Asia’s News Source avcj.com December 01 2015 Volume 28 Number 45

EDITOR’S VIEWPOINT Southeast Asia: A shallow PE fundraising market Page 3

NEWS Bain, Carlyle, Cathay, EMR, Hastings, Highlight, Mitsui, Northstar, NSSF, RRJ, Sequoia, SoftBank, TPG, Warburg Pincus Page 4

FOCUS Transparency, timing of entry are key to cracking venture secondaries Page 11

DEAL OF THE WEEK Partners Group to back Aiyingshi’s cross-border acquisition initiative Page 12 Top of the world? AVCJ RESEARCH VC firms seek additional capital to reach into the growth stages Page 7 Data f ile Page 15

DEAL OF THE WEEK PROFILE

Connected classes Cross-border angel IFC, Everstone support digital education Page 12 Huoy-Ming Yeh’s China-US VC adventure Page 14 Anything is possible if you work with the right partner

Unlocking liquidity for private equity investors www.collercapital.com London, New York, EDITOR’S VIEWPOINT [email protected]

Managing Editor Tim Burroughs (852) 3411 4909 Associate Editor Growing pains Winnie Liu (852) 3411 4907 Staff Writer Holden Mann (852) 3411 4964 NORTHSTAR GROUP HAS RAISED $810 these represents a perfect sub-regional blend: Creative Director million for its fourth fund, but getting there Navis on occasion touches Australia and Hong Dicky Tang was no easy task. The GP’s primary market is Kong, while Northstar is highly concentrated on Designers Indonesia, and while Joko Widodo was elected Indonesia. Catherine Chau, Edith Leung, president last year on the back of renewed Two explanations spring to mind for the Mansfield Hor, Tony Chow optimism, he needs time to implement the relative paucity of GPs in the upper middle Senior Research Manager economic reforms upon which he will be judged. market, and both relate to the fact that Southeast Helen Lee Meanwhile, LPs were preoccupied by Asia remains a collection of markets rather than Research Associates uncertainty over the rupiah and the economy. an integrated zone. Herbert Yum, Jason Chong, Kaho Mak The situation is far removed from 2011 when First, any GP hoping to offer diversified Northstar raised $820 million for its third fund: geographical coverage needs an office – and Senior Marketing Manager Indonesia was Asia’s third emerging market of staff who speak the relevant languages – in Sally Yip Circulation Administrator scale, a potential counterpoint to China and almost every market. This is a natural barrier to Prudence Lau India, and LPs were falling over themselves to get entry. Only a GP of reasonable size would have Subscription Sales Executive an allocation. the resources to build this presence and that is in Jade Chan Northstar Equity Partners IV exceeded its turn dependent on the fee streams that emanate Manager, Delegate Sales approximate target of $800 million and fell short from larger funds. Pauline Chen of the hard cap of $1 billion. But it is still the Second, successful cross-border strategies Director, Business Development fifth-largest private equity fund ever raised for within Southeast Asia are not that widespread Darryl Mag Southeast Asia (Indonesia is expected to account among private equity firms. Rather than address for about 70% of the corpus, as was the case for every ASEAN market, many GPs tend to pick two Manager, Business Development Anil Nathani, Samuel Lau Fund III, with the rest deployed in markets across or three that are somewhat complementary. the sub-region). Hence, Southern Capital’s focus on Indonesia, Sales Coordinator Debbie Koo There are more GPs operating in Southeast Singapore and Malaysia, or Creador’s Asia than five years ago, but it is still a relatively concentration on Malaysia and Indonesia (in Conference Managers small group. Overall fundraising has topped $5 addition to India). Indeed, the firm has added Jonathon Cohen, Sarah Doyle, Conference Administrator billion on one occasion – 2007, inevitably – and the Philippines to the remit for its latest fund, but Amelie Poon surpassed $4 billion five times. An even smaller coverage is still in the very early stages. Conference Coordinator number of GPs have managed to raise funds of The ASEAN Economic Community, set to Fiona Keung, Jovial Chung significant size. AVCJ Research has records of launch at the end of this year, is intended to Publishing Director three funds of $1 billion or more (all raised by deliver a level of integration that can underpin Allen Lee Navis Capital) and nine in the $500 million to $1 broader investment theses, but there is big billion range (three of them raised by Northstar). difference between announcing an initiative and This presents a challenge for LPs that want successfully implementing it. exposure to Southeast Asia outside of the pan- Hong Kong Headquarter Unit 1401 Devon House, Taikoo Place regional vehicles. Institutional investors that for 979 King’s Road, Quarry Bay, reasons of scale can’t write checks smaller than Tim Burroughs Hong Kong T. (852) 3411-4900 $80 million might struggle to consider anyone Managing Editor F. (852) 3411-4999 E. [email protected] apart from Navis and Northstar. And neither of Asian Venture Capital Journal URL. avcj.com

