II by the alternative investment arm of Edelweiss Group. The outstanding
fund raising record of this fund highlights the fund raising prowess of India’s
domestic managers
Cross Border Fund

• Those funds that focus on opportunities of certain markets in Asia and the
West, balloon to US$12.3 bn, whereas it was US$4.2 bn in 2017. Sequoia
Capital China has raised US$6 bn for its US$8 bn fund that targets assets in
China, India and the US. It is the largest Cross-Border fund
Market
• China leads in raising US$44.9 bn or 43.3% of the total amount, shored up by
the US$10.6 bn Hillhouse IV alone accounts for 22.9% of this market’s fund
pool; while the US$7.2 bn for India ranks 2nd
The above is an extract from the Asia Private Equity Review’s 2018 Year End Data Issue released in January 2019

Snapshot: 2018 Data
Snapshot: 2018 Data

InvestmentsUS$166.4 bn
Market Overview – asia investMents
Markets
Asia: Investment - by Markets
( 2018)
Overview
2018 2017
Transaction No. of Transaction No. of
South Korea
US$12.3 bn
Volume Deals Volume Deals
Japan
China
US$66.7 bn
US$23.6 bn
Australia/
1 st China
40.1% New Zealand
8.8 78 15.5 105
India
• US$166.4 bn in transaction sum, a new record and is a 26.9% increase from

30.2%
US$13.3 bn China 66.7 468 66.7 664
US$166.4 bn
India 13.3 331 9 295
Southeast Asia
US$25.8 bn
Japan
14.2% 3rd Japan 23.6 321 10.6 313
that for 2017

Other Asia Markets
2nd 15.5%
Southeast Asia
South Korea 12.3 100 10.1 88
US$0.5 bn
Southeast Asia 25.8 194 7.7 173
Rest of the World Other Asia
0.5 14 0.9 11
US$15.3 bn
Markets
Australia/New Zealand
US$8.8 bn
Rest of
the World
Total
15.3
166.4
142
1,648
10.7
131.2
120
1,769
• Record number of deals that breaches the US$11 bn mark that underscores
investors are not hesitant to commit to outsized deals. Significantly, these 3
All amounts in US$ bn except for the number of deals
China Southeast Asia Japan

Leads 2nd 3rd
Fig. 33
US$66.7 bn US$25.8 bn US$23.6 bn
Source: AsiA pRivAte equity Review
mega deals are assets located in either developed and developing economies,
Asia: Investment - Rest of the World
( 2018) indicating multi-billion deals are no longer exclusively in Asia’s developed
economies -
2018 2017
Europe
US$8.5 bn
Transaction No. of Transaction No. of
North America UK
Volume Deals Volume Deals
US$6.4 bn US$0.2 bn
Europe 8.5 27 1.4 17
▫▫ US$18.3 bn buyout of Japan’s Toshiba Memory Corp by a consortium led

North
6.4 91 5.3 71
Others America
US$0.2 bn
UK
1.6% 3rd 1.3%
UK 0.2 9 0.7 12
by Bain Capital is the largest on record

Others 0.2 15 3.2 20
North America
41.8% 2nd
1st Europe
US$15.3 bn
55.3% Total 15.3 142 10.7 120
All amounts in US$ bn except for the number of deals
NB:
▫▫ US$14 bn raised by China’s leading online payment operator, Ant Financial

• Europe, North America and UK are included due to outbound
investments by Asia-based investors
• Europe includes Austria, Belgium, Finland, France, Germany, Greece,
Hungary, Iceland, Ireland, Italy, Latvia, Netherlands, Norway, Slovenia,
Spain, Sweden, Switzerland and Turkey
Europe North America UK

Leads
US$8.5 bn
2nd
US$6.4 bn US$0.2 bn
3rd
Services Group, is the 2nd largest
▫▫ US$11.6 bn privatisation of the Singapore-based GLP Pte Ltd ranks 3rd

28
Deal Segment
• These 3 mega deals have also helped propel both Buyout and Growth/
Expansion as the two segments that attract an aggregate US$139.6 bn or 84%
of the transaction total -
▫▫ Growth /Expansion leads in recording US$76.3 bn, skewed by the US$14
bn investment in Ant Financial
▫▫ Buyout records US$63.3 bn, shored up by the US$18.3 buyout of Toshiba
Memory Corp
Deal Size & Preferred Deal Range

• Average deal size increased by 35.8% to US$105.1 m, but if the 3 mega deals
are excluded, the average deal size would be US$77.5 m
• Deals in the range between US$100.1 m and US$250 m records increase,
suggesting investors are favouring and also have the necessary capital to focus
on mid-market deals
Market
• China continues to lead in attracting US$66.7 bn but Japan and Southeast
Asia are closing the gap in recording elating increase of transaction sum
during 2018, at US$23.6 bn and US$25.8 bn, respectively. For both Japan and
Southeast Asia, these are record transaction sums
Tech
• Impact of the digital economy continues to prevail. Investment in technology-
enabled companies, those in various stages of development, jumps by 44.2%
to US$66.2 bn during 2018, shored up by the US$14 bn investment in Ant
Financial, which in turns propels FinTech as the most-favoured sector in Tech

Snapshot: 2018 Data
Snapshot: 2018 Data

DivestmentsUS$43.8 bn
Market Overview – asia DivestMents
Industry
Consumer Goods Asia: Distribution – by Industry
(2017 & 2018)
US$11.7 bn
Overview
% of Total
26.7% Consumer 11.7 26.7%
Goods 7 12.7%
IT & Telecom 8.1 18.5%

IT & Telecom
8.2 14.9%
US$8.1 bn
18.5% Healthcare
0
4.1
5
4.7
10
(US$ bn)
15
10.7%
7.4%
• US$43.8 bn is a 20.7% fall compared with the US$55.2 bn in 2017
Healthcare
• Impact of the trade war between the world’s two largest economies on
2018 2017
US$4.7 bn
2018 2017
10.7%
investors’ ability to realise their assets became painfully evident by the last
Rounds of Rounds of
Distribution Distribution
Exit Exit
Consumer
11.7 97 7 95
Goods
quarter of the year. In these 3 months, capital return trickled to US$4.8 bn,
IT & Telecom 8.1 184 8.2 126
Healthcare 4.7 95 4.1 87
Infrastructure 3.8 34 6 60
accounting for 11% of the distribution total for the year

Media 3.5 53 4.2 42
Services 2.8 100 9.3 98
Banking &
2.6 64 4.5 108
• Tech plays a central role in shoring up the 2018 distribution. Of the US$43.8
Finance
Food & Beverage 2.4 19 5.5 44
Construction 2.2 17 2.4 24
bn, two outsized divestitures, the US$8.3 bn returned to exiting investors in

Industrial
Manufacturing 1.6 95 3.9 72
Goods
Energy/Natural
0.4 4 0.1 4
India’s Flipkart Pte Ltd (‘Flipkart’) and the US$1.6 bn returned to an investor
Resources
Total 43.8 762 55.2 760
All amounts in US$ bn except for the rounds of exit
group at the IPO of China’s Xiaomi Corp add up to US$9.9 bn or 22.6% of

Fig. 41 Source: AsiA pe inDex
the distribution total

• Despite a less congenial exit environment, the 2018 performance results for
37 deals that achieved liquidity events or realisations have improved –
2018 2017
MOC 2.4x 2.3x
IRR 36.1% 26.8%
Sample 762 760
NB:
• All results are on gross basis
• Sample denotes rounds of exit which also means
number of investment positions
Segment
• Growth/Expansion and Buyout record virtually the same distribution, at
US$20.9 bn and US$19.5 bn, respectively, with Seed/Early taking the smallest
divestment pie, at US$3.4 bn
Exit Mechanisms & Industry

• The sale of Flipkart to Walmart Inc has significantly changed the 2018
distribution terrain -
▫▫ Trade Sale overshadows Public Market in accounting for US$24.3 bn, or
55.5% of the distribution; leaving Public Market to record US$13.5 bn
▫▫ Consumer Goods which includes e-commerce platforms leads in chalking
up US$11.7 bn
Market
• India, for the first time, has taken the crown as the market that chalks up the
largest sum of distribution, at US$14.9 bn, thanks to the US$8.3 bn in the sale
of Flipkart
• China’s US$8.7 bn is the lowest sum returned during a 12-month period for
this market since 2009. Yet with the exit rounds having doubled during 2018, a
development that affirms the observation that companies have been rushing to
access liquidity
3 Largest Distributions
• Multi-billion dollar distributions are now the norm in Asia’s private equity
asset class. In particular, these records are no longer concentrated in one single
market. During 2018, India, Japan and China, each records multi-billion dollar
distributions, with the US$8.3 bn from Flipkart being the largest

News
Institutional Investors Ride-Hailing Sector Undergoes Wave of

Rationalisation
Korea Post to Invest More in Infrastructure The ride-hailing sector is undergoing a wave of
Korea Post Savings, a subsidiary of Korea Post, rationalisation, with two industry leaders, namely China-based
has earmarked up to US$200 million for two blind-pool Didi Chuxing Technology Co Ltd (‘Didi’) and US-based Uber
infrastructure funds that focus on developed countries, Technologies Inc (‘Uber’), stepping up their efforts to cope
according to Korean Investors. The institution is seeking those with their substantial business losses.
who have closed an infrastructure fund at or above US$1 China’s largest ride-hailing giant, which counts SoftBank
billion, and have at least US$10 billion of infrastructure Group Corp and United Arab Emirates’s Mubadala
assets under management. The selection will be finalised in Investment Co as among its list of investors, had reportedly
April this year. suffered a loss of Rmb10.9 billion (US$1.6 billion) in 2018.
Another unit of Korea Post, Korea Post Insurance, is The figure is a more than threefold rise from the Rmb2.5
also in the selection process to commit US$300 million to billion loss in 2017. The huge loss was attributed to heavy
two or three global infrastructure fund managers with focus subsidies offered to drivers, which were over Rmb11.3 billion,
on advanced markets. (Global) according to market estimates. To address the problem of
widening loss, Didi is said to have unveiled its plan to lay off
Australia/New Zealand around 2,000 employees, or 15% of its total workforce. It
is to focus on areas involving safety technologies, product
Canberra to Advance Agriculture and driver management, as well as international expansion.
Grain Research & Development Corp (‘GRDC’), In the US, Uber is also facing a similar fate. According to
a statutory corporation founded to develop the Australian various market reports, the company posted US$1.8 billion
grain industry, has partnered with Artesian Venture Partner in losses last year, but this is a modest improvement when
(‘Artesian’) to establish the A$50 million GrainInnovate compared to the US$2.2 billion loss for 2017. To boost
Fund. The fund will invest in early-stage companies in the its revenue growth, Uber has been actively diversifying its
Australian grain industry, including genetic technologies, crop businesses, spanning across ride-hailing, bike-sharing and
management and grain logistics. food delivery. Among its latest moves are the reduction
Each of Artesian and GRDC has committed A$25 million of food delivery fees charged by Uber Eats, the food
to this initiative. (Australia) delivery arm of Uber; and the rollout of a marketplace in
the UK, Ireland and Netherlands as part of Uber Eats’s
Greater China global expansion.
A decade since the new economy business model sector
KKR’s SinoCare Bolsters its Greater China began to disrupt traditional business practices, signs of
Healthcare Assets rationalisation are the norm. Most recently, the US-based
SinoCare Group (‘SinoCare’), a hospital management Razer Inc (‘Razer’), a gaming hardware maker that is currently
and investment platform launched by KKR & Co (‘KKR’) listed on the Stock Exchange of Hong Kong, has announced
in 2018, is boosting its healthcare assets in the Greater its decision to cease operations of its Razer Game Store by
China area. According to domestic press reports in Taiwan, the end of February. As part of its realignment plans, Razer
SinoCare helped faciliate the merger of Taiwan-listed is also known to be reducing around 2% of its total number
ShareHope Medicine Co Ltd (‘ShareHope’) and privately- of employees. It counts Heliconia Capital Management,
held Min-Sheng General Hospital (‘Min-Sheng’). Min-Sheng Horizons Ventures and IDG Capital as its investors.
is a hospital chain operator, while ShareHope is its affiliate (People’s Republic of China)(USA)
and offers integrated medical services.
Following completion of this merger which is expected Increased Awareness of Responsible Investment
to complete within the next 24 months, SinoCare will acquire in China Fund Management
the merged entity. The acquisition is part of SinoCare’s plan Responsible investment, environmental, social and
to prepare for its initial public offering in 2021. governance (‘ESG’), is making encouraging inroads into
Funded by KKR Asian Fund III LP, SinoCare seeks China’s fund management industry. According to the
to deliver high-quality healthcare services through the Principles for Responsible Investment (‘PRI’), which is
acquisition, build-out and consolidation of hospitals. It has supported by the United Nations in its signatory directory
already made its first investment by taking a majority stake in as of 31st December 2018, there has been a notable increase
HeTian Hospital Management Co (‘HeTian’) for reportedly of China-based investors subscribing to the guidelines, more
US$170 million. Currently, HeTian operates seven hospitals than doubled to 18, compared to seven in the preceding
and healthcare centres in China. The capital injection would year. Among them are China Life Asset Management Co
accelerate HeTian’s expansion in the third- and fourth-tier Ltd, China Southern Asset Management and Harvest Fund
cities across the country. (Taiwan) Management Co Ltd.

News
As far back as 2012, Lunar Capital Management and RYB to Grow with a New Name
JD Capital were among those from China that have joined RYB Education Inc (‘RYB’), one of the leading
PRI, while Jade Invest signed up in 2017. childhood education service providers in China, announced
Currently, signatories from China remain a small the change of its name to GEH Education (‘GEH’). In 2018,
percentage, around 5.7%, of the overall number. While GEH was embroiled in scandals for providing undesirable
names of China’s major institutional investors such as education services to kindergarten children.
China Investment Corp or National Council for Social GEH was listed on the New York Stock Exchange. Its
Security Fund are absent, market reports suggested that investor, Ascendent Capital Partners, had largely disposed
they are also building their internal ESG investment systems. of its interest prior to the scandal coming to light.
(People’s Republic of China) (People’s Republic of China)
Xiaomi & Meituan to Join MSCI Equity Indexes Mobike Rebranded as Meituan Bike
Xiaomi Corp (‘Xiaomi’) and Meituan Dianping Beijing Mobike Technology Co Ltd (‘Mobike’), one of
(‘Meituan’) are among a list of dual class shares companies the two largest bike-sharing startups in China, and acquired by
currently quoted on the Stock Exchange of Hong Kong that Meituan-Dianping (‘Meituan’) in 2018, has rebranded itself as
will be added to the MSCI Emerging Markets Index and the Meituan Bike and merged its operations into Meituan’s app.
MSCI China All Shares Index. This will come into effect by The rebranding of Mobike comes at a time when China’s
the end of February. bike-sharing industry is undergoing sweeping consolidation.
Xiaomi is the world’s fourth-largest smartphone ofo Inc, the number one player, is facing a severe cash flow
company by shipments, and Meituan traces its roots as a crunch as it has not been able to meet payments owed to
culinary food review platform which has since expanded to service suppliers while former users are asking for refunds
other sectors, including a group buying platform. Both are for their deposits. Bluegogo, the country’s 3rd largest bike-
backed by a long list of private equity investors including sharing operator, has also ceased operations.
Matrix Partners China, Qiming Venture Partners and (People’s Republic of China)
Sequoia Capital China, among others.
In addition to Xiaomi and Meituan, Bilibili Inc, Blackstone Completes Subscription of CBs in
a leading animation streaming platform, Pinduoduo Pharmaceutical Co
Inc, an e-commerce operator, and Tencent Music The Blackstone Group (‘Blackstone’) has completed
Entertainment Group, a music-streaming company, have the subscription of convertible bonds of Hong Kong-
also been included in the MSCI China All Shares Index. listed YiChang HEC ChangJiang Pharmaceutical Co Ltd
(People’s Republic of China) (‘YiChang’) for US$400 million. Assuming full conversion,
Blackstone will take a 15.5% stake in the target company
BitMain Makes Mass Layoffs Amid based on the conversion price of the bonds which is subject
Sluggish Sales to adjustments.
Beijing-based BitMain Technologies Holding Co Founded in 2001, YiChang is a pharmaceutical company
(‘BitMain’), which counts IDG Capital, Sequoia Capital covering antivirus, endocrine, metabolic and cardiovascular
China and Temasek Holdings (Pte) Ltd as its investors, diseases.(People’s Republic of China)
has reduced its workforce to around 1,000 employees, from
over 3,000 prior to the layoffs, according to the domestic
press jiemian.com, citing a former employee as the source. The
mass layoffs were attributed to sluggish sales of BitMain’s
mining machines amid a substantial fall in Bitcoin’s price
last year.
Earlier, BitMain had filed an initial public offering at the
Stock Exchange of Hong Kong. It was seeking to raise no
less than US$500 million in its public float.
On the heels of BitMain’s layoff move, Coinsuper.
com, a cryptocurrency exchange based in Hong Kong, is
steering its business to institutional investors to meet new
regulatory requirements proposed by the Securities and
Futures Commission, the local regulator, in November
last year. Among them is the provision of trading services
to “professional investors” only, which include individual
investors and corporations with a portfolio of at least
HK$8 million (US$1 million) or total assets of at least
HK$40 million.
(People’s Republic of China)(Hong Kong)

