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Cheers, Big Brother Forces with US-Based FLAG Capital South Korea, Asia’S Government-Driven Venture Capital Success Story Page 6 Page 10

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Cheers, Big Brother Forces with US-Based FLAG Capital South Korea, Asia’S Government-Driven Venture Capital Success Story Page 6 Page 10 AVCJ Private Equity & Venture Forum 2012 Hong Kong 13 - 16 November 2012 ASIAN VENTURE CAPITAL JOURNAL www.avcjforum.com Asia’s Private Equity News Source avcj.com October 30 2012 Volume 25 Number 41 Ed itor’s VieWPoint Global buyout firms are seeking to raise ever PRIVATE EQUITY ASIA larger Asia funds. But how much is too much? Page 3 neWs Blackstone, CapitaLand, Carlyle, Cathay Fortune, CHAMP PE, CRCI, M&A ASIA CPPIB, CVC, DCM, KKR, Lightspeed, Matrix, MBK, Mumbai Angels, Nomura, RMB Capital, SingTel Innov8, Triton Page 4 Deal of the Week Asian fund-of-funds Squadron Capital joins Cheers, big brother forces with US-based FLAG Capital South Korea, Asia’s government-driven venture capital success story Page 6 Page 10 Deal of the Week Profile Friday night lights Funder of founders CHAMP PE in Gerard Lighting take-private Page 10 Bruce Gibney on PayPal, Facebook, et al Page 11 Private Equity & Venture Forum India 2012 6-7 December • Taj Lands End, Mumbai 13th Annual GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY avcjindia.com Will India’s PE market rebound? Register now and find out! 45+ leading speakers include: Ashishkumar Chauhan KEYNOTE Navin M Baby Interim Chief Executive Officer Vice President, Investments BOMBAY STOCK EXCHANGE KHALID ALI ALTURKI & SONS CO Mintoo Bhandari NEW Nainesh Jaisingh Managing Partner Managing Director and AION CAPITAL PARTNERS, Global Co-Head APOLLO MANAGEMENT STANDARD CHARTERED PRIVAE EQUITY Brijesh Jeevarathnam NEW Gulpreet Kohli Managing Director Managing Director COMMONFUND CAPITAL CHRYSCAPITAL INVESTMENT ADVISORS PVT LTD 13-14 September Sanjay Nayar 2012 Vikram Raju Managing Director and Chief Regional Lead, Private Equity and Executive Officer Investment Funds, INTERNATIONAL KKR INDIA FINANCE CORPORATION (IFC) Plus Amol Jain, Managing Director, TPG CAPITAL INDIA Lynn Nguyen, Managing Director, Funds Portfolio / IFD, OVERSEAS PRIVATE INVESTMENT CORPORATION (OPIC) Visit avcjindia.com for the full programme and speaker faculty. Register now at www.avcjindia.com Contact us Registration: Anil Nathani T: +852 3411 4938 E: [email protected] Sponsorship: Darryl Mag T: +852 3411 4919 E: [email protected] Asia Series Partner Partners aureos capital Cocktail Reception Host Knowledge Partners Showcase Partners avcjindia.com Ed itor’s VieWPoint [email protected] ASIAN VENTURE CAPITAL JOURNAL Managing Editor Tim Burroughs (852) 3411 4909 Senior Editor Brian McLeod (1) 604 215 1416 PRIVATEAssociate EQUITY EditorASIA Susannah Birkwood (852) 3411 4908 Staff Writer How much is too Alvina Yuen (852) 3411 4907 Andrew Woodman (852) 3411 4852 Creative Director M&A ASIA Dicky Tang Designers Catherine Chau, Edith Leung, Mansfield Hor, Tony Chow much? Senior Research Manager Helen Lee Research Manager Alfred Lam Research Associates Kaho Mak, Jason Chong KKR Had Received commitmeNts of alone could rise by more than 40% on the Circulation Manager $6.2 billion for its 11th North American fund previous vintage, so where will the extra go? Sally Yip as of the end of September. The vehicle, which It could be argued that, as a result of foreign Circulation Administrator Prudence Lau entered the market in early 2011, has attracted exchange rate fluctuations and economic about $700 million from LPs in the last six months development, the extra isn’t as much as it might Senior Manager, Delegate Sales Anil Nathani and questions are being asked as to if and how seem to be. Emerging markets currencies have soon the $8 billion target can be reached. By appreciated against the US dollar while potential Senior Marketing Manager Stacey Cross contrast, the private equity firm’s second Asia target companies have grown over the last five Marketing Manager fund, launched earlier this year, is by most years so the equity check required for a buyout Rebecca Yuen accounts sprinting its way towards $6 billion. is larger. But Asia has also evolved in competitive Director, Business Development This says a lot about LPs’ current preferences. terms. Several of regional and country-specific Darryl Mag US buyout strategies are being reconsidered and, private equity firms have also achieved greater Manager, Business Development for some, the sweet spot has moved down to scale in recent years and can at least challenge Samuel Lau funds with a corpus of $500 million to $1.5 billion, the buyout firms towards the lower end of their Sales Coordinator Debbie Koo ideally with expertise in one or two distinct areas. typical transaction scale. Yet most North American LPs are underweight In this respect, the number of offices is Conference Managers Jonathon Cohen, Zachary Reff, Sarah Doyle on emerging markets and still see a global brand