Beijing Representative Office Fund size segments in SE Asia by capital raised No.1-2-(2)-B-A554, 1st Building, No.66 Nanshatan, Chaoyang District, , People’s Republic of China T. (86) 10 5869 6203 F. (86) 10 5869 6205 E. [email protected]

2004-2008 $500m and above Post-2008 vintage funds $100m-$500m vintage funds Below $100m The Publisher reserves all rights herein. Reproduction in whole or in part is permitted only with the written consent of AVCJ Group Limited. ISSN 1817-1648 Copyright © 2015

Source: AVCJ Research

Number 45 | Volume 28 | December 01 2015 | avcj.com 3 NEWS

GLOBAL PE consortium wins $7.5b Weibo leads $200m round TransGrid deal for video app maker Warburg Pincus closes A consortium featuring Hastings Fund Chinese social media platform Weibo Management, Caisse de dépôt et placement du Corporation has led a $200 million Series D round global fund at $12b Québec (CDPQ) and the Abu Dhabi Investment of funding for Yixia Technology, a Beijing-based Warburg Pincus has closed its latest global fund, Authority (ADIA) will pay A$10.26 billion ($7.5 mobile video app developer. Sequoia Capital and which will seek investments in companies at all billion) for the New South Wales government South Korea’s YG Entertainment also participated. stages of development, at the hard cap of $12 electricity transmission network. Hastings will The round values the company at more than $1 billion. It will focus on sectors such as energy, hold a 20.02% stake in TransGrid, with CDPQ billion. financial services, healthcare and consumer, taking 24.99% and ADIA 19.99%. The other industrial and business services, and technology, investors are the Kuwait Investment Authority HNA invests $500m in tour media and telecom. and locally-listed energy and infrastructure manager Spark Infrastructure with 19.99% and operator Tuniu 15.01%, respectively. China’s HNA Tourism Group has agreed to invest ASIA PACIFIC $500 million for a 24.1% stake in Tuniu, a US- listed Chinese online package tour provider. This AVCJ journalists win follows two rounds of funding worth a combined $648 million, with Hony Capital, DCM, Sequoia, awards Temasek Holdings, Ctrip and JD.com among the Asian Venture Capital Journal was honored at investors. the 2015 State Street Institutional Press Awards, Asia Pacific. Winnie Liu, associate editor at the Allianz, Baidu, Hillhouse publication, won the Journalist of the Year - Financial Literacy award, while Staff Writer form JV Holden Mann won the Award for Best Newcomer Chinese search giant Baidu, German insurer and was highly commended in the alternatives Rival bids were reportedly submitted by State Allianz and China-based Hillhouse Capital category. Managing Editor Tim Burroughs Grid Corporation of China in conjunction with have formed an internet insurance company was highly commended in both the financial Macquarie, AustralianSuper, and IFM Investors to distribute insurance products in China. It literacy and alternatives categories and won the and Queensland government-owned QIC. will apply for a license to sell insurance online Journalist of the Year - Regulation award. TransGrid is the owner and operator of the throughout the country, targeting both main high voltage transmission network in New individual customers and small and medium- South Wales and the Australian Capital Territory, sized businesses. AUSTRALASIA connecting generating, distributors and major end users to the grid. This network comprises 99 CCCC, NSSF set up TPG, Carlyle complete bulk supply substations and more than 12,900 kilometers of transmission lines and cables. infrastructure fund Healthscope exit The proceeds of the 99-year lease on China Communications Construction (CCCC) TPG Capital and The Carlyle Group have TransGrid will be used to pay for schools, and the National Council for Social Security Fund completed their exit from Australian hospital hospitals, public transport and roads. The (NSSF) have established a RMB15 billion ($2.3 operator Healthscope, having privatized the government plans on leasing out 49% of the billion) infrastructure fund. The vehicle received company in 2010 and re-listed it last year. They state electricity network with a view to raising RMB9 billion state-owned CCCC RMB6 billion sold 308.2 million shares for a reported A$853.7 A$20 billion. The partial lease of Ausgrid is from NSSF. million ($612 million). The PE firms made previous expected to be completed by mid-2016. partial exits through the IPO and a block trade NXP sells power assets to worth A$473 million and around A$900 million, respectively. billion, is higher than an earlier offer submitted JAC Capital by iKang’s founder and CEO and FountainVest NXP Semiconductors, a Dutch chip manufacturer Partners. listed in the US, has agreed to sell its entire radio GREATER CHINA frequency power business to Chinese state- Ping An, Adamas launch owned private equity firm Jianguang Asset Sequoia, Cathay join iKang Management (JAC Capital). The divestment is a SME-focused fund condition for NXP’s proposed takeover of US rival take-private bid Adamas Asset Management and Ping An Trust Freescale Semiconductor. -listed healthcare services provider have launched a joint venture fund with a target Meinian Onehealth has teamed up with a of $500 million to invest in growth-focused State-backed China fund group of investors – including Sequoia Capital Chinese small and medium enterprises (SMEs). and Cathay Capital Private Equity – to privatize It will leverage Adamas’ expertise in structured buys stake in ZTE unit its US-listed rival iKang Healthcare Group. The finance market and Ping An’s network and staff in China National Integrated Circuit Industry bid, which values the company at around $1.5 local markets. Investment Fund, a national fund established to