News
India IDFC Disposes of More Alternative Assets

IDFC Alternatives Ltd (‘IDFC Alternatives’), the
India Tightens Controls Over Social Media & alternative asset management arm of IDFC Ltd, has
E-Commerce further wound down its business. It successfully sold its
India’s Minister of Electronics and Information private equity and real estate businesses to the Bahrain-
Technology is proposing a regulation that would tighten based Investcorp, also an alternative investment manager.
control over foreign social media apps providers that have Currently, IDFC Alternatives is managing four active funds
signed up more than 5 million users, according to Financial with combined assets of around US$430 million, with 20
Times. Such foreign operators must set up an office in India investment professionals.
with a senior executive who is accountable for legal issues. The deal secured the nod from the Securities and
The move is seen to target one of the most popular Chinese Exchange Board of India, but no transaction sum
social media apps in India, TikTok, which is operated by was disclosed.
Beijing Bytedance Technology Co Ltd. The sales of IDFC Alternatives’ private equity and real
The proposed regulation on the social media sector estate assets come only half a year after it disposed of its
comes on the heels of India’s launch of a new e-commerce infrastructure assets to Global Infrastructure Partners.
law, which took effect on 1st February, to protect domestic IDFC Ltd is focusing on the banking business. In July
small players from both domestic and foreign behemoths. 2015, it obtained the universal banking licence that allows it
According to the press note from Department of Industrial to provide financing to small and medium enterprises.
Policy and Promotion, retailers or vendors which secured
‘equity participation’ from the e-commerce marketplace
Japan/South Korea
backed by foreign direct investment will not be permitted
to sell on the respective e-commerce platform. Japan’s Investors Power New Auto Industry
In response, Catamaran Advisors LLP (‘Catamaran’), with Capital
the family office of Mr Narayana Murthy, co-founder of Japan’s institutional and corporate investors have
Infosys Ltd, lifted its stake in Prione Business Services Pvt been accelerating their efforts to expand their footprints
Ltd (‘Prione’) to 76%, according to various market reports globally, with particular focus on autonomous driving and
in India. electric vehicles.
Prione is the parent company of Cloudtail India Pvt Ltd, INCJ Ltd and Mitsubishi Electric Corp (‘Mitsubishi
a leading seller on Amazon.com Inc’s (‘Amazon’) e-commerce Electric’), both existing investors of Japan-based Dynamic
platform in India. In tandem with Catamaran’s increased Map Platform Co Ltd (‘DMP’), are among those that pledged
equity stake in Prione, Amazon has reduced its holding to up to ¥22 billion (US$198.6 million) to the provider of high
24%, from 49%. definition 3D maps for autonomous driving. The new capital
will be used to finance DMP’s acquisition of its US peer, Ushr
OYO Provides Rooms to Car-Hailing Operators Inc, as well as DMP’s North American operations.
from China & SE Asia In addition to funding DMP’s overseas acquisition,
OYO, India’s leading budget hotel aggregator, which Mitsubishi Electric’s parent company, Mitsubishi Corp
counts SoftBank Group Corp and Sequoia Capital India (‘Mitsubishi’), also recently acquired a 20% stake in the UK-
as its investors, is believed to have raised US$100 million based clean energy supplier OVO Energy Ltd (‘OVO’) for
from Didi Chuxing Technology Co Ltd (‘Didi’) and the same an undisclosed amount.
amount from Grab Holdings Inc (‘Grab’), Southeast Asia’s The strategic investment from Mitsubishi will not only
largest car-hailing operator. help OVO expand into new markets across Europe and Asia
OYO made known of its plan to raise US$1 billion Pacific, but also advance its development of a new intelligent
back in September 2018. SoftBank Investment Advisers, energy technologies unit, Kaluza. This new division is
Lightspeed Venture Partners and Sequoia Capital dedicated to developing and managing software and hardware
India and others were known to have injected an aggregate to facilitate the integration of electric vehicles and dynamic
US$800 million; with the remaining coming from both Didi battery storage onto the grid. (Japan)(UK)
and Grab. At the conclusion of this fundraising round, OYO
is being valued at around US$5 billion.

News
Ssangyong Cement’s Mixer to Get Fresh Southeast Asia

Financing Capital
Ssangyong Cement Industry Co Ltd (‘Ssangyong Grab Secures its Ride in Thailand
Cement’), which is currently listed on Korea Exchange and Grab Holdings Inc (‘Grab’), Southeast Asia’s largest
majority controlled by Hahn & Co (‘Hahn’), could have car-hailing operator, has entered the Thai market through
its loan refinanced, according to domestic reports. Hahn, raising funds from one of the leading retail conglomerates
which holds its interest in the cement maker through Hahn in Thailand.
& Co Cement Holdings Ltd (‘HoldCo’), is to obtain a 1.4 Central Group of Company (‘Central Group’) announced
trillion won (US$1.2 billion) debt financing package to having earmarked US$200 million for a stake in Grab
refinance its capital committed to Ssangyong Cement. The Thailand, a local unit of Grab.
proceeds would be used towards repaying existing loans but As part of the agreement, Central Group and Grab aim
does not exclude the option of making a distribution to to revolutionise the retail and service industry in Thailand
Hahn’s investors. through their collaboration across a variety of areas
Between 2012 and 2017, Hahn, through various vehicles, including food & grocery delivery, logistics, and transport.
was estimated to have committed 1.6 trillion won (US$1.4 (Thailand)
billion at the then exchange rate) for a 77.4% stake in
Ssangyong Cement. HoldCo will be the vehicle used to secure Nojima Firm on its Offer for Courts Asia
the new financing package. (South Korea) Japan’s Nojima Corp (‘Nojima’), which had earlier
proposed to acquire all issued and outstanding shares of
KTB & KDB to Disrobe Hwaseung’s Sportswear Singapore-listed Courts Asia Ltd (‘CAL’), has indicated that it
KTB Private Equity (‘KTB PE’) and Korea does not intend to revise its cash offer. Nojima’s offer valued
Development Bank (‘KDB’) are to exit from Hwaseung CAL at S$106.1 million (US$77.9 million).
Corp (‘Hwaseung’). According to various domestic reports, CAL is a leading electrical, IT and furniture retailer in
South Korea’s first shoe company entered into court Singapore. Upon completion of this transaction, Baring
receivership in early February. Private Equity Asia, which holds a 49.6% indirect stake in
Hwaseung was established in 1953 and had been a leading CAL, is expected to conclude its decade-long investment in
sports fashion group in South Korea. It owns the distribution the company and receive S$52.6 million. (Singapore)
rights of foreign brands such as K-Swiss and Merrel, in
addition to Hwaseung’s in-house brand Lecaf. Hwaseung fell
victim to the 1997-1998 Asian Financial Crisis but managed
to exit from special court protection in 2005.
Back in 2015, KTB PE partnered with KDB to form a
246.3 billion won (US$209 million at the then exchange rate)
project fund to invest in Hwaseung. (South Korea)

Australia/New Zealand – Funds/Investments/Divestments
Funds Enterprise Angels (‘EA’) has Brookfield Asset Management

launched EA Fund 3 LP, which has a (‘Brookfield’) has entered into an
Q u a d r a n t P r iva t e E q u i t y target size of between NZ$2 million agreement to take over Australia-listed
(‘Quadrant’) is believed to have and NZ$6 million (US$1.3 million and Healthscope Ltd, valuing the latter’s
advanced the idea of launching a US$4 million). equity at as much as A$4.4 billion
growth fund to investors, according EA is a membership-based (US$3.1 billion). A consortium led by
to The Australian Financial Review. investment network founded in 2008. It BGH Capital had earlier proposed a
The fund would have a target size of predominantly invests in startups across separate offer valuing the company’s
A$300 million (US$214.3 million). a range of sectors, including agricultural equity at A$4.1 billion, 5.9% lower than
When materialised, this will broaden technology and biotechnology, in New that being offered by Brookfield.
the products offered by Quadrant Zealand.(New Zealand) In August 2018, Healthscope Ltd
which has been an active mid-market sold its Asian Pathology unit to TPG
buyout firm in Australia and New for A$279 million. (Australia)
Zealand since established in 1996. Investments
Quadrant closed its latest fund
Quadrant Private Equity No. 6, at New Zealand-based Direct Capital Full Circle Venture Capital,
A$1.2 billion, in 2017. It counts has pledged an undisclosed sum to Rampersand and Impact Investment
Darrell Lea Confectionery Co Pty a local engineering and management Group, all existing investors of Australia-
Ltd, a well known confectionery consultancy firm Beca Group (‘Beca’). based Sendle, have participated in the
brand in Australia, among its portfolio The latter offers consultancy services latter’s A$20 million (US$14.4 million)
companies.(Australia) across a broad spectrum of sectors series B financing round. Federation
including building, water and transport. Asset Management is the lead investor
The investment in Beca came in this transaction.
Equity Venture Partners (‘EVP’) within days after Direct Capital has Sendle is a parcel delivery firm that
has closed its EVP Fund II (‘Fund joined others to acquire a minority stake is to expand into overseas markets.
II’), at A$35 million (US$24.8 million). in Qestral Corp Ltd, a local operator (Australia)
The fund enlists SiteMinder, an online of premium retirement villages, for an
distribution of hotel room inventory, undisclosed amount. (New Zealand)
and Deputy, the global workforce Divestments
management platform as among its
long list of portfolios. Singapore-based Qualgro Anacacia Capital (‘Anacacia’)
Fund II has been subscribed by Partners Pte Ltd has partnered with has sold its majority stake in RISsafety
existing investors from the previous the Australia-based Reinventure Pty Ltd to Bricktop Group for an
fund, family offices and high net Group Pty Ltd (‘Reinventure’) and co- undisclosed amount. This concludes
worth individuals. It will seek series led in the A$1.5 million (US$1.1 million) Anacacia’s seven-year investment in the
A opportunities among software seed funding round of Australia-based manufacturer of products for height
companies located in Australia. Curious Thing Pty Ltd. The latter is a safety and access needs. (Australia)
(Australia) recruitment startup that leverages on AI
technology to deliver hiring solutions.
Reinventure is the venture capital KKR & Co (‘KKR’) is reportedly
Roc Partners is reportedly to unit of Australia’s Westpac Banking seeking to exit from Sundrop Farms Pty
have partnered with Crestone Wealth Corp.(Australia) Ltd (‘Sundrop’) which operates a huge
Management, a financial services firm solar-powered greenhouse for planting
for high-net-worth individuals (‘HNIs’), fruits and vegetables. It is understood
to set up a new fund, according to that a New Zealand private equity firm
The Australian Financial Review. The is interested to acquire the said assets.
fund, seen as a demand for private When this is eventuated, KKR
equity assets by HNIs, is believed to would have concluded its investment in
have a target size of A$150 million Sundrop in which it is believed to have
(US$106.7 million) and has already invested US$100 million in late 2014.
garnered A$65 million. Roc Partners (Australia)
will be the manager of this co-mingled
fund.(Australia)

Greater China – Investment: Healthcare
The Price of
Health
Price paid by investors in the privatisation of iKang underlines premium
accorded to China’s healthcare assets
Reprint of article published in the

13th Feb, 2019 Subscribers’ Weekly
Key Points
●●Privatisation of iKang reveals one of the most contested healthcare assets
T hey are the world’s two most
populated nations, each with
no less than 1.3 billion people
as of 2018. They are China and India.
But investors’ appraisals of assets
in China –
◦◦ Over a period of 3 years and 5 months, iKang received 6 proposals in these two markets are vastly different.
◦◦ Meinian Consortium was prepared to place iKang’s value at US$1.8 bn in The recent privatisation financing of
its 3rd offer, but could not clinch the deal iKang Healthcare Group, Inc. (愛康健
◦◦ Yunfeng’s 2nd attempt succeeded by including a marquee list of investors, 康醫療集團股份有限公司) (‘iKang’), a
including Alibaba and Boyu leading healthcare services provider in
China, is a poignant example.
●●Healthcare assets in China command premiums –
◦◦ Yunfeng Consortium’s deal price for iKang represents a P/E ratio of 83.6x;
whereas that for India’s Dr Lal, a similar business as iKang, is 42x

Marathon Courtship During this period, the interest in Meinian Onehealth Healthcare (Group)
to Go Private iKang was overwhelming. Out of six Co Ltd (美年大健康產業控股有限公
iK ang owns and operates privatisation proposals iKang received, 司) and Ping An Insurance (Group)
119 medical examination centres Yunfeng Capital ( 雲鋒基金) only Company of China ( 中國平安保險
in China, covering 35 of China’s succeeded to clinch the deal in its second (集團) 股份有限公司), among others
most affluent cities including Beijing, attempt, when in March 2018 it boosted (‘Meinian Consortium’), had in fact
Shanghai, Guangzhou and Shenzhen. its war chest by co-opting a marquee made three attempts, but in vain.
On 18th January, iKang announced list of investors. It brought in Alibaba
its plan to be delisted, concluding its Group Holding Ltd (阿里巴巴集團控 Value in the Eyes of Suitors
journey as a public company on The 股有限公司) and subsequently added In the course of this lengthy pursuit
Nasdaq Stock Market that began in Boyu Capital Advisory Co Ltd (博裕 of iKang, the Meinian Consortium was
2014. iKang’s return to private status 資本) and Suning International Group prepared to value each of iKang’s
closes one of the longest privatisation Co Ltd (蘇寧國際集團股份有限公司), American Depositary Receipts (‘ADR’)
courtships undertaken by private equity (collectively “Yunfeng Consortium’). at US$25, propelling the target
investors, which spanned from August Another investor group, which company’s market capitalisation to
2015 to January 2019, a total of three included Sequoia Capital China, US$1.8 billion and its price-to-earnings
years and five months. Cathay Capital Private Equity, (‘P/E’) ratio to a hefty 55.1 times
“Go Private” Values (Aug 2015 – Mar 2018)
Proposal Valuation(2)
Proposed Market Equity
Received Investor(s) P/E EV/ Debt/
Price/ADS Cap(1) Value(2)
Date Ratio EBITDA EBITDA
31st Aug 2015 FountainVest Partners, Zhang Li Gang

17.8 1,134.2 1,256.3 35.1 16.4 0.6
(1st Round) (Founder of iKang)
Cathay Capital Private Equity, Huatai

Ruilian Fund Management, Meinian
29th Nov 2015 Onehealth Healthcare (Group) Co Ltd,
22 1,181.7 1,550.2 48.5 21.5 0.6
(2nd Round) Ping An Insurance (Group) Company of
China, Sequoia Capital China, Taiping
Asset Management Co Ltd

15th Dec 2015 Onehealth Healthcare (Group) Co Ltd,
23.5 1,376.8 1,655.9 51.8 23 0.6
(3rd Round) Ping An Insurance (Group) Company of
China, Sequoia Capital China, Taiping
Asset Management Co Ltd

Onehealth Healthcare (Group) Co Ltd,
6th Jan 2016 Ping An Insurance (Group) Company
25 1,522.7 1,761.6 55.1 24.5 0.6
(4th Round) of China, Sequoia Capital China,
GGV Capital, Sailing Capital, Haitong
Investment Co Ltd, Taiping Asset
Management Co Ltd
6th Jun 2016 20 1,404.4 40.9 21 3.4

Yunfeng Capital 1,483
(5th Round) 25 1,755.5 51.1 25.9 3.4
Alibaba Group Holding Ltd, Boyu Capital