important. An indigenous Asian firm could Conference Administrator name and a pan-regional approach as the best always claim that its local knowledge and Amelie Poon Conference Coordinator way to boost their Asian exposure. network of contacts stretched further than a firm Fiona Keung, Jovial Chung The idea that KKR’s Asian fund might come trying to cover the entire region as just one piece Publisher & General Manager within touching distance of its flagship North in a global network. As such the global buyout Allen Lee American vehicle says everything about Asia’s firms have recruited aggressively to create local Managing Director rising private equity profile. It also explains why teams within Asia and thereby wipe out any Jonathon Whiteley global firms devote so many resources and actual or perceived disadvantages. Chairman Emeritus attention to this part of the world. These efforts must bear fruit. In order to Dan Schwartz With the opening of its Singapore base last deploy $4 billion across a five-year period, a week, Asia now accounts for half of the 14 private private equity firm requires: one or two large i ncisive Media equity offices KKR has globally. For The Carlyle buyouts in each of the more mature markets of 20th Floor, Group, it is nine out of 29; for TPG Capital, eight Australia, Japan and South Korea; significant deal Tower 2, Admiralty Centre 18 Harcourt Road, out of 17; for Bain Capital, four out of eight; for volume, including at least one larger transaction, Admiralty, Hong Kong CVC Capital Partners, eight out of 21; for Warburg out of Southeast Asia; continued success in T. (852) 3411-4900 F. (852) 3411-4999 Pincus, four out of nine; and for The Blackstone China, hopefully aligned with increasing deal E. [email protected] Group, seven out of 16, although Singapore, sizes; and India to deliver on its promise. URL. avcj.com currently classified as base for real estate Look back at the past five years and not all of Beijing representative office Room 1805, Building 10, operations, is expected to include private equity these sub-regions have performed as one might Jianwai SOHO, 39 East 3rd-Ring Road, in due course. have hoped. The advantage of a pan-Asian fund Chaoyang District, Beijing 100 022, China In addition to KKR’s $6 billion fund, which is that it can respond to this by shifting its focus T. (86) 10-5869-6205 will be up to 50% larger than its predecessor, between countries, but a larger overall capital F. (86) 10-5869-7461 E. [email protected] Carlyle is said to be seeking $3.5 billion for its pool means more of these markets must work fourth latest Asian fund, up from $2.55 billion for more of the time. The Publisher reserves all rights herein. Reproduction in whole or in part is permitted only with the written consent of its third, while TPG is targeting $4-5 billion for its AVCJ Group Limited. ISSN 1817-1648 Copyright © 2012 sixth regional vehicle, up from $4.25 billion for its fifth. Having raised $1 billion for its first Asian fund, Bain closed its second earlier this year at Tim Burroughs $2.3 billion. Managing Editor The pool of capital among these four firms Asian Venture Capital Journal Number 41 | Volume 25 | October 30 2012 | avcj.com 3 neWs India’s Rain buys Triton- in China. It has a corpus of S$264 million ($215 ASIA PACIFIC million). CapitaLand China Value Housing Fund owned Rütgers (CCVHF) has a lifespan of five years. It has already King & Wood Mallesons Indian industrial group Rain Commodities has made seed investments in two value housing agreed to buy Rütgers, a German chemicals projects: The Rivervale in Guangzhou and The appoints head of PE producer, from Northern Europe-focused private Floravale in Shanghai. King & Wood Mallesons has appointed Mark equity firm Triton. With an enterprise value of McNamara as head of private equity, effective EUR702 million ($918 million), the deal is by some Discovery Metals takeover November 6. He previously occupied the same distance the largest ever acquisition in Germany role at Baker & McKenzie. McNamara will lead a by an Indian company. bid turns hostile team of around 60 partners and lawyers. Cathay Fortune Corporation (CFC), the PE firm founded by Chinese billionaire Yong Yu, has Clifford Chance promotes made a direct approach to Discovery Metals shareholders after the company’s board funds lawyer rebuffed its A$830m ($856m) takeover bid. CF Clifford Chance has named Mark Shipman as the Investments, 75% owned by Yu’s CFC and 25% new head of its Asia Pacific corporate practice, by the China-African Development Fund, had replacing Roger Denny, who is stepping down offered A$1.70 a share in cash for the portion of after 10 years. Shipman will continue to lead the the firm it doesn’t already own. The Discovery firm’s global funds and investment management board dismissed the offer as inadequate. practice, while Denny will remain head of regional M&A. CRCI sells Grant Achieve Founded in 1849, Rütgers is Europe’s leading producer of coal tar chemicals.
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