Regional private equity firms are increasingly selling their Southeast Asian portfolios back to the original owners amid weak exit conditions. Our most-read story in August dives deep into the trend of promoter buybacks becoming more common in the region where family-owned companies dominate the overall business activities.
The trend comes into focus especially as fund managers are nearing their fund life and facing growing investor pressure to return locked-up capital.
Continuing on the tepid exit landscape, we also traced the development of how GPs are coming up with innovative structures to generate liquidity and meet return expectations for their investors.
The August edition of top stories also included the rebound of PE bets in the education space and an analytical take on EQT’s planned acquisition of PropertyGuru, a deal seen offering a premium to the latter’s PE sponsors.
We also accessed regulatory filings to bring you earnings analysis of Stockbit and Oatside alongside funding into Growsari.
From India, the most-read story in the month was about Neo Asset Management being in talks to buy a few of Peak XV’s portfolio firms.
If you missed these stories, here is a curated list of trending scoops and analytical takes from August 2024.
Stories from SE Asia
Private equity turns to families for SE Asia assets amid tough exit market
The lacklustre market for IPOs and tepid M&A activity is prompting fund managers to opt for the less preferred route of share buybacks by promoters.
GPs come up with creative solutions amid bleak exit environment in SE Asia
With the urge to deliver distributions to LPs, asset managers in the region have launched more innovative structures that were not widely used before to bridge the valuation and financing gap.
PE bets rebound in Asia’s private education as pandemic memories fade
But even as the demand for online learning has dramatically waned, edtech still can survive as a supplement to aid teachers and students in K-12 schools, higher education and vocational training institutions.
The LP View: Temasek sees potential in GP-led secondaries
“Continuation vehicles offer opportunities to gain exposure to high-quality assets as GPs retain assets that need longer to realise value,” said Alpin Mehta, Head, Real Estate; and Deputy Head, Private Equity Fund Investments at Temasek.
EQT’s planned PropertyGuru acquisition may be a bid to curb further valuation drop
The acquisition of NYSE-listed PropertyGuru by EQT was billed as a move that would offer a premium to its private equity sponsors TPG and KKR.
Indonesia’s startup story faces turbulent times amid multiple headwinds
Confidence in whether Indonesia, the largest consumer market in Southeast Asia, can truly deliver on its promise is in doubt.
KKR-backed Taylor’s Education said to be eyeing Vietnam’s Koala House
With the COVID-19 impact fully subsumed, Vietnam has witnessed a resurgence in interest in brick-and-mortar education assets.
Intudo Ventures said to be fundraising, Monk’s Hill tests the market for next fund
The firms are among the few Southeast Asian early-stage VCs that have closed at least three vehicles. Several VCs with similar mandates still deploy from their first and second funds.
What’s next for SE Asia’s unicorn listings as tech firms face post-IPO blues?
With several unicorns still unlisted and hundreds of companies in their growth stage, Southeast Asia has a robust pipeline of potential IPOs.
KKR-backed PH B2B e-commerce platform GrowSari secures $5m
Growsari raised the funding from Oppenheimer Generations, the family office of former De Beers chairman Nicky Oppenheimer.
Temasek-backed Oatside’s losses more than halved in 2023
Fuelled by its expansion to new markets, Oatside’s revenue climbed to S$53.8 million in 2023 from S$17.9 million in the previous fiscal year.
GIC-backed Indonesian investing platform Stockbit’s losses surged 90% in 2022
Stockbit made sizeable investments and allocated significant resources to building system and technological capabilities during the year.
Stories from Greater China
VC funding correction nears end as fundamentals improve: AppWorks
AppWorks Chairman & Partner Jamie Lin stated that founders have made significant adjustments to cope with the prolonged funding downturn.
The LP View: HKUST seeks to back three GPs in first tranche of investment
The launch of HKUST’s fund comes when HK public universities are increasingly setting up VC funds to back startups founded by their students, staff, and alumni.
Chinese deep tech VCs seek to tap niches in Gen AI despite fund crunch
However, riding the AI wave could be bumpy, as the AI chip shortage and rising geopolitical tensions continue to weigh on the industry.
Stories from India
Neo Asset Management looking to buy stakes in few Peak XV portfolio cos
If talks fructify, Neo Asset Management could land up acquiring stakes in at least four portfolio companies of Peak XV, which include Purplle, HealthKart, M
Foreign funds line up dedicated India vehicles amid global turmoil
PE and VC firms that are currently in the queue to launch their debut India-dedicated vehicles include L Catterton Asia, Affirma Capital, and Tribe Capital, among others.
Investors bullish on continuation funds amid tough exit market
Though the market for these funds is still nascent, the trend is expected to gain momentum given that the economic slowdown has made traditional exit routes more challenging.