26th Mar 2018
20.6 Advisory Co Ltd, Yunfeng Capital, 1,268.6 1,411.1 83.6 17.2 2
(6th Round)
Suning International Group Co Ltd
NB:
• private equity investors are in bold
• Market cap and equity value in US$ m, proposed privatisation price per ADS in US$
(1)
based on closing share price prior to the announcement of respective proposal
(2)
based on proposal price and trailing twelve months financials

iKang’s preceding 12 months’ earnings

Valuation of China’s iKang & India’s Dr Lal (Mar 2018)
ending September 2015. This was back
in January 2016. iKang Dr Lal
The Yunfeng Consortium’s March Headquarter China India
2018 offer price, at US$20.6 per
Listing Bourse(s) NASDAQ BSE, NSE
ADR, placed iKang’s equity value
at US$1.4 billion, a 22.2% discount Principal Market China India
to the US$1.8 billion valued by the Key Financials
Meinian Consortium. Yet as iKang’s (for 12 months ending) Dec 2017 Mar 2018
earnings in the 12 months ending
December 2017 had by then fallen, the Revenue 534.6 166.8
P/E ratio committed by the Yunfeng Gross Profit 225.6 132.2
Consortium, at 83.6 times, sheds light EBITDA 89.2 45.3
on this pool of investors’ confidence
Net Interest Cost 19 0.1
that iKang is a prized asset and its
earnings will improve. Net Profit Attributable
16.9 26.2
H o w e v e r, t h e v a l u e o f a to Shareholders
similar business as iKang in India, Consortium’s
Market Value(1) Market Value(1)
Dr Lal PathLabs Ltd (‘Dr Lal’), is Offer
substantially lower. Equity Value 1,411.1 1,268.6 1,099.1
Dr Lal provides diagnostic Debt 179.2 179.2 5.3
healthcare tests at its nearly 200
laboratories in India. At the time the Cash and Equivalent 77.7 77.7 10.1
Yunfeng Consortium tabled their last Enterprise Value 1,537.7 1,395.2 1,094.9
offer to iKang, Dr Lal’s market value Interest Coverage Ratio (2)
2.5 2.5 327.6
stood at around US$1.1 billion, close to
Debt/EBITDA 2 2 0.1
the US$1.4 billion offered by Yunfeng
Consortium for iKang (Fig. 11). P/E 83.6 75.2 42
Despite the fact that Dr Lal is EV/EBITDA 17.2 15.6 24.2
a debt-free company and boasts an All amounts in US$ m except for percentages Consortium = A
libaba Group Holding Ltd, Boyu
impressive Interest Coverage Ratio of and ratios Capital Advisory Co Ltd,
(1)
as of the last trading date, being 26th Mar 2018, Yunfeng Capital, Suning
327.6 times, towering over the 2.5 times before the consortium announces International Group Co Ltd
for iKang, the P/E ratio of Dr Lal’s (2)

the proposed acquisition of iKang
EBIT
Dr Lal
iKang
= Dr Lal PathLabs Ltd
= iKang Healthcare Group Inc
shares was half of that for iKang, at Interest Expense
42 times its 12 months earnings ending Fig. 12 Compiled by: Asia Private Equity Review
March 2018 (Fig. 12).
Comments Factsheet of China and India ( 2018)

China’s sizeable economy, at China India
US$13.5 trillion in 2018 according to GDP US$13.5 tn US$2.7 tn
the International Monetary Fund, and Population 1.4 bn 1.3 bn
its per capita gross domestic product
GDP Per Capita US$9,633.1 US$2,016.2
(‘GDP’), at nearly US$10,000 per
person, make it fundamentally more % of Population at 60-year old or above 16.6% 9.6%
attractive to investors than India,
where the economy stands at US$2.7 Healthcare Expenditure as % of GDP (2000 - 2015)
(%)
trillion and per capita GDP barely tops 6
US$2,000. China’s population is also

aging fast, with 16.6% of its 1.4 billion 5
people at the age of 60 and above.
The sheer size China’s market, along
with the government’s awareness of the 4
need to provide improved healthcare

services to its aging population, are 3
drivers for iKang to enjoy substantially 2000 2003 2006 2009 2012 2015
China India
higher valuations than its peer in India,
Dr Lal (Fig. 13). Fig. 13 Sources: International Monetary Fund, United Nations, World Health Organization
n

Greater China – Funds/Investments/Divestments
Funds Investments China Sports Capital (‘China

Sports’), jointly established by CMC
Gaocheng Capital, founded by DCM Ventures and GenBridge Capital Partners (‘CMC’) and Sequoia
Ms Jing Hong, a former partner in Capital, both existing investors of Capital China, has teamed up with the
Hillhouse Capital Management Beijing Lianchuang Juxing Catering UK-based City Football Group (‘CFG’)
(‘Hillhouse’), has garnered Management Co Ltd (‘Lianchuang’), and UBTECH to acquire Sichuan
US$100.3 million for its maiden US- have taken par t in the latter’s Jiuniu FC in the China League Two, in
dollar fund. US$50 million series C financing Chengdu, the Sichuan Province. The
At Hillhouse, Ms Hong was round. Tiger Global Management transaction size was not disclosed.
responsible for the firm’s investments LLC has led in this deal, joined by Formed in 2017, China Sports
in Didi Chuxing Technology Co Ltd Lighthouse Capital. focuses on investment opportunities
and Meituan Dianping, two of China’s Lianchuang operates Panda across the global sports industry.
leading players in the consumer services Selected, a leading shared kitchen CFG counts CMC as its minority
sector.(PRC) provider in China. It runs a service shareholder.(PRC)
platform that provides integrated
catering solutions for more than 800
Orient Hontai Capital (‘Hontai’), domestic catering brands. (PRC) Hillhouse Capital Management
the private equity arm of Orient and Sequoia Capital China have co-
Securities Co Ltd, is raising a led in the series D fundraising exercise
US$300 million venture capital fund. Hillhouse Capital Management undertaken by Lalamove which raised
In 2018, Hontai acquired a 53.5% (‘Hillhouse’), IDG Capital, MSA an aggregate US$300 million. The
stake in the Spain-based Imagina Media Capital (‘MSA’) and Sky9 Capital, deal has also secured commitments
Audiovisual SL. The latter specialises all existing investors of Beijing Zhouji from Eastern Bell Venture Capital,
in audiovisual content production and Technology Co Ltd (‘Zhouji’), have Shunwei Capital Partners, and Hong
distribution, primarily in Europe. It participated in the latter’s US$31 million Kong-based MindWorks Ventures.
is also a regular service provider for series B1 fundraising exercise. Hillhouse The latter two are existing investors
competitions such as the Champions and MSA are the co-lead investors in of Lalamove.
League and the Europa League.(PRC) this deal. Based in Hong Kong, Lalamove is
Zhouji operates Songshupinpin, an on-demand logistics company that
a community e-commerce platform provides same-day delivery services
ClearVue Partners (‘ClearVue’) for group buying. It posted over across China, India and Southeast Asia.
has set up its third fund, ClearVue Rmb100 million in sales revenue in It has garnered 28 million users and
Partners III LP, according to regulatory January.(PRC) 3 million drivers on its online platform.
filing lodged by the firm. The fund has (Hong Kong)
a target size of US$600 million which
is 65% larger than its predecessor fund Bain Capital Asia (‘Bain’),
that was closed at US$362 million through a newly-incorporated holding Morningside Venture Capital,
in 2017. company, has joined three individual HG Capital and Marathon Venture
Among ClearVue’s portfolio investors to acquire Xiamen Qinhuai Partners, all existing investors ofShukun
companies are the Hong Kong-listed Technology Co Ltd (‘Qinhuai’) from (Beijing) Network Technology Co
Ping An Healthcare and Technology Co the Shenzhen-listed Wangsu Science & Ltd (‘Shukun’), have participated
Ltd, a healthcare services platform; and Technology Co Ltd for Rmb 990 million in the latter’s Rmb200 million
the NASDAQ-listed Uxin Ltd, a used (US$146 million). Bain will indirectly (US$29.6 million) series B fundraising
car dealing platform. (PRC) own 80% of Qinhuai. exercise. The deal is led by China
Qinhuai r uns a portfolio of Creation Ventures.
data centres in China. It posted Shukun is a medical AI startup that
Rmb171.6 million in revenue in the develops AI-driven diagnostic systems
first half of 2018. (PRC) for treating cardiovascular and brain
diseases. It is to extend its diagnostic
coverage to tumors and nervous system
disorders.(PRC)

Greater China – Funds/Investments/Divestments
Sequoia Capital China A long list of investors CStone is a clinical-stage

and Lilly Asia Ventures have comprising Hillhouse Capital biopharmaceutical company
participated in the Rmb850 million Management, Yingke Innovation that focuses on developing and
(US$125.8 million) series C financing Asset Management Co Ltd and commercialising immuno-oncology
round of Burning Rock Dx (‘Burning BioTrack Capital have participated and molecularly targeted drugs.
Rock’). The transaction has also secured in the US$146.6 million fundraising (PRC)
commitments from LYFE Capital exercise undertaken by Shanghai HaiHe
and CMB International Capital Corp Pharmaceutical Co Ltd (‘HaiHe’). HG
Ltd, both existing investors of Burning Capital is the lead investor in this deal. Sequoia Capital China,
Rock. The deal was led by GIC Pte Ltd. HaiHe is a biopharmaceutical Lightspeed China Partners, Gaorong
Burning Rock develops diagnostics company that is dedicated to developing Capital and Advantech Capital are
solutions for precision medicine in anti-tumor drugs. (PRC) among the pool of investors that
oncology.(PRC) will be paring down their interests
in Pinduoduo Inc (‘Pinduoduo’).
Hillhouse Capital Management Listed on NASDAQ in July last year,
Boyu Capital (‘Boyu’), GIC Pte (‘Hillhouse’) and Tencent Holdings Ltd the e-commerce play, along with the
Ltd (‘GIC’) and the US-based Indus (‘Tencent’), both existing investors of aforesaid investors, are seeking to raise
Capital Partners LLC are among the NIO Inc (‘NIO’), have participated around US$1.4 billion through an
party of cornerstone investors that have in the latter’s most recent fundraising underwritten secondary offering.
pledged an aggregate US$95 million in exercise. NIO, one of China’s leading The underwriters are granted a 30-
CStone Pharmaceuticals’s (‘CStone’) electric car manufacturers, is seeking day option to purchase an additional
initial public offering. to raise US$650 million via issuing 7.8 million American Depositary
To be listed on the Stock five-year convertible bonds (‘CBs’), Shares from the company and selling
Exchange of Hong Kong, CStone is with an option to lift its issue size shareholders.(PRC)
seeking to raise up to HK$2.4 billion to US$750 million. Hillhouse and
(US$304 million), inclusive of that from Tencent will purchase US$5 million
its pool of cornerstone investors. and US$30 million worth of the CBs, Maoyan Entertainment (‘Maoyan’),
CStone is a biopharmaceutical respectively. The CBs will bear an which is backed by Tencent Holdings
company that specialises in developing annual interest rate of 4.5%. Ltd and other investors including CMC
immuno-oncology drugs. It counts On the heels of the latest bond Holdings Ltd (‘CMC’), was listed on
Boyu and GIC as its existing investors. issue, NIO has encountered a system The Stock Exchange of Hong Kong.
(PRC) upgrade problem in a test drive of its On its first trading day, Maoyan’s share
autonomous driving car, which had price closed at HK$14.6 (US$1.9),
caused a traffic jam on a highway in a 1.4% below its offer price. At this
Eastern Bell Venture Capital Beijing. (PRC) liquidity event, none of the aforesaid
has led in the Rmb170 million investors disposed of their interests
(US$25.2 million) series A financing in Maoyan.
round of Guangdong Mancando Divestments In April 2016, CMC participated
Information Technology Co Ltd in the Rmb3 billion (US$462.1 million)
(‘Mancando’). The deal has also enlisted CStone Pharmaceuticals (‘CStone’), fundraising of Maoyan, which is an
Legend Capital as its investor. which is backed by a long list of online ticket seller for the entertainment
Mancando operates an online auto investors including 6 Dimensions industry.(PRC)
parts platform that also provides auto Capital, Boyu Capital, CITIC Private
repair services through its extensive Equity Funds Management Co Ltd,
network of operations. (PRC) GIC Pte Ltd, Hillhouse Capital
Management, Sequoia Capital
China and Yunfeng Capital was listed
on The Stock Exchange of Hong Kong.
On its first trading day, CStone’s share
price closed at HK$12.86 (US$1.7),
a 7.2% above its offer price. At this
liquidity event, none of the aforesaid
investors disposed of their interests
in CStone.
In May 2018, all of these investors
participated in CStone’s US$260 million
Series B financing.

India – Case Study: Bankruptcy
Teething I ndia’s latest attempt to consolidate

laws for resolving insolvency and
bankruptcy, the Insolvency and
Bankruptcy Code (‘Code’), came into
Pains
effect in December 2016. It has been
hailed as a major reform of Prime
Minister Narendra Modi’s government.
But the white knights who appeared at
the 11th hour to prevent the authority
from sending RTIL Ltd (‘RTIL’) into
The liquidation of Reid & Taylor reveals skin-deep the liquidation process, highlights the
skin deep knowledge of the purpose
understanding of India’s Bankruptcy Code or meaning of this Code at this early
phase of its implementation.
RTIL is an established brand in
India’s men’s fashion industry. Formerly
known as Reid & Taylor (India)
Ltd, in 2008 and 2010, through two
separate rounds of capital injections, it
raised an aggregate 8.9 billion rupees
(US$195.5 million at the then exchange
rate) from GIC Pte Ltd (‘GIC’). The
Singapore sovereign wealth fund took
a 25.4% equity stake in RTIL.
Liquidation Order
On 5 th February, the National
Company Law Tribunal Mumbai
Bench (‘NCLT’), which is empowered
to oversee the process of insolvency
resolution, ordered RTIL to proceed
with the process of liquidation. As
Key Points of 12th October 2018, RTIL owed
its financial creditors some 40.7
●●RTIL’s liquidation process exposes teething problems of India’s landmark billion rupees (US$568.8 million).
bankruptcy code two years after it has come into force The NCLT’s decision came after it
●●3 white knights express interest in RTIL, but all “miserably failed” to had exhausted all earnest efforts to
prove their financial ability to provide the capital raft RTIL needs, rendering prevent RTIL from being liquidated.
adjudicators of NCLT no choice but to order the liquidation of RTIL It even considered the proposals of
three investors who expressed interest
●●RTIL raised an aggregate 8.9 bn rupees (US$195.5 m) from GIC Pte Ltd in in RTIL, but “miserably failed to prove
2008 and 2010 their basic net worth for submission
Reprint of article published in the of Resolution Plan”, as described by
27th Feb, 2019 Subscribers’ Weekly NCLT’s documents.

India – Case Study: Bankruptcy
Frustrated NCLT
“
All potential investors
miserably failed to prove their
basic net worth for submission
”
Mr Shah of CFM which seeks
of Resolution Plan … opportunities in stressed situations,
submitted that his net worth is more
“
than 1 billion rupees, but also “backed
Mr Manseta of India Gas
out after making tall claims and wasting
… failed to … prove his bonafides but the time of the Bench”, the NCLT
produced unauthenticated documents
”
documents revealed.
which did not prove his net worth … With regard to Mr Manseta of
India Gas, NCLT was disenchanted
“
Mr Shah of CFM as it “… could not entertain the third
investor for the reason, he failed to
backed out after making tall claims
”
... prove his bonafides but produced
and wasting the time of the Bench
unauthenticated documents which did
not prove his net worth ...”
“ … very saddened with the manner in

which the investors one after the other
misrepresented the facts before us …
no confidence to further afford an
Comments
Far from just carrying out its role
of implementing the liquidation process
of insolvent companies, the NCLT
”
opportunity for anybody showed a great deal of understanding
and leniency before declaring RTIL's
sad fate. It was prepared to override
creditors’ position when “almost all the
With “… investors one after the CFM Asset Reconstruction Pvt Ltd creditors present in the Court opposed
other (having) misrepresented the facts (‘CFM’); and Mr Rinav Manseta, said to afford any further opportunity for
…”, adjudicators at NCLT expressed to be the representative of India Gas the proposed investor (referring to Mr
lack of confidence over the credibility Ltd (‘India Gas’). Manseta of India Gas) and for granting
of these investors. The bench was According to the NCLT document, time beyond 270 days in violation of
therefore left “with no other option SPGP “backed out even after taking the time line prescribed by the Code”.
but to proceed with the process of sufficient time to submit the documents In the end, it was these three investors’
liquidation (of RTIL)”, adding that and to prove his networth”. The misrepresentation of the facts that
it was “saddened” to have to take unnamed representative of SPGP was gave the judicial body “no confidence
this route. reported to indicate that his net worth to further afford an opportunity for
was 700 million rupees, but market anybody”.
Three White Knights reports pegged it at just 70 million It has only been two years since the
The three potential white knights rupees. Since then, subsequent reports Code came into effect. Perhaps with
were brought in by the Employees suggested that SPGP was unable to pay time, the courts appointed to adjudicate
Association (‘Association’) of RTIL. the required “earnest money” necessary insolvency will not have to entertain
The Association was still making in the takeover of RTIL. such silly and irresponsible acts. n
attempts to save the company when
the legally allowed 270-day settlement
time limit passed. The NCLT was Anger of Creditors
“
nonetheless prepared to accommodate
requests from the Association to Almost all the creditors present in the Court opposed to
prevent RTIL from being liquidated. afford any further opportunity for the proposed investor
But the adjudicators were clearly and for granting time beyond 270 days in violation of
”
frustrated and disappointed with the the time line prescribed by the Code
three potential investors: the Hong
Kong-based SPGP Holdings (‘SPGP’);
a Mr S V Shah, who claimed to represent

