Join the Asia PE-VC Summit 2024 on Sept 17-18 in Singapore to know how asset allocators and fund managers are reading the Asia growth story and investment potential.
The ninth edition of our annual flagship summit is bigger in scale and scope. We have gathered 120+ industry-leading investors well-versed with operating in diverse markets of Asia. Our agenda has 30+ curated sessions featuring industry stalwarts who will share their perspectives on the fastest-growing investment themes and trends unfolding in the region.
The summit this year has four tracks titled Private Equity & Investment Summit; Venture Capital & Founders Summit; Limited Partners Summit and, Climate Tech and ESG Summit. From energy transition to deep tech and electric mobility, the summit will cover the opportunities and challenges in some of the most sought-after sectors for private capital investors.
Besides, it will look at investment trends such as private credit, secondaries, blended finance, and more. The two-day summit will also see 1,300+ attendees who constitute the senior leadership of the investment ecosystem in the region. We hope to see you in Singapore next week.
Scroll down for the headlines that dominated the week.
LP-GP news
Investment firm Ares Management Corp is in advanced talks to acquire GLP Capital Partners’ operations outside China, Bloomberg News reported. The deal might include an upfront payment of roughly $3.5 billion and the total value could rise to around $5 billion over time if certain targets are hit, the report said.
Excelsior Capital Vietnam Partners, a Vietnam-focused private equity fund managed by Excelsior Capital Asia, is seeking to raise $200 million for its second vehicle, according to an International Finance Corporation (IFC) disclosure. World Bank member IFC is considering an equity investment of $15 million in the latest fund of the Vietnam-focused investor.
Singapore-based Foundation Private Equity, a provider of bespoke secondary solutions across Asia, is looking to double down on India, with its investments in the country outperforming the rest of its portfolio.
As prestigious universities in China increasingly evince interest in providing patient capital to the venture world, many more students stand to gain. However, it is not direct investments alone. They are also looking to back venture funds.
Swedish investment house EQT said it has agreed to buy a controlling stake in GeBBs Healthcare Solutions, a healthcare business process outsourcing company, from private equity firm ChrysCapital.
India-based Arnya Realestates Fund Advisors, an alternative investment management firm founded by former Motilal Oswal executive Sharad Mittal, has hit the first close of its maiden debt fund at Rs 375 crore ($45 million).
Singapore-based Dymon Asia Private Equity is understood to be in talks to invest up to $40 million in Indonesia’s Playtopia amid rising investor interest in Southeast Asia’s playground industry. Meanwhile, it has invested in Thai education firm TUSK Asia, the holding company for Arthit Ourairat Institute (AOI) schools in Thailand.
Consumer-focused private equity firm L Catterton has acquired a controlling stake in Latvian bath and body care firm Stenders from investors based in China. The Latvian company was bought by two Chinese businessmen and Beijing-based state-owned investment bank CICC in 2018.
Malaysia-based coffee chain ZUS Coffee has raised 250 million Malaysian ringgit (about $57 million) in a private equity round backed by a consortium of investors.
Canadian pension fund OMERS is set to increase its stake in Interise Trust, one of India’s largest infrastructure investment trusts (InvITs) in the roads sector, by acquiring shares from Allianz Capital Partners.
Kamet Capital, a Singapore-based multi-family investment firm, has reported that exits from several of its investments since 2018 have generated returns of up to 8x, with a 70% exit rate.
Playbook Partners, a growth capital firm founded by a former Reliance Jio executive, said it has marked the first close of its maiden fund at $130 million.
SE Asia-focused private equity firm AIGF Advisors Pte has made a significant investment in Berjaya CKE International
Sdn. Bhd, a Malaysian commercial kitchen equipment provider, according to an announcement. Transaction details were not disclosed.
Private equity firm Hillhouse Investment, Singapore’s wealth fund GIC and state investor Temasek are said to be in talks to invest in Chinese appliance maker Midea’s Hong Kong initial public offering.
Kuala Lumpur-headquartered private equity firm Creador has acquired a 40% stake in Indonesian consumer foods brand PT Adilmart from its Bursa Malaysia-listed parent company CCK Consolidated Berhad.
Vietnam-based private equity firm Mekong Capital has received a proof-of-concept grant from global blended finance network Convergence for its $200-million climate impact fund.
Deal updates
India’s adtech firm InMobi has secured $100 million in debt financing from MARS Growth Capital, a joint venture between MUFG and Liquidity Group, to help further its AI development plans.
IFC is considering an investment of up to $30 million in the fifth fund of Singapore-based venture capital firm Jungle Ventures, according to a disclosure. IFC is also weighing a $20-million co-investment envelope to invest alongside the fund.
IFC is considering an equity investment of up to $10 million in the latest early-stage venture capital fund managed by Indian fund manager Alkemi Growth Capital LLP.
Singapore’s Genesis Alternative Ventures has closed its second Southeast Asia-focused venture debt fund securing commitments of $125 million, which is short of its $150-million target.
Singapore-based digital assets exchange SDAX has announced the close of a $50-million Series B2 equity funding round led by Oman-based Muscat Precious Metals Refining Company, which refines, mints and trades precious metals like gold, silver, and platinum.
Malaysian home improvement retailer Mr DIY is reportedly looking to list its Indonesian unit in Jakarta late this year or early 2025. According to a Bloomberg report, the retailer is already working with banks for an initial public offering (IPO) that could raise as much as $300 million.
Chinese home appliance maker Midea Group launched a share offering of about HK$26.97 billion ($3.46 billion) in Hong Kong, according to its filings, in the city’s largest listing in more than three years.
