Opinion
AVCJ: A new format
After 22 years, AVCJ's weekly PDF product will be replaced by an email digest. It reflects an ongoing desire to deliver a better user experience across all our platforms
Buyout funds: Growth paradigm
Most traditional large-cap buyout funds have become hybrids in Asia, taking minority stakes in businesses to generate deal flow in certain markets and to harness regional growth trends
Myanmar: Coup confusion
Myanmar's isolationism is likely to be harder to maintain this time should the military seek a return to its old ways. Investors are watching and waiting, but should they also be considering the ESG implications?
Ethics in AI: Slippery slope
Concerns around artificial intelligence technology have extended from unauthorized surveillance to include healthcare and education. When does the ethical dilemma become an ESG sticking point for investors?
Sideline SPACs: Competing priorities?
Ties between private equity firms and special purpose acquisition companies are not uniform – some are direct relationships, while others involve certain individuals. But proliferation is likely to attract more LP scrutiny
Hong Kong regulation: Carry on
The proposal to place a 0% tax on carried interest has been welcomed in Hong Kong, but PE industry participants are quietly looking to Hong Kong Monetary Authority to ensure balanced execution of the policy
Five trends for 2021
AVCJ looks at how its 2020 predictions turned out and identifies some key themes for the year ahead
Investor relations: Talk isn't cheap
The enforced adoption of virtual communications points to longer-term changes in investor relations, from annual general meetings to informal catch-ups. GPs must find ways to stand out
Asian fund-of-funds: Local linchpins
The Asian fund-of-funds community has shrunk considerably over the last 10 years as a result of M&A, withdrawals and repositioning. How do the survivors, from Axiom Asia and Asia Alternatives down, deliver value to LPs?
Asia buyout returns: Spoilt for choice?
Fund managers believe the ability to finance and refinance deals on attractive terms, as well as a wider array of paths to liquidity, will underpin performance in Asia
ESG: Selling sustainability
As demonstrated by CVC Capital Partners' experience with Softex Indonesia, cost savings are a good starting point when trying to convince Asia founders to embrace sustainability initiatives
Asia e-sports: Pumping up in a timeout
A recent slew of deals targeting e-sports in Asia has coincided with the live events that generate most of the industry's revenue going on hiatus. Investors appear happy to play the long game
Asia fundraising: Be prepared
LPs are becoming more flexible in their due diligence, in certain cases backing managers where there has been no face-to-face interaction, but COVID-19 has underlined the importance of pre-fundraise engagement
Southeast Asia VC: Knowledge transfers
When venture capital firms move into Southeast Asia, they often use existing operations in China or India as a launching pad. Different lessons can be learned from these two markets
US LPs in China: Willing buyers?
There is no clear evidence of US LPs passing on China funds as a result of tensions between the two countries, but their current or future reluctance could be shrouded in various obfuscations
Infrastructure: Patient capital
Australia's IFM Investors has a plan to get long-term equity partners more involved in public-private partnerships. It means persuading superannuation funds to up their risk appetite
India fundraising: Speed matters
Kedaara Capital's fundraise is expected to move quickly by Indian private equity standards, but the GP will need to answer the same questions as its peers on timing and re-ups
China IPOs: Onshore attraction
The valuations available on China's booming Star Market are prompting US dollar managers to consider restructuring companies for onshore listings. How long will the fervor last?
SPACs: Flavor of the month
Special purpose acquisition companies (SPACs) are gaining popularity among private equity investors in Asia. While these structures have various attractive qualities, they aren't for everyone
Australia: Retail realities
Not all bankruptcies can be blamed solely on COVID-19; neither is private equity ownership necessarily bad news for retailers. As recent experiences in Australia demonstrate, evolution and execution are key
Software vs non-software: Digital distractions
Venture capital investors gravitate towards software start-ups, attracted by dynamic founding teams and readily scalable propositions. But should they be devoting more time and resources to hardware and biotech?
China healthcare IPOs: Good prognosis?
There has been a steady stream of China healthcare IPOs - most of them drug developers - on the domestic, Hong Kong and US bourses in recent months. They might be benefiting from a COVID-19 tailwind but it won't be permanent
Chinese IPOs: One less option
Will Chinese companies listed in the US become the latest casualties of tensions between the two countries? It could lead to a narrowing in IPO exit options for PE and VC investors
Foreign investment restrictions: Looking inward
China is the implied threat as governments look to protect vulnerable domestic companies from foreign corporate raiders. On balance, PE investors are unlikely to benefit from moves towards de-globalization