India – Fund Management
Thriving in Taj
India records defining private equity movements in 2018 to exiting investors of Flipkart Pte Ltd
in its sale to Walmart Inc, the US giant
retailer (Fig. 14).
Key Points Behind the 2018 façade of glowing
fund raising and distribution results,
●●2018 was a defining year for India’s private equity industry - India’s private equity market has in fact
◦◦ US$7.2 bn of fresh capital raised is a near 50% increase compared to the been undergoing extensive evolutionary
US$4.9 bn for 2017 changes. While the year saw some of the
◦◦ US$14.9 bn in distribution propelled India as the market with the largest most established players retreating from
capital return, surpassing China’s US$8.7 bn by a far margin this market, each for different reasons,
◦◦ while a number of existing players, IDFC Ltd, IL&FS and JP Morgan Asset new names are coming into the market,
Management, are disposing of their alternative investment arms, buyers are while others are strengthening their
seizing upon growth opportunities in India exiting market positions. At the same
◦◦ India’s attempt to deleverage its banks’ NPL pile opened the floodgate of time, the Insolvency & Bankruptcy
debt funds, with the US$1.3 bn EISAF II being the largest Code, 2016 (‘Bankruptcy Code’) that
was introduced in May 2016, has lent
Reprint of article published in the domestic fund management firms an
20th Feb, 2019 Subscribers’ Weekly opportunity to showcase their fund
raising prowess.
By all accounts, 2018 carved out
new terrain for Indian private equity.
Retreat & Advance

There are compelling reasons for
new entrants or existing investors to
strengthen their market position in
India. According to the World Bank,
India’s gross domestic product in the
2018-2019 fiscal year is expected to
A
grow at 7.3%, higher than the 6.3%
fter years of being the number of funds that brought in forecast for China.
overshadowed by China, this pool of fresh capital, at 49, is a It is India’s enticing economic
India’s private equity asset 25.6% increase from 39 the previous growth that attracted the Bahrain-based
class bid adieu to 2018 with much year; whereas China in fact recorded a Investcorp, a provider and manager of
to celebrate. fall in the number of funds. alternative investment products, to enter
The amount of fresh capital raised The feather on India’s cap is the the alternative asset space in Asia’s third
during the 12 months in 2018, at US$7.2 stupendous distribution record that it largest economy. Investcorp unveiled
billion, although only a fraction of attained in 2018, at US$14.9 billion. It is its acquisition of the private equity
China’s US$44.9 billion, is nonetheless the first time India generated the largest and real estate investment management
an impressive near 50% increase to the distribution among Asian countries, businesses of IDFC Alternatives Ltd
US$4.9 billion for 2017. In particular, thanks to the US$8.3 billion returned (‘IDFC Alternatives’), a subsidiary

of IDFC Ltd (‘IDFC’). Mr Rishi around US$13 billion, in August last Economic Times of India, three domestic
Kapoor, co-chief executive officer of year IL&FS defaulted on a series of firms, Edelweiss Financial Services
Investcorp, described the India market debt payments. Just before the end of Ltd, Altico Capital India Ltd and India
as “in its growth trajectory” with last year, it initiated the solicitation of Infoline Group, were among the pool
“great potential”. expressions of interest for IIM. of suitors.
The combined assets under IIM is one of the assets being put After operating its infrastructure
management sold to Investcorp are on the block by IL&FS. IIM manages investment arm for 12 years in India,
approximately US$430 million. As part an array of funds, and in addition to the US-based JP Morgan Asset
of the takeover agreement, Investcorp traditional private equity funds it also Management decided to bid adieu to
is to absorb the management team manages real estate, infrastructure and infrastructure investing in this market.
which has around 20 professionals. infrastructure debt funds. The total For the New York-based The Rohatyn
Spinning off its alternative assets has assets under management are around Group (‘TRG’), however, it was an
been an ongoing process undertaken by 133.4 billion rupees (US$1.9 billion). opportunity to further strengthen its
IDFC. In its 2017-2018 annual report, In less than two months since IIM position in India since taking over Citi
IDFC indicated that it had entered into was on the block, according to the Venture Capital International from
a definitive agreement with the US-
based Global Infrastructure Partners China & India’s PE Profile (2017 & 2018)
for the sale of its infrastructure asset Fund Raised
management business. (US$ bn)
50
Since receiving the licence to 44.9
In the 12 months between 2017
operate as a full-fledged bank in July 40
33.9 and 2018, fresh capital for India-
2015, IDFC, which traces its roots as 30 focused funds has surged by 47%,
a provider of infrastructure financing, whereas that for China has surged
20 by 32.4%, suggesting interest
has been engaged in the process of
10 of the India market has been
transforming its identity and shedding 4.9 7.2
overwhelming
off its “non-core” assets which include 0
2017 2018
infrastructure, private equity and real
estate assets. Distribution
(US$ bn)
Coincidentally, another iconic name 16 14.9
in India’s infrastructure financing,
Infrastructure Leasing & Financial 12 11.6 India, for the first time, takes
9.3 8.7 the crown as the market that
Services Ltd (‘IL&FS’), will soon be 8 boasts the largest distribution, at
severing ties with its private equity US$14.9 bn, that overshadows the
investment arm, IL&FS Investment 4 US$8.7 bn for China
Managers (‘IIM’). Different from
0
IDFC, however, IL&FS is disposing 2017 2018
of IIM under a stressed situation. China India
With a debt mountain estimated to be
Retreat & Advance (as of Feb 2019)

Selling Party Business(es) Buying Party Remarks
The combined assets under management to be
Real Estate & Private
Investcorp sold to Investcorp is estimated at US$430 m.
equity businesses
IDFC Alternatives Ltd Investcorp to absorb around 20 professionals
Global Infrastructure Manages two infrastructure funds with an
Infrastructure
Partners aggregate fund pool of US$1.8 bn
JP Morgan Asian AIRRO holds around US$750 m in Indian
JP Morgan Asset
Infrastructure & Related The Rohatyn Group infrastructure assets. TRG is to absorb managers
Management
Resources Opportunity from AIRRO
Expression of interest The only listed private equity firm on Indian
from Edelweiss Financial bourses, it manages private equity, real estate,
Infrastructure Leasing & IL&FS Investment
Services Ltd, Altico infrastructure and infrastructure debt funds with
Financial Services Ltd Managers
Capital India Ltd and total assets under management around 133.4 bn
India Infoline Group rupees (US$1.9 bn)

Citibank in 2013. TRG acquired the JP In late January this year, Edelweiss Fund LP that has a target size of US$1
Morgan Asian Infrastructure & Related Alternative Asset Advisors Ltd, billion. It was then the most ambitious
Resources Opportunity (‘AIRRO’) the alternative investment arm of target size for an Indian debt fund.
and its management team for an Edelweiss Group, proudly announced But the final close of EISAF II speaks
undisclosed amount. the final close of EISAF II, at 92 volume to investors’ overwhelming
In its public statement on this billion rupees (US$1.3 billion). It took interest of stressed assets in India and
acquisition, TRG spelled out the the crown as the largest debt fund for the fund raising prowess of domestic
synergy of this commitment to India. this market. Significantly, EISAF II is firms (Fig. 16).
It said that “the addition of AIRRO’s a testament of international investors’
portfolio of Indian infrastructure assets absolute confidence in domestic fund Comments
is a strong strategic fit …” (Fig. 15). management firms’ ability to access and The first month of the year further
execute stressed deals. affirmed India’s magnetism and its
Debt Funds Balloon Since the gazette of the Bankruptcy home-grown fund managers’ ability
Along with Investcor p and Code, India has attracted a growing to secure envious commitments from
TRG buying up established fund pool of investors that have dropped international institutions. ChrysCapital
management assets in India, India’s their debt fund anchors in its market. Investment Advisors successfully
Bankruptcy Code was designed to KKR & Co has been providing debt closed its latest fund, at US$850 million,
clear the load of non-performing financing since 2015, while Baring the firm’s largest fund since a new
loans, which have been accumulating Private Equity Asia Ltd (‘Baring management team took over the firm
in India’s banks since late 2016. The Asia’) is said to be raising a credit fund in 2012.
code opened the floodgate for debt that focuses on India with a target size With investors seeking another
funds. Of the US$7.2 billion raised of 5 billion rupees (US$74.4 million). sizeable market outside of China to
during 2018, debt funds accounted for Baring Asia is also raising an offshore mitigate risks arising from the trade
US$2 billion, an amount that exceeded US$500 million fund that will co-invest dispute between the US and China,
that raised for Growth/Expansion with its onshore one. and over 1 billion people in India under
which has been the mainstay of India’s In 2016, Bain Capital Credit 60 years of age, the sheer size of this
fund pool. It is by far the most robust teamed up with the domestic Piramal market along with its growth potential
amount raised by debt fund managers Enterprises Ltd and launched their are enticing factors that beckon inflow
in a 12-month period. joint venture debt fund India Resurgent of foreign capital. n
Profile of Private Debt Funds in India (2016 – 2018)

Annual Growth Private Debt Fund – by Segment
(US$ m)
2,500 VC Debt
4.5%
2,000 1,959.3 Infrastructure
Debt
1,500 13.2% PE Debt
82.3%
1,000
US$2.3 bn
500
200 176.6
0
2016 2017 2018
Private Debt Fund Pool
Private Debt Fund Managers Fund Size Range

Global/ US$50 m to
their Asian Affiliates US$99 m
6.9% 10%
Joint Ventures
18.1% Domestic
75% US$100 m to US$1 bn to
US$249 m US$1.5 bn
40% No. of 40%
US$2.3 bn Funds Surveyed:
10
US$250 m to
US$499 m
10%

India – Funds/Investments/Divestments
Funds Zephyr Peacock India has led The Blackstone Group

a 550 million rupees (US$7.7 million) (‘Blackstone’) has reached an agreement
3one4 Capital has completed the investment in Shiksha Finance Services to acquire Aadhar Housing Finance Ltd
initial closing of its third investment India Pvt Ltd (‘Shiksha Finance’), a non- (‘Aadhar’) from its existing controlling
fund, Continuum I, at 1.5 billion rupees banking financial company that targets shareholders. According to media
(US$20.9 million). Among its list of the education sector by providing loans reports, the transactions values Aadhar
investors is Sojitz Corp, a Japanese to students. In this round of financing, at 27 billion rupees (US$378 million).
conglomerate. With a final target size Aspada Investment Co and Michael In addition, Blackstone will also inject
of 3.5 billion rupees, Continuum I & Susan Dell Foundation, both 8 billion rupees growth capital into
will seek growth opportunities among existing investors of Shiksha Finance, Aadhar, bringing the total transaction
automation, media, financial technology have participated. sum to 35 billion rupees.
and healthcare sectors. Shiksha Finance also funds Aadhar is one of the largest
Coinciding with the initial close educational institutions that require independent affordable housing finance
of its latest fund, 3one4 has joined capital for asset creation and companies in India with a network of
BEENEXT Pte Ltd and others in the infrastructure building. 316 branches.
US$5 million raised by Open Financial Blackstone’s investment in
Technologies Pvt Ltd, which runs an Aadhar also provides an exit route
online banking platform for small and Matrix Partners India has led in for International Finance Corp which
medium-sized enterprises. the US$10 million raised by Country invested US$4.5 million in Aadhar
Delight. The deal also enlisted Orios in 2010.
Venture Partners, an existing investor
Investments of Country Delight which is operated
by Beejapuri Dairy Pvt Ltd. It is a milk Eight Roads Ventures has led in
SAIF Partners (‘SAIF’) has led a producer and distributor. the US$6 million investment in Ashish
900 million rupees (US$12.6 million) Life Science Pvt Ltd (‘Ashish Life
investment in Ziploan, joined by Science’), joined by the Netherlands-
the latter’s existing investors Matrix T P G G r ow t h i s t o i nve s t based Anterra Capital.
Par tner s India, Waterbridge US$30 million in the India-listed Solara Established in 2002, Ashish
Ventures and Whiteboard Capital. Active Pharma Sciences Ltd (‘Solara’). Life Science is a veterinary products
Ziploan is a digital lender that This is the first deal by TPG Growth in manufacturer. The new funding will
provides small ticket loans of up the life sciences sector in India. help the company to expand into other
to 500,000 rupees. It has thus far Solara is a manufacturer of active markets including Australia, Europe
disbursed around 1.5 billion rupees to pharmaceutical ingredients. It runs two and South Africa.
3,500 borrowers. research and development centres in
The deal coincides with SAIF India, staffed by nearly 150 scientists, in
having concluded its investment in addition to having operations in more Divestments
Persistent Systems Ltd (‘Persistent’), than 40 countries. The deal is expected
a technology developer and software to be closed in early this year, subject to Bain Capital (‘Bain’) and GIC
services. SAIF first invested in Persistent regulatory and shareholder approvals. Special Investments Pte Ltd
in 2012. (‘GIC’) have further pared down
their shareholdings in the US-listed
Sequoia Capital India has led in Genpact Ltd (‘Genpact’) from 25.2%
Creador has increased its interest the US$8 million series A investment to 19.9%. The share disposal is
in Ujjivan Financial Services Ltd round of smallcase Technologies Pvt conducted through a placement sale
(‘Ujjivan’) for 975.9 million rupees Ltd. The deal is joined by Blume which returned US$322.2 million to
(US$13.7 million). At the same time, Ventures, WEH Ventures and both investors.
Sequoia Capital India, which has BEENEXT Pte Ltd. Genpact is among one of the
been a backer of Ujjivan for over a The target company operates an largest business process outsourcing
decade, has pared down its interest in online trading platform for stocks and operators in India. Since 2012, Bain and
the microfinancing company. exchange-traded funds. GIC have been investors of Genpact.
Ujjivan had earlier enlisted
CX Partners, Elevar Equity and
International Finance Corp as
its investors.