Canadian retailer Alimentation Couche–Tard said it is willing to engage in confidential discussions with 7-Eleven operator Seven & i Holdings and is keen on still pursuing an acquisition.
Malaysia’s 99 Speed Mart Retail jumped as much as 16.4% in its market debut after the country’s top mini-market chain retailer raised 2.36 billion ringgit ($542.8 million) in the biggest domestic listing in seven years.
Singapore-based fund manager Clime Capital has announced an investment of up to $10 million in Upgrade Energy Philippines (UGEP). The investment is aimed at supporting UGEP in expediting the deployment of solar energy infrastructure in the country.
Indian electric two-wheeler maker Ather Energy has filed for a 45 billion rupee ($536.2 million) IPO at a valuation of $2.5 billion, seeking to tap a red-hot stock market weeks after bigger rival Ola Electric went public.
Southeast Asia fintech player Funding Societies, known as Modalku in Indonesia, has secured a strategic investment from Malaysian lender Maybank. While the financial details of the transaction were not disclosed, Maybank has made an equity investment in Modalku.
LG Sinar Mas, the joint venture company between Indonesian conglomerate Sinar Mas Group and South Korea’s LG CNS, is setting up a $300-million new data centre in South Jakarta.
Arta Finance, a US-registered investment advisor that describes itself as a digital family office, has announced securing a strategic investment from EDBI, the corporate venture capital arm of the Singapore Economic Development Board.
AI heavyweight OpenAI is reportedly in talks to raise funds at a valuation of $150 billion, a move that would fortify its status as one of the biggest startups in the world.
Paymob, an Egypt-based financial services enabler for MENA, has raised an additional $22 million in its Series B funding round. EBRD Venture Capital led the funding with participation from Endeavor Catalyst and existing investors.
Singapore-based XenCapital, the lending arm of Indonesian fintech unicorn Xendit, has secured a $50-million credit facility from alternative lender Helicap.
Wealth management platform Centricity has raised $20 million in its seed funding round led by venture capital firm Lightspeed.
US development bank International Development Finance Corporation has committed to invest $70 million in India’s private sectors to advance the country’s health systems and affordable housing and expand support for small businesses.
Analysis
The acquisition drama between Nasdaq-listed MoneyHero and rival MoneySmart unfolded swiftly last month, with an offer and rejection within 24 hours. However, underlying tensions between the two companies had been simmering beneath the surface for much longer.
Gojek is bowing out of Vietnam as it plans to focus on geographies with higher growth potential, which will ultimately help its parent company GoTo meet its 2024 adjusted EBITDA breakeven target.
Singapore-based edtech startup Cialfo and its subsidiaries reported lower losses and higher revenue in 2023 on the back of higher interest income and trimmed expenses, among others, regulatory filings show.
Malaysian sovereign wealth fund Khazanah Nasional expects its investment portfolio in 2024 to surpass last year’s time-weighted rate of return of 5.7% on strong performances from assets in Malaysia, the US and the European Union.
Private equity and venture capital investors in China, struggling to exit their investments amid a slump in the IPO market, are facing additional hurdles to recovering their capital as the founders of portfolio companies that fail to list on time renege on compensation deals.
Six crypto ETFs made their market debuts in Hong Kong at the end of April, a first for Asia after the US approved them in January. All have posted negative returns as of the end of August. Recent volatility in digital currencies, against the backdrop of their fragile price recovery this year, underscored the funds’ poor performance.
Private capital industry leaders from Do Ventures, Golden Gate Ventures, and Mekong Capital, among others, have come together to form the Vietnam Private Capital Agency, which aims to channel $35 billion into private investments in the country by 2035.
The prospects for food technology solving world hunger have become more uncertain due to a sharp decline in investments in startups for cultivated meat and other alternative forms of protein. Global investments in food and agricultural technology startups fell 57% from its peak year in 2021, according to AgFunder.
Eye care, which has emerged as the most promising segment for single-specialty healthcare chains in India, appears ripe for consolidation as private equity-backed large hospital chains look to gobble up smaller peers.
Semiconductor startups in Greater continued to top the charts in terms of both deal value and volume as they garnered around $1.5 billion across 98 deals in Q2 2024, according to the Greater China Deal Review: Q2 2024 report.
As disposable incomes rise, driven by a booming middle class and rapid urbanisation, a new coffee culture is brewing in India — fuelled by Instagrammable latte art, trendy cafes, and global coffee waves that resonate more with a young, aspirational nation.
Akulaku-backed Indonesian digital lender PT Bank Neo Commerce Tbk is betting big on optimising its loan disbursement process as it targets profitability in 2024. By improving loan disbursement, Bank Neo Commerce is expected to achieve better profit margins which will in turn positively impact its profitability, CEO Eri Budiono said.
And the numbers that count…
Our monthly deal reviews from two of Asia’s biggest regions were a picture in contrast in August. While a surge in megadeals propelled investment activity in Greater China, a complete whitewash of such deals pulled dealmaking to a four-month low in Southeast Asia, showed proprietary data compiled by DealStreetAsia.
Startup fundraising in Greater China doubled from the previous month and also grew a third from year-ago levels as investors pumped $6.8 billion into privately-owned firms in mainland China, Hong Kong, Macau, and Taiwan last month, compared with $2.9 billion in July.
Startups in Southeast Asia, meanwhile, raised just $314 million in equity funding last month, down 38% from July, according to the data. The number of deals also dipped by 13% to 46 from a month earlier.
This week, DealStreetAsia also released the Private Equity in SE Asia: H1 2024 Review. The report revealed that no PE fund which has the majority of its capital allocated to the region secured a final close in January-June 2024.
