Notwithstanding the bleak landscape, some private equity majors in SE Asia have been busy lining up exit strategies for some of the older investments in their portfolios.
Even as fund managers are exploring multiple options as part of their exit strategies, LPs in Asia are still less inclined towards unconventional routes.
Our top stories in May include Falcon House’s exit from its decade-long investment in Indonesian hospitality firm Potato Head; Warburg Pincus and GIC weighing exits from NWP Property and Cinema XXI respectively; and Affinity Partners’s sale process of Malaysia’s Island Hospital.
Our most-read story in May was about the blockbuster deal of a CVC-led group buying a majority stake in Lippo-backed Siloam Hospitals for around $1.6 billion.
We also brought you two stories on SE Asia’s coffee scene, which is seeing heightened competition as Chinese chains take on local brands. Interestingly, Indonesian coffee unicorn Kopi Kenangan has entered the mass market with its sub-$1 offering.
The LP View columns in May featured Adams Street Partners and also presented an analytical take on how asset allocators are viewing the crypto fund space.
From India, do check out our exclusives on fundraising talks brewing at startup unicorn Mohalla Tech and IT firm QBurst.
If you missed these stories, here is a curated list of trending scoops and analytical takes from May 2024:
Top stories of May 2024
CVC-led group to buy 65% stake in Lippo-backed hospital chain Siloam for around $1.6b
The transaction will also see the entry of two marquee investors – GIC and Temasek – to the cap table.
SE Asia’s coffee war sees Chinese chains take on native brands
Getting into SE Asia is one thing but building a thriving F&B business is another as the region is a collection of diverse markets that need different approaches.
Falcon House exits Indonesian hospitality firm Potato Head Family
It is not known if the PE firm made any returns from its decade-long investment in Potato Head.
Indonesian coffee unicorn Kopi Kenangan serves up new brand for mass market
With this, Kopi Kenangan has officially joined other local coffee chains offering a cup of coffee for less than a dollar to woo a larger pool of customers.
Warburg Pincus weighs partial exit from Indonesian real estate platform NWP Property
NWP Property is said to be looking at a fundraising exercise that will likely include both primary and secondary transactions. Warburg, through Adventure Holdings, is the largest and majority shareholder of NWP Retail with a 53% stake.
Jungle Ventures looking to dig into SE Asia’s F&B sector with Yay! Group investment
If the deal goes through, it will mark Jungle Ventures’s second F&B investment this year after it pumped an additional $20 million into Indian QSR company Walko Food in February.
Malaysia-based PE firm Navis likely to lead funding in CarDekho’s SE Asian entity
CarDekho turned a unicorn in 2021 by raising $250 million in a mix of equity and debt led by LeapFrog, valuing the startup at $1.2 billion.
Sale process of Malaysia’s Island Hospital by PE firm Affinity draws investors
Affinity had bought the hospital for an undisclosed amount in 2015. It had tried to sell the asset in 2020 but the plans were stalled following the COVID-19 pandemic.
More GPs opt for alternative exit routes but LPs face a steep learning curve
LPs in Asia are less accustomed to unconventional exit paths such as GP-led secondaries, NAV financing, GP stakes, or dividend recapitalisation than their peers in the West.
Singapore’s GIC said to be weighing an exit from Indonesia-listed Cinema XXI
GIC invested $260 million in Cinema XXI back in December 2016. GIC now owns a 22.5% stake in Cinema XXI, making it the second largest investor in the movie chain.
Singapore’s EDBI in talks to invest in Indian startup unicorn Mohalla Tech
The startup, which entered the coveted unicorn club in 2021, is eyeing a total corpus of over $60 million in the current round as it carves out its expansion plans in a market that was once dominated by TikTok in India.
PE giant BPEA EQT in advanced talks to invest in Indian IT firm QBurst
This is yet another transaction that signals investors’ growing interest in Indian technology companies that are building products for the world.
LongeVC targets $250m for Fund II, bets on opportunities in Asia’s longevity tech growth
LongeVC – whose co-founder Garri Zmudze was an angel investor in Hong Kong-based Insilico Medicine, an IPO-ready, AI-powered drug developer – is starting the firm’s second fund and planning to hold the first close at $70-100 million within this year.
The LP View: Crypto VCs staging comeback despite challenges, say LPs
The comeback of crypto VCs brings back the same allure of outsized returns that once charmed many LPs. However, digital asset managers are also faced with new challenges, as the VC scene has become more consolidated than before.
The LP View: Southeast Asia can absorb more capital but GPs’ track record matters
Lack of proven track record amongst fund managers has historically been a problem but that is soon changing, prompting LPs to look at the region more seriously.