Japan blurbs
Japan/South Korea – Funds/Investments/Divestments
Funds DCM Ventures has pledged J-Will Partners Co Ltd has

¥970 million (US$8.8 million) to tabled a tender offer to privatise ND
South Korea-based Hahn & Co, Union Tech Co Ltd. The latter Software Co Ltd (‘ND Software’) in a
which is currently raising its Hahn & operatesSUSTINA, a business-to- management buyout deal that values
Company III LP (‘Hahn III) and Hahn business constr uction matching the target’s equity at around ¥30 billion
& Company III-S LP (‘Hahn III-S), platform; and Craft Bank, a matching (US$272.9 million). The offer price, at
has secured an allocation of up to app that connects craftsmen with ¥1,700 or US$15.5 per share, represents
US$100 million from The New York construction clients. (Japan) a 28.8% premium over the last closing
State Teachers’ Retirement System. price of ND Software on the trading
The funds will take controlling stakes day before the announcement was
in South Korea-based mid to large cap IMM Private Equity (‘IMM PE’) made public.
companies. Hahn III-S will co-invest has agreed to invest 750 billion won Listed on the Tokyo Stock
alongside Hahn III. (US$668.2 million) in South Korea- Exchange, ND Software is a software
Separately, the institutional investor listed Shinhan Financial Group Co Ltd developer engaged in the nursing care
has also allocated US$75 million to (‘Shinhan’) through subscribing to the and medical sectors. (Japan)
ChrysCapital VIII LP which was latter’s convertible preference shares.
closed at US$850 million in January. Upon conversion of the aforesaid
(South Korea) preference shares, IMM PE will own Divestments
an approximate 3.6% stake in Shinhan,
on a fully-diluted basis. Polaris Capital Group Ltd
Investments Shinhan is a leading financial (‘Polaris’) has agreed to sell its 100%
services group spanning across banking, stake in Hivic Co Ltd (‘Hivic’) to
Silicon Valley-based Fenox insurance and asset management Yamae Hisano Co Ltd for ¥8.55 billion
Venture Capital and DG Incubation sectors.(South Korea) (US$77.3 million). The transaction is
Inc, both existing investors of Monstar expected to be completed by the end
Lab Inc (‘Monstar’), are party to of March.
the latter’s most recent fundraising Global Brain Corp has teamed Polaris invested in Hivic through
exercise. In this round of financing, the up with Globis Capital Partners its Fund III in 2016. Hivic sells
company has raised around ¥2.4 billion (‘Globis’) to participate in the ¥3.5 prefabricated housing materials and
(US$21.9 million). billion (US$31.7 million) raised by equipment.(Japan)
Monstar is a digital product Mirrativ. The transaction has also
development firm which is engaged enlisted JAFCO Co Ltd, ITOCHU
in planning, designing and producing Technology Ventures and YJ Capital. CVC Capital Partners (‘CVC’)
mobile and web apps. It counts YJ Mirrativ is a live streaming app that and other shareholders of HITOWA
Capital and Shinsei Corporate enables users to broadcast content on Holdings Co Ltd (‘Hitowa’) have agreed
Investment Ltd as its earlier investors. the mobile screen. Globis has been to sell their combined 100% interest in
(Japan) the company’s investor since 2018. Hitowa to a pool of investors led by
(Japan) Polaris Capital Group Co Ltd. The
transaction size is unknown. This will
Global Brain Corp has teamed conclude CVC’s three-year investment
up with D4V to participate in the SMBC Venture Capital, Sansei in the company that provides house
¥700 million (US$6.3 million) raised Capital and Venture Labo Investment cleaning, elderly care and childcare
by Voicy Inc. The latter enables users are among the list of investors to invest support services. (Japan)
to share their audio content and ¥806.4 million (US$7.3 million) in
obtain news information through its Innophys Co Ltd (‘Innophys’). The
podcasting app. target company develops powered
The transaction has also enlisted exoskeletons, which provide back
TBS Innovation Par tners and support for users to lift heavy stuffs in
Dentsu Innovation Partners Inc as the nursing and industrial fields.
its investors. (Japan) Established in 2013, Innophys
had previously raised capital from
INCJ Ltd, DBJ Capital Co Ltd and
Mitsubishi UFJ Capital Co Ltd.
(Japan)

Southeast Asia – Funds/Investments/Divestments
Funds Separately, Vertex Ventures has Advantage Partners (‘Advantage’)

led in the US$10 million series A announced its recent acquisition of
Indonesia-based Intudo Ventures investment round of Thailand-based Elise Fashion Ltd (‘Elise’), a women
has closed its second fund, Intudo Sunday Ins Ltd. The latter is an apparel brand that focuses on the 20-
Ventures II LP (‘Fund II’), at insurtech startup that leverages on 45 year-old segment. The transaction
US$50 million. The fund has enlisted AI technology to provide a variety of is Advantage’s first investment in
US-based family office Wasson personalised insurance products and Vietnam. Financial details of the
Enterprise as among its investors, in services.(Singapore)(Thailand) transaction were not disclosed.
addition to Taiwan’s Uni-President Founded in 2011, Elise currently
Enterprises Corp and investment operates 95 stores across Vietnam.
firm CTBC Venture Capital Co Ltd. China-based Gobi Partners has Elise is said to have secured investment
Fund II has the mandate to invest partnered with Sonae IM, the corporate from Japan-based Fast Retailing Co
in Indonesian early-stage companies venture arm of Portugal-basedSonae Ltd’s Uniqlo unit in October last year.
in consumer, finance, healthcare and Group, and co-led in the US$20 million (Vietnam)
education sectors. (Indonesia) investment round of Singapore-based
ViSenze Pte Ltd(‘ViSenze’). The deal
is joined by a pool of the latter’s Sequoia Capital India (‘Sequoia
Investments existing investors including Rakuten India’) has invested an undisclosed
Ventures, WI Harper Group and sum in Singapore-basedCircles.Life, a
Sequoia Capital India and UOB Venture Management. mobile services provider. The capital
Australia-based AirTree Ventures, Founded in 2012, ViSenze is injection would fund Circles.Life’s
both existing investors of Singapore- an artificial intelligence company global expansion into at least five
based 90 Seconds Pte Ltd (‘90 Seconds’), that develops visual technology for new markets, including Taiwan and
are among the party of investors that e-commerce and digital businesses. Australia, over the next 18 months.
have injected US$20 million into the (Singapore) Separately, Sequoia India has led in
company. The deal has also enlisted the US$3 million seed funding round of
Susquehanna International Band Protocol, which is based in both
Group, Qualgro Partners Pte Ltd Singapore-based DeClout Ltd Singapore and Thailand. The deal has
and the Australia-based Right Click has identified Novo Tellus Capital attracted the US-based SeaX Ventures
Capital as its investors. Partners as the party that had entered and South Korea-based Dunamu &
90 Seconds operates an online into an agreement to purchase a 12.75% Partners as its investors.
video creation platform that simplifies stake of its subsidiary, Procurri Corp Band Protocol runs a blockchain
the complexity of video production Ltd (‘Procurri’), for S$12 million platform that enables users to get
and provides users with access to (US$8.8 million). crypto tokens for their participation in
videographers, directors and animators. The acquisition was announced data curation.(Singapore)(Thailand)
(Singapore) back in November 2018 but identity
of the buying party was not disclosed.
Procurri is a provider of data A long list of investors comprising
Vertex Ventures and Openspace centre equipment and IT maintenance East Ventures, SMDV and Insignia
Ventures are among those that services. It counts ICH Gemini Pte Ventures Partners have participated in
have pledged over S$20.5 million Ltd as its earlier investor.(Singapore) the US$8.5 million raised by Indonesia-
(US$15.2 million) to Singapore-based based Fore Coffee. The transaction
Validus Capital Pte Ltd (‘Validus’). has also secured commitments from
The transaction has also attracted Indonesia-based Alpha JWC Agaeti Venture Capital as well as
p a r t i c i p a t i o n f r o m T h a i l a n d ’s Ventures is party to the US$5.5 million Pavilion Capital Holdings Pte Ltd,
A d d Ve n t u r e s a n d V i e t n a m ’s raised by Vietnam-based LOGIVAN, a subsidiary of Temasek Holdings
VinaCapital Ventures. FMO - which operates a platform that enables (Pte) Ltd.
Netherlands Development Finance businesses to find and manage truck Fore Coffee is a specialty coffee
Co is the lead investor in this deal, which logistics services by connecting users startup that operates 16 outlets in major
is also its maiden direct investment directly with truck owners. malls across Jakarta, the capital city of
in Asia. LOGIVAN had earlier raised Indonesia.(Indonesia)
Validus runs a peer-to-peer lending capital from Insignia Ventures
platform for small and medium- Partners, VinaCapital Ventures and
sized enterprises. Ethos Partners. (Vietnam)

Pan-Asia/Rest of the World – Funds/Investments/Divestments
Funds Investments 6 Dimensions Capital, which

focuses on cross-border healthcare
The Netherlands-headquartered SoftBank Vision Fund has led in assets between China and other markets
Capital 4 Development Partners the US$1 billion raised by the US-based in the West, is among those that have
(‘C4D’) announced the first close of Flexport Inc (‘Flexport’), joined by pledged US$60 million to the US-based
its Capital 4 Development Asia Fund the latter’s existing investors including Dewpoint Therapeutics (‘Dewpoint’).
(the ‘Fund’), at US$30 million. The China-based Cherubic Ventures, DST The deal was led by the US-based
latter will invest in India, Indonesia Global and Susa Ventures. Polaris Partners.
and the Philippines, targeting small and Flexport is a full-service air and Dewpoint is a biotechnology
medium-sized enterprises (‘SMEs’). It ocean freight forwarder that serves firm that is dedicated to translating
has a mandate to invest at least 30% around 10,000 clients and suppliers new insights about biomolecular
of its capital in SMEs owned or led by across 200 countries. (USA) condensates into drug discovery.(USA)
women. C4D is targeting a final close
at US$50 million by the end of the year.
The Fund is backed by a list MBK Partners (‘MBK’) has agreed China-based Hopu Investment
of impact investors, including the to acquire part of the Asian business of Management has teamed up with the
Netherlands’s Dutch Good Growth Belgium-based GODIVA Chocolatier Bill & Melinda Gates Foundation to
Fund and Australia’s Investing in (‘GODIVA’), which is owned by Yildiz participate in the US$55 million series
Women, an initiative of the Australian Holding. The transaction size was not B financing round of the US-based
Government to improve women’s disclosed but was estimated to be over Lyndra Therapeutics Inc (‘Lyndra’).
economic participation. (Pan-Asia) US$1 billion. The deal is led by Polaris Partners, an
The target business comprises existing investor of Lyndra.
the retail and distribution operations Lyndra develops oral, ultra-long-
PG Impact Investments AG (‘PG of GODIVA in Japan, South Korea, acting, sustained-released therapies
Impact’), the global impact investment Australia and New Zealand. These that allow dosages to be administered
firm backed by Partners Group, operations are said to post around weekly or monthly. It is set to change
announces the final closing of its ¥40 billion (US$360 million) in annual how people take medicines. (USA)
maiden fund, PG Impact Investments sales, with more than 90% coming
I LP, at US$210 million. The founders from Japan.
and employees of PG Impact and In addition to the aforesaid South Korea-based SoftBank
Partners Group have committed business, MBK will also purchase Ventur es Asia has led in the
US$65 million, or 31% to the new GODIVA’s production facility in US$30 million series B investment
fund. The fund has the mandate to seek Belgium in this deal. (Pan-Asia) round of the Israel-based Pliops,
venture opportunities among financial a company that is engaged in the
inclusion, energy access, agriculture, development of storage processor
affordable housing and education Breakthrough Energy Ventures technology for cloud storage and
related companies in the emerging (‘BEV’) was party to the US$33 million database applications. The deal is joined
markets.(Emerging Markets) series A fundraising round of the US- by the US-based Intel Capital and the
based Sustainable Bioproducts. The Israel-based Viola Ventures.
Silicon Valley-based 1955 Capital is the The global public cloud services
TPG announced the final close of lead investor in this deal. market is forecast to reach US$206.2
its TPG Capital Asia VII (‘TPG VII’) Sustainable Bioproducts is a billion in 2019, a 17.3% increase from
at US$4.6 billion, a near 40% larger biotechnology company that develops the US$175.8 billion in 2018, according
than its predecessor which was closed fermentation technology to grow to Gartner Inc, a US-based research and
in 2014, at US$3.3 billion. edible protein with substantial advisory firm. (Israel)
TPG VII has attracted allocations nutritional value.
from a long list of institutions in the US. BEV is backed by a pool of investors
Among them are California Public that seeks to finance breakthrough
Employees’ Retirement System, energy technologies. It has secured
Employees Retirement System of more than US$1 billion and counts
Texas and University of Washington Messrs Bill Gates and Jack Ma as its
Investment Management. backers.(USA)
(Pan-Asia)

Real Assets
News Aberdeen Standard Investments Investments

(‘ASI’), the asset management business
Fortress Investment Group LLC of global investment firm Standard Morgan Stanley Real Estate
(‘Fortress’), which was acquired by Life Aberdeen plc, has taken over the Investing, the private real estate
SoftBank Group Corp (‘SoftBank’) in Hong Kong-based Orion Partners investment arm of Morgan Stanley
2017, is mobilising up to ¥400 billion (‘Orion’), a real estate investment Investment Management, has
(US$3.6 billion) to invest in Japan’s manager. ASI has been an investor acquired a majority stake in KSH Infra
properties, according to Bloomberg, of Orion for more than a decade. Pvt Ltd (‘KSH Infra’) for about 3.5
citing Mr Akio Yamashita, Fortress’s Transaction details were not disclosed. billion rupees (US$49.3 million).
representative in Japan, as the source. Established in 2000, Orion KSH Infra runs two warehousing
Among the target assets are hotels, managed around US$900 million of and industrial logistics parks in India.
office buildings and data centres direct real estate investments in Asia as Following the transaction, it will be
operating across the country. of 31st December 2018. demerged from its parent company,
Fortress, with a global investment ASI is Europe’s second largest real KSH Distriparks Pvt Ltd. (India)
mandate, manages a broad range of estate investment manager. As of 30th
assets on behalf of its institutional June 2018, it managed US$56.3 billion
clients, covering private equity, real of real estate assets across the UK, Warburg Pincus, the largest
estate, credit and traditional asset Europe and Asia. (Pan-Asia) shareholder of Indonesia-based NWP
management strategies. It managed Retail, has participated in the latter’s
about US$42.1 billion of assets as of most recent fundraising exercise. NWP
30th September, 2018. (Japan) Funds Retail has raised about US$200 million
and has also secured commitments
KKR Asia Real Estate Partners from the Korean Teachers’ Credit
Singapore-based ARA Asset SCSp (‘KKR RE’) and PAG Asia Union and the CITIC Securities One-
Management Ltd (‘ARA’), a real assets Special Situations Fund III LP (‘PAG Belt-One-Road Fund.
fund management firm, has sold six SS III’) has each separately secured Co-founded by Warburg Pincus
office floors at Singapore’s Suntec City US$75 million from Texas Permanent and PT City Retail Developments
to Alpha Investment Partners Ltd, a School Fund. Tbk in 2015, NWP Retail is a leading
subsidiary of Keppel Capital, according KKR RE is KKR & Co’s first Asia- real estate platform that specialises in
to various local market reports. The focused real estate fund while PAG SS developing shopping malls across key
sale is estimated to have a price tag of III is the successor fund of PAG Asia cities in Indonesia. It has a portfolio of
S$160 million (US$117.9 million), based Special Situations Fund II LP which 33 projects covering around 800,000
on market estimates. was closed in 2015 with a capital pool square metres of gross floor area.
In April 2017, ARA was privatised of US$1.4 billion. (Pan-Asia) (Indonesia)
by a consortium of investors including
AVIC Trust, Cheung Kong Property
Holdings Ltd, Warburg Pincus
and others, for S$1.8 billion (US$1.3
billion at the then exchange rate). In
this “go private” scheme for ARA,
Warburg Pincus took a 30.7% stake.
(Singapore)

SW
Subscribers’ Weekly Summary – Feb 2019
■■ Sina Capital to Drive Autonomous Trucks

INSTITUTIONAL INVESTORS Sina Capital has led in the recent series D financing exercise
undertaken by Beijing TuSimple Future Technology Co Ltd
Funds (‘TuSimple’), which raised US$95 million ... (PRC)
for the week ending 1st Feb, 2018
■■ Temasek in Fashion E-Commerce & Food Delivery
■■ Lilly Asia Raises Fund V
Temasek Holdings (Pte) Ltd (‘Temasek’) and EDBI Pte Ltd, both
Lilly Asia Ventures (‘Lilly Asia’) has commenced the fundraising
investment units of the Singapore’s government, were party to the
exercise of its latest biomedical focused fund, LAV Biosciences Fund
US$226 million raised by the Singapore-based ...(Singapore) (USA)
V LP, with a target size of US$750 million ... (Pan-Asia)
■■ Temasek Visits Eye Hospital
for the week ending 8th Feb, 2019 -
Temasek Holdings (Pte) Ltd has pledged 2.7 billion rupees (US$38.1
■■ JAL Launches Corporate Venture Fund
million) to Dr Agarwal’s Healthcare Ltd (‘Dr Agarwal’). The latter is the
Japan Airlines Co Ltd (‘JAL’) has set up its corporate venture fund,
controlling shareholder of the India-listed ... (India)
Japan Airlines Innovation Fund, with a capital pool of US$70 million.
The fund has the mandate to invest in technology ... (Global)
for the week ending 22nd Feb, 2019 -
■■ GIC to Provide Back Office Support to Retirement
& Benefit Plans
■■ Oregon Has Clear Views on China Opportunities
GIC Pte Ltd is among those that have agreed to purchase just under a
Oregon Public Employees Retirement Fund has allocated US$200
25% stake in the US-based Ascensus LLC for an undisclosed amount.
million to ClearVue Partners III LP (‘ClearVue III’), according to
The deal was led by Atlas Merchant Capital LLC ... (USA)
documents released by the pension fund ... (PRC)
for midweek 27th Feb, 2018
■■ Temasek & Lilly Asia Advance Immune Cell Gene Therapies
■■ Allianz Boosts War Chest for Digital Assets
Temasek Holdings (Pte) Ltd has led in the US$85 million series B
Allianz SE (‘Allianz’), among the largest insurers in Europe,
financing round of Gracell Biotechnology Ltd (‘Gracell’). The deal has
announces increasing its capital pool for its digital investment unit
also enlisted ... (PRC)
Allianz X GmbH (‘Allianz X’) to €1 billion (US$1.1 billion) ...(Global)
■■ NY State Continues Relationship with Boyu & CDH Divestments

The New York State Common Retirement Fund has recently made
allocations to two China funds. The institution has earmarked US$39.9 for the week ending 15th Feb, 2019 -
million for Boyu Capital Fund IV which is ... (PRC) ■■ GIC Trims Down Interest in CICC
GIC Pte Ltd (‘GIC’) has sold a parcel of its shares in China
for midweek 27th Feb, 2018 International Capital Corporation Ltd (‘CICC’) since the beginning of
■■ IFC to Invest in Navegar’s 2nd Philippines Fund the year for an approximate US$38.2 million ... (PRC)
International Finance Corp (‘IFC’) is planning to commit US$20
million to Navegar Fund II LP (‘Navegar II’), a Philippines-focused ■■ GIC’s Reid & Taylor to Go into Liquidation
private equity fund launched ... (The Philippines) Reid & Taylor India Ltd (‘RTIL’), a textile manufacturer which counts
GIC Pte Ltd (‘GIC’) as a substantial investor, has been ordered by
the National Company Law Tribunal (‘Court’) to ... (India)
Investments
■■ GIC Sells Interest in CICC to Alibaba
■■ Future Fund to Provide Online Customer Services
GIC Pte Ltd (‘GIC’) continues to reduce its equity interest in China
Future Fund, Australia’s sovereign wealth fund, is party to the US$50
International Capital Corporation Ltd (‘CICC’). In its latest share
million series D investment round of the US-based Gladly Software
disposal since 2017, GIC has sold 117.1 million ... (PRC)
(‘Gladly’). GGV Capital and ... (USA)
for the week ending 8th Feb, 2018

■■ BAI Joins Tencent in Integrated Solutions for Connected Cars
Bertelsmann Asia Investments is party to the US$120 million series People on the Move
A financing round of Zhidao Network Technology Co Ltd ... (PRC)
General Partners
for the week ending 15th Feb, 2019 - PineBridge Investments appoints Mr Anthony Fasso
■■ Allianz Invests in Edelweiss’s Private Debt Platform
Allianz Investment Management LLC (‘Allianz’), an investment as the chief executive officer (‘CEO’) for Asia Pacific,
arm of the German insurer Allianz Group, has invested over US$200 succeeding Mr Rajeev Mittal who has joined Fidelity
million in a private debt platform of ... (India)
International as managing director Asia Pacific-ex Japan.
■■ Beacon VC to Find Best-Performing Stocks Prior to the new position, Mr Fasso has spent nine years
Beacon Venture Capital, an investment arm of Thailand’s at AMP Capital and served as the CEO, international and
Kasikornbank Public Co Ltd, has led in the US$6.5 million pre-series
A financing round of Jitta Dot Com Co Ltd ... (Thailand) head, global clients division. (Pan-Asia)
■■ Catamaran Advisors Lifts its Stake in Prione Intermediate Capital Group plc (‘ICG’) announces the
Catamaran Advisors LLP (‘Catamaran’), the family office of Mr
Narayana Murthy, co-founder of Infosys Ltd, has lifted its stake in appointment of Mr Vijay Bharadia as chief financial and
Prione Business Services Pvt Ltd (‘Prione’) to 76% ... (India) operating officer, effective from May. Mr Bharadia is to
■■ INCJ Funds DMP’s Acquisition of 3D Maps for
succeed Mr Philip Keller who will be retiring. (Global)
Autonomous Driving
INCJ Ltd, an existing investor of Dynamic Map Platform Co Ltd StepStone Group LP announces 11 senior promotions.
(‘DMP’), is among the party of investors that pledged up to ¥22 billion
(US$198.6 million) to the company ... (Japan)
Among them is Mr Vincent Hsu who has been promoted
as partner. Mr Hsu joined the global private markets firm
■■ Nordic Microfinance Makes Impact with Women Enterprises in 2012 and is based in Beijing. He focuses on primaries,
Nordic Microfinance Initiative (‘NMI’) is party to the 340 million
rupees (US$4.8 million) raised by Svasti Microfinance Pvt Ltd, which secondaries and co-investments in Asia. (Pan-Asia)
provides microfinancing services to micro ... (India)


AUSTRALIA/NEW ZEALAND ■■ Direct Capital to Operate Premium Retirement Villages
New Zealand-based Direct Capital has joined others to acquire
Funds a minority stake in Qestral Corp Ltd(‘Qestral’), a local operator of
premium retirement villages ... (New Zealand)
■■ Enterprise Angels Launches 3rd Fund
■■ TPG Capital Asia Offers Drug & Alcohol Testing Services
Enterprise Angels (‘EA’) has launched EA Fund 3 LP, which has a
TPG Capital Asia has purchased a 35% stake in Australia-based
target size of between NZ$2 million and NZ$6 million (US$1.3 million
Safework Laboratories Pty Ltd(‘Safework’) for an undisclosed amount,
and US$4 million) ... (New Zealand)
according to The Australian Financial Review ... (Australia)
■■ EVP Closes 2nd VC Fund Divestments
Equity Venture Partners (‘EVP’) has closed its EVP Fund II (‘Fund
II’), at A$35 million (US$24.8 million). The fund enlists SiteMinder, an for the week ending 15th Feb, 2019 -
online distribution of hotel room inventory ... (Australia) ■■ KKR Soon to Leave the Solar-Powered Greenhouse
KKR & Co (‘KKR’) is reportedly seeking to exit from Sundrop Farms
■■ Wealth Manager to Partner with Roc in PE Fund Pty Ltd (‘Sundrop’) which operates a huge solar-powered greenhouse
Roc Partners is reportedly to have partnered with Crestone Wealth for planting fruits and vegetables ... (Australia)
Management, a financial services firm for high-net-worth individuals
(‘HNIs’), to set up a new fund, according to ... (Australia) for the week ending 22nd Feb, 2019 -
■■ Anacacia Capital Sells RIS Safety to Bricktop Group
for midweek 27th Feb, 2018 Anacacia Capital (‘Anacacia’) has sold its majority stake in RISsafety
■■ Quadrant Mulls Growth Fund Pty Ltd to Bricktop Group for an undisclosed amount. This concludes
Quadrant Private Equity (‘Quadrant’) is believed to have advanced Anacacia’s seven-year investment in the ... (Australia)
the idea of launching a growth fund to investors, according to The
Australian Financial Review ... (Australia)
GREATER CHINA
Investments Funds
for the week ending 1st Feb, 2018 for the week ending 1st Feb, 2018
■■ VCs to Deliver Courier Services ■■ ClearVue Launches 3rd Fund
Full Circle Venture Capital, Rampersand and Impact Investment ClearVue Partners (‘ClearVue’) has set up its third fund, ClearVue
Group, all existing investors of Australia-based Sendle, have Partners III LP, according to regulatory filing lodged by the firm. The
participated in the latter’s A$20 million ... (Australia) fund has a target size of US$600 million which is 65% ... (PRC)
for the week ending 8th Feb, 2019 - for the week ending 8th Feb, 2019 -
■■ Brookfield Tops BGH in Healthscope’s Takeover Bid ■■ Hontai Launches US Dollar Fund
Brookfield Asset Management (‘Brookfield’) has entered into an Orient Hontai Capital (‘Hontai’), the private equity arm of Orient
agreement to take over Australia-listed Healthscope Ltd, valuing the Securities Co Ltd, is raising a US$300 million venture capital fund. In
latter’s equity at as much as A$4.4 billion (US$3.1 billion) ...(Australia) 2018, Hontai acquired a 53.5% stake in the ... (PRC)
for the week ending 15th Feb, 2019 - for the week ending 22nd Feb, 2019 -
■■ Qualgro & Reinventure in AI Solutions for Recruitment ■■ All-Stars Closes US$500 Mn Fund
Singapore-based Qualgro Partners Pte Ltd has partnered with the Hong Kong-based All-Stars Investment (‘All-Stars’) is believed
Australia-based Reinventure Group Pty Ltd (‘Reinventure’) and to have closed its All-Star Investment Private Partners Fund LP, at
co-led in the A$1.5 million (US$1.1 million) ... (Australia) US$500 million, according to Bloomberg ... (Greater China)
■■ The Growth Fund to Furnish Homes ■■ Former Partner from Hillhouse Raises Maiden Fund
Sydney-based The Growth Fund has agreed to acquire a stake in Gaocheng Capital, founded by Ms Jing Hong, a former partner in
Guest Group Pty Ltd (‘Guest Group’) alongside the latter’s founder Hillhouse Capital Management (‘Hillhouse’), has garnered US$100.3
and management team, according to the ...(Australia) million for its maiden US-dollar fund ... (PRC)
Street Talk
Auspicious Names/Feng Shui of Names
“We are writing off 20% of our invested “You ought to choose luckier names –
capital for the following – ●●Indi-Vest sounds “undivest”
●●$200 m in Indi-Vest, an investment ●●Don Earn sounds “don’t earn”
platform in xxx
●●$ 82 m in Don Earn,
a donut maker in xxx ...”

■■ TPG Growth & SoftBank Asia Lead in Food Delivery

Investments TPG Growth and SoftBank Ventures Asia, through their recent joint
for the week ending 1st Feb, 2018 venture China fund, have led in the series B2 fundraising exercise
■■ Hillhouse & Tencent Subscribe to CBs in EV Maker undertaken by Shiheng ... (PRC)
Hillhouse Capital Management (‘Hillhouse’) and Tencent Holdings
Ltd (‘Tencent’), both existing investors of NIO Inc (‘NIO’), have for midweek 27th Feb, 2018
participated in the latter’s most recent fundraising exercise ... (PRC) ■■ DCM & Tiger Global Share Kitchens with Catering Brands
DCM Ventures and GenBridge Capital, both existing investors
■■ Matrix, Qiming et al in Self-Driving Car Electronics of Beijing Lianchuang Juxing Catering Management Co Ltd
Matrix Partners China has led in the Rmb400 million (US$59.4 (‘Lianchuang’), have taken part ... (PRC)
million) series B funding round of Shanghai NASN Automotive
Electronics Co Ltd (‘NASN’) ... (PRC) ■■ GGV & Lenovo Capital in Consumer Robotics
GGV Capital, an existing investor of Vincross Inc (‘Vincross’), is said
for the week ending 15th Feb, 2019 - to have participated in the latter’s US$10 million series A+ financing
■■ Boyu & GIC Cornerstone CStone Pharma’s IPO round. Lenovo Capital and Incubator Group ... (PRC)
Boyu Capital (‘Boyu’), GIC Pte Ltd (‘GIC’) and the US-based Indus
Capital Partners LLC are among the party of cornerstone investors ■■ Hillhouse, IDG Make More Group Buying
that have pledged an aggregate US$95 million ... (PRC) Hillhouse Capital Management (‘Hillhouse’), IDG Capital, MSA
Capital (‘MSA’) and Sky9 Capital, all existing investors of Beijing
■■ Eastern Bell & Legend Sell Auto Parts Online Zhouji Technology Co Ltd (‘Zhouji’) ... (PRC)
Eastern Bell Venture Capital has led in the Rmb170 million (US$25.2
million) series A financing round of Guangdong Mancando Information
Technology Co Ltd (‘Mancando’) ... (PRC)
Divestments
■■ Investors Connect Toothbrushes with Mobile App ■■ Investors to Pare Down Interest in Pinduoduo
Vision Knight Capital has led in the Rmb200 million (US$29.7 million) Sequoia Capital China, Lightspeed China Partners, Gaorong
series C investment round of Soocas (Shenzhen) Technology Co Ltd Capital and Advantech Capital are among the pool of investors that
(‘Soocas’), joined by its existing investor ... (PRC) will be paring down their interests in Pinduoduo Inc ... (PRC)
■■ Hillhouse, HG et al to Develop Cancer Drugs ■■ Maoyan Entertains a Dull Listing in Hong Kong
A long list of investors comprising Hillhouse Capital Management, Maoyan Entertainment (‘Maoyan’), which is backed by Tencent
Yingke Innovation Asset Management Co Ltd and BioTrack Holdings Ltd and other investors including CMC Holdings Ltd (‘CMC’),
Capital have participated in the US$146.6 million ... (PRC) was listed on The Stock Exchange of Hong Kong ... (PRC)
for the week ending 22nd Feb, 2019 - for midweek 27th Feb, 2018
■■ Bain to Operate Data Centres in China ■■ CStone Pharmaceuticals Debuts in Hong Kong
Bain Capital Asia (‘Bain’), through a newly-incorporated holding CStone Pharmaceuticals (‘CStone’), which is backed by a long list
company, has joined three individual investors to acquire Xiamen of investors including 6 Dimensions Capital, Boyu Capital, CITIC
Qinhuai Technology Co Ltd (‘Qinhuai’) ... (PRC) Private Equity Funds Management Co Ltd ... (PRC)
■■ China Sports Capital to Operate Football Club

China Sports Capital (‘China Sports’), jointly established by CMC INDIA
Capital Partners (‘CMC’) and Sequoia Capital China, has teamed
up with the UK-based City Football Group (‘CFG’) ... (PRC) Funds
■■ Hillhouse & Sequoia China Make Same Day Deliveries for the week ending 15th Feb, 2019 -
Hillhouse Capital Management and Sequoia Capital China have ■■ 3one4’s Latest Fund Achieves 1st Closing
co-led in the series D fundraising exercise undertaken by Lalamove 3one4 Capital has completed the initial closing of its third investment
which raised an aggregate US$300 million ... (Hong Kong) fund, Continuum I, at 1.5 billion rupees (US$20.9 million). Among its
list of investors is Sojitz Corp ...
■■ Morningside & HG Increase Capital in AI-Driven Diagnostics
for Heart & Brain Diseases
Morningside Venture Capital, HG Capital and Marathon Venture Investments
Partners, all existing investors of Shukun (Beijing) Network
Technology Co Ltd (‘Shukun’), have participated in the latter’s ... for midweek 1st Feb, 2018
(PRC) ■■ Eight Roads et al Back Veterinary Products Manufacturer
Eight Roads Ventures has led in the US$6 million investment in
■■ Sequoia, GIC et al Fund Tumour Diagnostic Solutions Ashish Life Science Pvt Ltd (‘Ashish Life Science’), joined by the
Sequoia Capital China and Lilly Asia Ventures have participated Netherlands-based Anterra Capital ...
in the Rmb850 million (US$125.8 million) series C financing round of
Burning Rock Dx (‘Burning Rock’) ... (PRC) for the week ending 8th Feb, 2019 -
■■ Blackstone Buys Affordable Housing Finance Operator
The Blackstone Group (‘Blackstone’) has reached an agreement
to acquire Aadhar Housing Finance Ltd (‘Aadhar’) from its existing
controlling shareholders. According to media reports ...
Exchange Rates
US$1 = AUD 1.40 US$1 = KRW 1,117.32 Rmb100 = AUD 20.86 Rmb100 = KRW 16,691.62
US$1 = EUR 0.88 US$1 = NZD 1.45 Rmb100 = EUR 13.15 Rmb100 = NZD 21.71
US$1 = GBP 0.76 US$1 = PHP 52.00 Rmb100 = GBP 11.37 Rmb100 = SGD 20.17
US$1 = HKD 7.85 US$1 = SGD 1.35 Rmb100 = HKD 117.26 Rmb100 = THB 467.14
US$1 = INR 71.01 US$1 = THB 31.27 Rmb100 = INR 1,062.67 Rmb100 = TWD 460.04
US$1 = JPY 110.85 US$1 = TWD 30.80 Rmb100 = JPY 1,655.11 Rmb100 = USD 14.94

■■ TPG Buys Drugs in India for the week ending 8th Feb, 2019 -
TPG Growth is to invest US$30 million in the India-listed Solara Active ■■ Investors Automate Logistics via Robots
Pharma Sciences Ltd (‘Solara’). This is the first deal by TPG Growth SPARX Group Co Ltd (‘SPARX’) has teamed up with Mitsubishi
in the life sciences sector in India ... UFJ Capital Co Ltd to participate in the ¥800 million (US$7.3 million)
raised by Kyoto Robotics Corp (‘Kyoto Robotics’) ... (Japan)
■■ Creador Ups its Stake in Ujjivan as Sequoia Pares Down ■■ KB Investment, KDB et al Invest in Medical 3D Printing
Creador has increased its interest in Ujjivan Financial Services Ltd KB Investment, Korea Development Bank and DAYLI Partners
(‘Ujjivan’) for 975.9 million rupees (US$13.7 million). At the same time, are said to have participated in the 11 billion won (US$9.9 million)
Sequoia Capital India, which has been a backer of ... financing round of Rokit Healthcare Inc (‘Rokit’) ... (South Korea)
■■ Matrix et al Order Milk from Country Delight ■■ SMBC & Mizuho Advertise with GIF Videos
Matrix Partners India has led in the US$10 million raised by Country SMBC Venture Capital and Mizuho Capital Co Ltd have participated
Delight. The deal also enlisted Orios Venture Partners, an existing in the ¥300 million (US$2.7 million) in equity and debt financing by
investor of Country Delight which is operated by ... GIFMAGAZINE Inc (‘Gifmagazine’) ... (Japan)
■■ Mirae to Hail a Ride with Ola for the week ending 15th Feb, 2019 -
South Korea-based Mirae Asset Capital, through its Mirae Asset- ■■ J-Will Partners to Take ND Software Private
Naver Asia Growth Fund, is said to have signed a term sheet to invest J-Will Partners Co Ltd has tabled a tender offer to privatise ND
an undisclosed amount in ANI Technologies Pvt Ltd ... Software Co Ltd (‘ND Software’) in a management buyout deal that
values the target’s equity at around ¥30 billion ... (Japan)
■■ Sequoia, Blume et al Trade Stocks & ETFs Online
Sequoia Capital India has led in the US$8 million series A investment ■■ KTB Network Makes Customised Videos Online
round of smallcase Technologies Pvt Ltd. The deal is joined by Blume KTB Network is believed to be among those that have participated in
Ventures, WEH Ventures and BEENEXT Pte Ltd ... the 5 billion won (US$4.4 million) investment round of South Korea-
based Shakr Media Co Ltd (‘Shakr’) ... (South Korea)
■■ Blackstone to Fund Manipal’s Acquisition of Medanta Hospital ■■ SoftBank Ventures Asia Organises Book Clubs Online
The Blackstone Group is to invest around 32 billion rupees SoftBank Ventures Asia is party to the most recent financing round
(US$447.8 million) in Manipal Education and Medical Group (‘MEMG’) of South Korea-based Trevari, which is known to have raised 5 billion
to help finance the latter’s 60 billion rupees acquisition ... won (US$4.4 million) ... (South Korea)
■■ InnoVen Backs Logistics Provider, Xpressbees for the week ending 22nd Feb, 2019 -
Venture debt provider InnoVen Capital has reportedly invested 350 ■■ DCM Connects Construction Companies &
million rupees (US$4.9 million) in Xpressbees. Operated by BusyBees Craftsmen with Clients
Logistics Solutions Pvt Ltd, Xpressbees provides ... DCM Ventures has pledged ¥970 million (US$8.8 million) to Union
Tech Co Ltd. The latter operatesSUSTINA, a business-to-business
■■ SAIF Partners Finances Digital Lender construction matching platform; and Craft Bank ... (Japan)
SAIF Partners (‘SAIF’) has led a 900 million rupees (US$12.6 million)
investment in Ziploan, joined by the latter’s existing investors Matrix ■■ IMM PE to Build Up Stake in Financial Services Group
Partners India, Waterbridge Ventures and ... IMM Private Equity (‘IMM PE’) has agreed to invest 750 billion won
(US$668.2 million) in South Korea-listed Shinhan Financial Group Co
■■ Zephyr Peacock & Impact Investors to Provide Ltd (‘Shinhan’) through subscribing to the ... (South Korea)
Education Loans
Zephyr Peacock India has led a 550 million rupees (US$7.7 million) ■■ Investors Broadcast Screen Content via Mirrativ
investment in Shiksha Finance Services India Pvt Ltd (‘Shiksha Global Brain Corp has teamed up with Globis Capital Partners
Finance’), a non-banking financial company that ... (‘Globis’) to participate in the ¥3.5 billion (US$31.7 million) raised by
Mirrativ. The transaction has also enlisted ... (Japan)
Divestments ■■ SMBC et al Back Exoskeletons Developer

SMBC Venture Capital, Sansei Capital and Venture Labo
for the week ending 22nd Feb, 2019 - Investment are among the list of investors to invest ¥806.4 million
■■ Bain & GIC Trim Stake in Genpact (US$7.3 million) in Innophys Co Ltd (‘Innophys’) ... (Japan)
Bain Capital (‘Bain’) and GIC Special Investments Pte Ltd (‘GIC’)
have further pared down their shareholdings in the US-listed Genpact for midweek 27th Feb, 2018
Ltd (‘Genpact’) from 25.2% to 19.9% ... ■■ Fenox Joins Others to Develop Mobile & Web Apps
Silicon Valley-based Fenox Venture Capital and DG Incubation Inc,
both existing investors of Monstar Lab Inc (‘Monstar’), are party to the
JAPAN/SOUTH KOREA latter’s most recent fundraising exercise ... (Japan)
Funds ■■ Global Brain Joins Others to Share Audio Content
Global Brain Corp has teamed up with D4V to participate in the ¥700
million (US$6.3 million) raised byVoicy Inc. The latter enables users
■■ Hahn & Co Secures Allocation from NY State Teachers
to share their audio content and ... (Japan)
South Korea-based Hahn & Co, which is currently raising its Hahn &
Company III LP (‘Hahn III) and Hahn & Company III-S LP (‘Hahn III-S),
has secured an allocation of up to US$100 million ...(South Korea)
Divestments
Investments ■■ CVC Sold Home Services Provider to Polaris Capital
CVC Capital Partners (‘CVC’) and other shareholders of HITOWA
Holdings Co Ltd (‘Hitowa’) have agreed to sell their combined 100%
■■ SBI, SPARX et al to Enhance Productivity
interest in Hitowa to a pool of investors led by ... (Japan)
SBI Investment Co Ltd, SPARX Group Co Ltd and FFG Venture
Business Partners Co Ltd are among those that have participated
in the series B financing round of Cinnamon Inc ... (Japan) for the week ending 22nd Feb, 2019 -
■■ Polaris to Stop Selling Prefabricated Housing Materials
Polaris Capital Group Ltd (‘Polaris’) has agreed to sell its 100%
stake in Hivic Co Ltd (‘Hivic’) to Yamae Hisano Co Ltd for ¥8.55 billion
(US$77.3 million). The transaction is expected to be ... (Japan)

■■ STIC Investment Offloads Stake in Innocean Worldwide ■■ Alpha JWC Calls for Truck Pickup
STIC Investments (‘STIC’) is said to have recently offloaded a 2.9% Indonesia-based Alpha JWC Ventures is party to the US$5.5 million
stake in the South Korean-listed Innocean Worldwide Inc (‘Innocean’) raised by Vietnam-based LOGIVAN, which operates a platform that
for 39.2 billion won (US$25.2 million) ... (South Korea) enables businesses to find and manage ... (Vietnam)

SOUTHEAST ASIA ■■ Gobi et al Shop with ViSenze
China-based Gobi Partners has partnered with Sonae IM, the
Funds corporate venture arm of Portugal-based Sonae Group, and co-led
in the US$20 million investment round of ... (Singapore)
■■ Intudo’s 2nd Indonesia Fund Closed ■■ Novo Tellus in Data Centre Equipment & IT Maintenance
Indonesia-based Intudo Ventures has closed its second fund, Intudo Singapore-based DeClout Ltd has identified Novo Tellus Capital
Ventures II LP (‘Fund II’), at US$50 million. The fund has enlisted Partners as the party that had entered into an agreement to purchase
US-based family office Wasson Enterprise ... (Indonesia) a 12.75% stake of its subsidiary, Procurri Corp Ltd ... (Singapore)
■■ Sequoia India in Mobile Services & Blockchain Platform

Investments Sequoia Capital India (‘Sequoia India’) has invested an undisclosed
sum in Singapore-based Circles.Life, a mobile services provider. The
capital injection would fund ... (Singapore)(Thailand)
■■ VCs Order Fore Coffee
A long list of investors comprising East Ventures, SMDV and Insignia
Ventures Partners have participated in the US$8.5 million raised by for midweek 27th Feb, 2018
Indonesia-based Fore Coffee ... (Indonesia) ■■ Sequoia India, AirTree et al Create Videos Online
Sequoia Capital India and Australia-based AirTree Ventures,
both existing investors of Singapore-based 90 Seconds Pte Ltd (‘90
Seconds’), are among the party of ... (Singapore)
■■ Advantage Partners Wears Vietnamese Apparel
Advantage Partners (‘Advantage’) announced its recent acquisition
of Elise Fashion Ltd (‘Elise’), a women apparel brand that focuses on ■■ Vertex Ventures in P2P Lending & Insurtech
the 20-45 year-old segment ... (Vietnam) Vertex Ventures and Openspace Ventures are among those that
have pledged over S$20.5 million (US$15.2 million) to Singapore-
based Validus Capital Pte Ltd (‘Validus’) ... (Singapore)(Thailand)
Private Equity Related Companies in This Issue

GP China Sports Capital�� 34 GenBridge Capital�� 34
3one4 Capital�� 41 ChrysCapital Investment Advisors� 40 Global Brain Corp�� 42
6 Dimensions Capital��35, 44 CITIC Private Equity Funds Global Infrastructure Partners��28, 39
1955 Capital�� 44 Management Co Ltd�� 35 Globis Capital Partners�� 42
AddVentures�� 43 ClearVue Partners��20, 34 Gobi Partners�� 43
Advantage Partners�� 43 CMC Capital Partners�� 34 Hahn & Co��29, 42
Advantech Capital�� 35 CMC Holdings Ltd�� 35 HG Capital��34, 35
Agaeti Venture Capital�� 43 Creador�� 41 Hillhouse Capital Management�34, 35
Alpha JWC Ventures�� 43 CVC Capital Partners�� 42 Hopu Investment Management�� 44
Anacacia Capital�� 30 CX Partners�� 41 ICH Gemini Pte Ltd�� 43
Anterra Capital�� 41 D4V�� 42 IDFC Alternatives Ltd�� 38
Artesian Venture Partner�� 26 DCM Ventures��34, 42 IDG Capital��26, 27, 34
Ascendent Capital Partners�� 27 DG Incubation Inc�� 42 IL&FS Investment Managers�� 39
Aspada Investment Co�� 41 Direct Capital�� 30 IMM Private Equity�� 42
Atlas Merchant Capital LLC�� 20 Dunamu & Partners�� 43 Impact Investment Group�� 30
Bain Capital�� 41 Dutch Good Growth Fund�� 44 Indus Capital Partners LLC�� 35
Bain Capital Asia�� 34 Eastern Bell Venture Capital��34, 35 Insignia Ventures Partners�� 43
Bain Capital Credit�� 40 East Ventures�� 43 Intudo Ventures�� 43
Bamboo Capital Partners�� 21 Edelweiss Alternative Investcorp��28, 38
Baring Private Equity Asia Ltd��29, 40 Asset Advisors Ltd��20, 40 Investing in Women�� 44
BEENEXT Pte Ltd�� 41 Edelweiss Financial Services Ltd�� 39 JAFCO Co Ltd�� 42
BGH Capital�� 30 Eight Roads Ventures�� 41 JD Capital�� 27
BioTrack Capital�� 35 Elevar Equity�� 41 JP Morgan Asset Management�� 39
Blume Ventures�� 41 Enterprise Angels�� 30 J-Will Partners Co Ltd�� 42
Boyu Capital Advisory Co Ltd��32, 35 Equity Venture Partners�� 30 Kington Capital�� 20
Breakthrough Energy Ventures�� 44 Fenox Venture Capital�� 42 KKR & Co��26, 30, 40, 45
Brookfield Asset Management�� 30 Full Circle Venture Capital�� 30 KTB Private Equity�� 29
Capital 4 Development Partners�� 44 Fullerton Fund Management Legend Capital�� 35
Cathay Capital Private Equity�� 32 Company Ltd�� 19 Lightspeed China Partners�� 35
Cherubic Ventures�� 44 Gaocheng Capital�� 34 Lightspeed Venture Partners�� 28
China Creation Ventures�� 34 Gaorong Capital�� 35 Lunar Capital Management�� 27

■■ SoftBank Ventures Asia in Cloud Storage

PAN-ASIA/REST OF THE WORLD South Korea-based SoftBank Ventures Asia has led in the US$30
million series B investment round of the Israel-based Pliops, a
Funds company that is engaged in the development of ... (Israel)
■■ Capital 4 to Focus on Selected SE Asia Markets
■■ 6 Dimensions Joins Others to Advance Drug Discovery
The Netherlands-headquartered Capital 4 Development Partners
6 Dimensions Capital, which focuses on cross-border healthcare
(‘C4D’) announced the first close of its Capital 4 Development Asia
assets between China and other markets in the West, is among those
Fund (the ‘Fund’), at US$30 million ... (Pan-Asia)
that have pledged US$60 million to the ... (USA)
■■ Partners Group Closes Maiden Impact Fund
■■ Global Brain to Analyse Commercial Real Estate Data
PG Impact Investments AG (‘PG Impact’), the global impact
Global Brain Corp and Battery Ventures, both existing investors of
investment firm backed by Partners Group, announces the final
the US-based CrediFi Corp(‘CrediFi’), have participated in the latter’s
closing of its maiden fund ... (Emerging Markets)
most recent US$6 million fundraising exercise ... (USA)
■■ TPG Closes its 7th Asian Fund
TPG announced the final close of its TPG Capital Asia VII (‘TPG VII’)
■■ Breakthrough Energy Advances Protein Nutrition
at US$4.6 billion, a near 40% larger than its predecessor which was
Breakthrough Energy Ventures (‘BEV’) was party to the US$33
closed in 2014, at US$3.3 billion ... (Pan-Asia)
million series A fundraising round of the US-based Sustainable
Bioproducts. The Silicon Valley-based ... (USA)
Investments
■■ SoftBank Places Vision on Autonomous Trucks
for the week ending 1st Feb, 2018 & Digital Lender
■■ Hopu Joins Others to Develop Long-Acting Oral Pills The SoftBank Vision Fund (‘Vision Fund’) has injected US$940 million
China-based Hopu Investment Management has teamed up with into the US-based Nuro, a robotics startup that leverages on self-
the Bill & Melinda Gates Foundation to participate in the US$55 driving technology to develop autonomous trucks for ... (USA)(UK)
million series B financing round of the US-based ... (USA)

LYFE Capital�� 35 Sequoia Capital India��28, 41, 43 LP
Marathon Venture Partners�� 34 Shinsei Corporate Investment Ltd�� 42 Allianz Investment
Matrix Partners China�� 27 Shunwei Capital Partners�� 34 Management LLC�� 20
Matrix Partners India�� 41 Sky9 Capital�� 34 Allianz SE�� 20
MBK Partners�� 44 SMBC Venture Capital�� 42 Beacon Venture Capital�� 20
MindWorks Ventures�� 34 SMDV�� 43 Bertelsmann Asia Investments�� 21
Mitsubishi UFJ Capital Co Ltd�� 42 SoftBank Group Corp��26, 28 Bill & Melinda Gates Foundation�� 44
Morgan Stanley SoftBank Investment Advisers�� 28 Brummer & Partners AB�� 20
Investment Management�� 45 SoftBank Ventures Asia�� 44 California Public Employees
Morningside Venture Capital�� 34 Susa Ventures�� 44 Retirement System�� 44
MSA Capital�� 34 Susquehanna International Group� 43 Catamaran Advisors LLP�� 28
Navegar GP Ltd�� 20 The Blackstone Group��27, 41 China Investment Corp�� 27
Novo Tellus Capital Partners�� 43 The Rohatyn Group�� 39 Credit Suisse�� 19
Openspace Ventures�� 43 Tiger Global Management LLC�� 34 CTBC Venture Capital Co Ltd�� 43
Orient Hontai Capital�� 34 TPG Growth�� 41 DBJ Capital Co Ltd�� 42
Orios Venture Partners�� 41 UOB Venture Management�� 43 Dentsu Innovation Partners Inc�� 42
Partners Group�� 44 Venture Labo Investment�� 42 Edelweiss Financial Services Ltd�� 20
PG Impact Investments AG�� 44 Vertex Ventures�� 43 Edelweiss Group�� 40
Polaris Capital Group Co Ltd�� 42 VinaCapital Ventures�� 43 Employees Provident Fund�� 19
Polaris Partners�� 44 Viola Ventures�� 44 Employees Retirement
Potentum Partners�� 18 Warburg Pincus�� 45 System of Texas�� 44
Qiming Venture Partners�� 27 Waterbridge Ventures�� 41 FMO - Netherlands Development
Quadrant Private Equity�� 30 WEH Ventures�� 41 Finance Co�� 43
Qualgro Partners Pte Ltd��30, 43 Whiteboard Capital�� 41 Future Fund
Rampersand�� 30 WI Harper Group�� 43 Management Agency�� 18
Right Click Capital�� 43 Yingke Innovation Asset GIC Pte Ltd�� , 20, 21, 35, 21, 35
Roc Partners�� 30 Management Co Ltd�� 35 GIC Special Investments
SAIF Partners�� 41 Yunfeng Capital��32, 35 Pte Ltd�� 41
Sansei Capital�� 42 Zephyr Peacock India�� 41 Grain Research &
SeaX Ventures�� 43 Development Corp�� 26
Sequoia Capital China�� 27, 32, 34, 35 Heliconia Capital Management�� 26

■■ ZhenFund Joins Others in Affordable Heating

& Cooling Solutions
REAL ASSETS
China-based ZhenFund, New Enterprise Associates and
Collaborative Fund, all existing investors of the US-based Dandelion Funds
Energy Inc (‘Dandelion’), have participated in the latter’s ... (USA)
■■ KKR & PAG Real Estate Funds Secure Allocations
from Texas Schools
■■ MBK to Buy GODIVA Chocolatier’s Business in Asia
KKR Asia Real Estate Partners SCSp (‘KKR RE’) and PAG Asia
MBK Partners (‘MBK’) has agreed to acquire part of the Asian
Special Situations Fund III LP (‘PAG SS III’) has each separately
business of Belgium-based GODIVA Chocolatier (‘GODIVA’), which
secured US$75 million from ... (Pan-Asia)
is owned by Yildiz Holding. The transaction size was ... (Pan-Asia)
for midweek 27th Feb, 2018 Investments

■■ SoftBank Sets Vision on Freight Forwarder
SoftBank Vision Fund has led in the US$1 billion raised by the US- for the week ending 15th Feb, 2019 -
based Flexport Inc (‘Flexport’), joined by the latter’s existing investors ■■ Warburg Pincus Pumps More Capital into Indonesia
including China-based Cherubic Ventures ... (USA) Warburg Pincus, the largest shareholder of Indonesia-based NWP
Retail, has participated in the latter’s most recent fundraising exercise.
NWP Retail has raised about US$200 million ... (Indonesia)
for midweek 27th Feb, 2018

■■ Morgan Stanley Buys Warehouse & Logistics Assets in India
Morgan Stanley Real Estate Investing, the private real estate
investment arm of Morgan Stanley Investment Management, has
acquired a majority stake in KSH Infra Pvt Ltd ... (India)

Horizons Ventures�� 26 (Diperbadankan)�� 19 Sonae IM�� 43
IDFC Ltd�� 28 Lilly Asia Ventures��20, 35 TBS Innovation Partners�� 42
INCJ Ltd��20, 42 Los Angeles City Employees Temasek Holdings
India Infoline Group�� 39 Retirement System�� 20 (Pte) Ltd�� 19-20, 43
Infrastructure Leasing & Michael & Susan Texas Permanent School Fund�� 45
Financial Services Ltd�� 39 Dell Foundation��21, 41 The New York State Teachers
Intel Capital�� 44 Mubadala Investment Co�� 26 Retirement System�� 42
International Finance Corp��20, 41 National Council for Social Uni-President Enterprises Corp�� 43
ITOCHU Security Fund�� 27 University of Washington
Technology Ventures�� 42 Nordic Microfinance Initiative�� 21 Investment Management�� 44
Jade Invest�� 27 Oregon Public Employees Wasson Enterprise�� 43
Japan Investment Corp�� 18 Retirement Fund�� 20 YJ Capital�� 42
Khazanah Nasional Bhd�� 19 Pavilion Capital Holdings Pte Ltd�� 43
Korea Development Bank�� 29 Permodalan Nasional Bhd�� 19 RA
Korean Teachers Credit Union�� 45 Public Investment Fund�� 19 Morgan Stanley Real Estate Investing
Korea Post�� 26 Rakuten Ventures�� 43 �� 45
Korea Post Insurance�� 26 Recruit Holdings Co Ltd�� 20
Korea Post Savings�� 26 Reinventure Group Pty Ltd�� 30
Kumpulan Wang Persaraan Sojitz Corp�� 41

Deal Summary – as of 28th Feb 2019
Funds
Firm Name of Fund Size Focus Status Pg
Growth/
3one4 Capital Continuum I 48.8 C Raising 41, 48
Expansion
Allianz X GmbH Allianz X GmbH 1,131.4 Seed/Early G Closed 20, 46
3,000 – Growth/
Boyu Capital Advisory Co Ltd Boyu Capital Fund IV LP C Raising 46
4,000 Expansion
Growth/
Capital 4 Development Partners Capital 4 Development Asia Fund 50 IR Raising 44, 51
Expansion
Growth/ 20, 34,
ClearVue Partners ClearVue Partners III LP 600 C Raising
Expansion 46-47
Enterprise Angels EA Fund 3 LP 1.3 – 4 Seed/Early C Raising 30, 47
Equity Venture Partners EVP Fund II 24.8 Seed/Early C Closed 30, 47
Hahn & Co Hahn & Company III LP 100 Buyout C Raising 42, 49
Growth/
Gaocheng Capital Gaocheng Fund I LP 100.3 C Raising 34. 47
Expansion
Intudo Ventures Intudo Ventures II LP 50 Seed/Early C Closed 43, 50
Growth/
Navegar GP Ltd Navegar Fund II LP 150 C Raising 20, 46
Expansion
Orient Hontai Capital Hontai Capital Fund I LP 300 Seed/Early C Raising 34. 47
PG Impact Investments AG PG Impact Investments I LP 210 Seed/Early EM Closed 44, 51
Recruit Strategic Partners Inc RSP Blockchain Fund Pte Ltd 25 Seed/Early G Closed 20, 46
(EM)= Emerging Markets IR = Intra-Regional C = Country G = Global All amounts in US$ m
Divestments
Firm Company Mode Listing Venue Pg
6 Dimensions Capital, Boyu Capital, CITIC Private
Equity Funds Management Co Ltd, GIC Pte Ltd,
CStone Pharmaceuticals IPO HKEX 35, 48
Hillhouse Capital Management, Sequoia Capital
China, Yunfeng Capital
Anacacia Capital RISsafety Pty Ltd Trade Sale Unlisted 30, 47
Bain Capital, GIC Special Investments Pte Ltd Genpact Ltd Public Market NYSE 41, 49
CMC Holdings Ltd Maoyan Entertainment IPO HKEX 35, 48
HITOWA Holdings Co
CVC Capital Partners Secondary Unlisted 42, 49
Ltd
China International
GIC Pte Ltd Public Market HKEX 21, 46
Capital Corporation Ltd
GIC Pte Ltd Reid & Taylor India Ltd Others Unlisted 21, 46
China International
GIC Pte Ltd Trade Sale HKEX 21, 46
Capital Corporation Ltd
Polaris Capital Group Ltd Hivic Co Ltd Trade Sale Unlisted 42, 49
Sequoia Capital China, Lightspeed China Partners,
Pinduoduo Inc Public Market NASDAQ 35, 48
Gaorong Capital, Advantech Capital
STIC Investments Innocean Worldwide Inc Trade Sale KRX 50

Investments
Firm Targets/Portfolios Deal Size Location Pg
6 Dimensions Capital, Polaris Partners Dewpoint Therapeutics 60 USA 44
Advantage Partners Elise Fashion Ltd N/A Vietnam 43, 50
Edelweiss Financial Services
Allianz Investment Management LLC 200 India 20, 46
Ltd
Alpha JWC Ventures LOGIVAN 5.5 Vietnam 43, 50
Xiamen Qinhuai Technology
Bain Capital Asia 146 China 34, 48
Co Ltd
Beacon Venture Capital Jitta Dot Com Co Ltd 6.5 Thailand 20, 46
Bertelsmann Asia Investments, Tencent Holdings Ltd, Zhidao Network Technology
120 China 21, 46
JD.com Inc Co Ltd
Boyu Capital, GIC Pte Ltd, Indus Capital Partners LLC CStone Pharmaceuticals 95 China 35
Breakthrough Energy Ventures, 1955 Capital Sustainable Bioproducts 33 USA 44, 51
Brookfield Asset Management, BGH Capital Healthscope Ltd 3,100 Australia 30, 47
Creador Ujjivan Financial Services Ltd 13.7 India 41, 49
DCM Ventures Union Tech Co Ltd 8.8 Japan 42, 49
Beijing Lianchuang Juxing
DCM Ventures, GenBridge Capital, Lighthouse Capital 50 China 34, 48
Catering Management Co Ltd
East Ventures, SMDV, Insignia Ventures Partners,
Agaeti Venture Capital, Pavilion Capital Holdings Pte Fore Coffee 8.5 Indonesia 43, 50
Ltd
Guangdong Mancando
Eastern Bell Venture Capital, Legend Capital Information Technology Co 25.2 China 35, 48
Ltd
Eight Roads Ventures, Anterra Capital Ashish Life Science Pvt Ltd 6 India 41, 48
Fenox Venture Capital, DG Incubation Inc Monstar Lab Inc 21.9 Japan 42, 49
Full Circle Venture Capital, Rampersand, Impact
Sendle 14.4 Australia 30, 47
Investment Group, Federation Asset Management
Future Fund, GGV Capital, New Enterprise Associates Gladly Software 50 USA 46
GGV Capital, Lenovo Capital and Incubator Group Vincross Inc 10 China 48
Global Brain Corp, D4V, TBS Innovation Partners,
Voicy Inc 6.3 Japan 42, 49
Dentsu Innovation Partners Inc
Global Brain Corp, Globis Capital Partners, JAFCO Co
Mirrativ 31.7 Japan 42, 49
Ltd, ITOCHU Technology Ventures, YJ Capital
Gobi Partners, Sonae IM, Rakuten Ventures, WI Harper
ViSenze Pte Ltd 20 Singapore 43, 50
Group, UOB Venture Management
Hillhouse Capital Management, IDG Capital, MSA Beijing Zhouji Technology Co
31 China 34, 48
Capital, Sky9 Capital Ltd
Hillhouse Capital Management, Sequoia Capital China,
Eastern Bell Venture Capital, Shunwei Capital Partners, Lalamove 300 Hong Kong 34, 48
MindWorks Ventures
Hillhouse Capital Management, Yingke Innovation
Shanghai HaiHe Pharmaceutical
Asset Management Co Ltd, HG Capital, BioTrack 146.6 China 35
Co Ltd
Capital
Hopu Investment Management, Bill & Melinda Gates
Lyndra Therapeutics Inc 55 USA 44
Foundation, Polaris Partners
Shinhan Financial Group Co
IMM Private Equity 668.2 South Korea 42, 49
Ltd

Investments
Firm Targets/Portfolios Deal Size Location Pg
INCJ Ltd Dynamic Map Platform Co Ltd 198.6 Japan 20, 46
J-Will Partners Co Ltd ND Software Co Ltd 272.9 Japan 42, 49
KB Investment, Korea Development Bank, DAYLI
Rokit Healthcare Inc 9.9 South Korea 49
Partners
Matrix Partners China, Maison Capital, Qiming Venture Shanghai NASN Automotive
59.4 China 48
Partners, GP Capital Electronics Co Ltd
MBK Partners GODIVA Chocolatier 1,000 Pan-Asia 44, 52
Morgan Stanley Real Estate Investing KSH Infra Pvt Ltd 49.3 India 45, 52
Morningside Venture Capital, HG Capital, Marathon Shukun (Beijing) Network
29.6 China 34, 48
Venture Partners, China Creation Ventures Technology Co Ltd
SAIF Partners, Matrix Partners India, Waterbridge
Ziploan 12.6 India 41, 49
Ventures, Whiteboard Capital
SBI Investment Co Ltd, SPARX Group Co Ltd, FFG
Cinnamon Inc 15 Japan 49
Venture Business Partners Co Ltd
Sequoia Capital China, Lilly Asia Ventures, LYFE
Capital, CMB International Capital Corp Ltd, GIC Pte Burning Rock Dx 125.8 China 35, 48
Ltd
Sequoia Capital India, AirTree Ventures, Susquehanna
International Group, Qualgro Partners Pte Ltd, Right 90 Seconds Pte Ltd 20 Singapore 43, 50
Click Capital
Beijing TuSimple Future
Sina Capital 95 China 21, 46
Technology Co Ltd
SMBC Venture Capital, Sansei Capital, Venture Labo
Innophys Co Ltd 7.3 Japan 42, 49
Investment
SoftBank Ventures Asia, Intel Capital, Viola Ventures Pliops 30 Israel 44, 51
SoftBank Vision Fund Nuro 940 USA 51
SoftBank Vision Fund, Cherubic Ventures, Susa
Flexport Inc 1,000 USA 44, 52
Ventures
SPARX Group Co Ltd, Mitsubishi UFJ Capital Co Ltd Kyoto Robotics Corp 7.3 Japan 49
Temasek Holdings (Pte) Ltd, ADV Partners Dr Agarwal's Eye Hospital Ltd 38.1 India 46
Temasek Holdings (Pte) Ltd, Lilly Asia Ventures Gracell Biotechnology Ltd 85 China 20, 46
The Blackstone Group Aadhar Housing Finance Ltd 378 India 41, 48
Manipal Education and Medical
The Blackstone Group 447.8 India 49
Group
Solara Active Pharma Sciences
TPG Growth 30 India 41, 49
Ltd
Shiheng (Shanghai) Technology
TPG Growth, SoftBank Ventures Asia 10 China 48
Services Co Ltd
Vertex Ventures Sunday Ins Ltd 10 Thailand 43, 50
Vertex Ventures, Openspace Ventures, AddVentures,
VinaCapital Ventures, FMO - Netherlands Validus Capital Pte Ltd 15.2 Singapore 43, 50
Development Finance Co
Vision Knight Capital, Cathay Capital Private Equity, Soocas (Shenzhen) Technology
29.7 China 48
Kinzon Capital, Orchid Asia Group Management Ltd Co Ltd
Warburg Pincus, Korean Teachers’ Credit Union NWP Retail 200 Indonesia 45, 52
All amounts in US$ m

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A Monthly Report on Direct Equity Investment in Asia REVIEW

www.asiape.com March 2019

The Price of Health

National Interest............ p.14

Goodbye to State Perks. p.17

SNAPSHOT: 2018 DATA ... p.22

Cascade of IPOs Funds / Investments /

National Interest Goodbye to State Perks p.31

New regulatory measures that Sovereign wealth and

Asia Private Equity Review Subscriptions and Enquiries: info@asiape.com

Case Study: Bankruptcy Funds / Investments /

Fund Management SOUTHEAST ASIA

Thriving in Taj............... p.38 Funds / Investments /

STREET TALK.................... p.47

EXCHANGE RATES.......... p.48

DEAL SUMMARY............... p.53

28th February, 2019

Snapshot - 2018 Data

Enjoy the current issue.

6 Asia Private Equity Review March 2019

China & India - Distributions in 2017 & 2018

2018 is an extraordinary year for China –

Fig. 1 Source: Asia Private Equity Review

The IPO Rush ( 2018)

• Coinciding with the commencement • But the aggregate amount realised

I t is an extraordinary year that

China and the US began to simmer

March 2019 Asia Private Equity Review7

Perching on Door to Realisation (Jul 2018 – Jun 2019)

Fig. 3 Source: Asia PE Index

Post-IPO Performance (Aug 2018 – Jun 2019)

By Company By Investment Positions

Fig. 4 Source: Asia PE Index

8 Asia Private Equity Review March 2019

Projected Cumulative Distribution (Aug 2018 Onward)

Even Monthly Share Disposal – 36-Month Period

Even Monthly Share Disposal – 60-Month Period

Fig. 5 Source: Asia PE Index

March 2019 Asia Private Equity Review9

Down Rounds in 2018’s IPOs

• While 2018 is characterised by the high number of IPOs, it also

NB: No. in ( ) denotes number of down Rounds

Fig. 6 Source: Asia PE Index

10 Asia Private Equity Review March 2019

Entry Value of Listed PE-backed Chinese Companies in 2018: Gain/Loss Position

Gaorang Capital, Morningside

Matrix Partners China, Orchid

IDG Capital, Legend Capital,

Boyu Capital Advisory, Hillhosue

Sasseur Real Estate

Engage Capital, Gaorong Capital,

Bain Capital, Keytone Ventures,

DCM Ventures, Hillhouse Capital

Wise Talent Matrix Partners China, Shenzhen

March 2019 Asia Private Equity Review11

IDG Capital, Matrix Partners

Cowin Venture Capital, GF Xinde

IDG capital, Lightspeed China

Primavera Capital Group, Warburg

C-Bridge Capital GP Ltd,

China Everbright Ltd HK$1.92 HK$0.95 HK$0.69 100%

111 Inc ClearVue Partners US$14.00 US$8.70 US$2.94 100%

China International Capital Corp,

6 Asia Private Equity Review March 2019

March 2019 Asia Private Equity Review7

8 Asia Private Equity Review March 2019

March 2019 Asia Private Equity Review9

10 Asia Private Equity Review March 2019

March 2019 Asia Private Equity Review11

12 Asia Private Equity Review March 2019

March 2019 Asia Private Equity Review13

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March 2019 Asia Private Equity Review15

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March 2019 Asia Private Equity Review17

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March 2019 Asia Private Equity Review19

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March 2019 Asia Private Equity Review21

Investments : US$166.4 bn, an increase of 26.9%, the amount is a record high

22 Asia Private Equity Review March 2019

March 2019 Asia Private Equity Review23