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promote the domestic semiconductor industry, Northstar closes PE, VC largest motorcycle and scooter manufacturer, will pay RMB2.4 billion ($376 million) for a 24% selling its remaining stake for INR7.7 billion ($117 stake in a unit of local electronics manufacturer funds million). The PE firm invested – alongside GIC ZTE Corp. Northstar Group has reached a final close of Private – in 2011 when Hero Group wanted to $810 million on its fourth fund, which targets its JV partner Honda Motor. RRJ, Value Partners invest Southeast Asia, with a particular focus on Indonesia. Meanwhile, the firm’s VC unit, NSI SoftBank leads $120m in Logan Property Ventures, has closed its debut fund at $89 million. RRJ Capital, Hong Kong-based asset Northstar Equity Partners IV launched in early round for Grofers management firm Value Partners, and other 2014, with a target of around $800 million and a Indian hyper-local delivery service Grofers has investors have committed HKD1.5 billion ($197 hard cap of $1 billion, and it achieved a first close raised $120 million in Series C funding led by million) to Logan Property Holdings, a real estate of $500 million in July of that year. The process SoftBank Corp. Existing investors Sequoia Capital, development business controlled by Chinese Tiger Global and Apoletto Asia also participated. billionaire Kei Ho Pang. RRJ holds about 5% of the Softbank will gain a 30% stake in Grofers. Hong Kong-listed company. India plans $1b renewables Renren leads round for US fund job search platform The Indian government wants to raise a $1 Chinese social networking platform Renren has billion private equity fund focused on renewable led a $22 million Series B round of funding for energy, according to Piyush Goyal, minister Shiftgig, a US mobile marketplace for short- responsible for power, coal and renewable term jobs. GGV Capital, Chicago Ventures, DRW energy. He added that the government would Venture Capital, Garland Capital, and others also was complicated by a challenging fundraising also seek to raise $4 billion per year over the next participated. environment and uncertainty about the 3-4 years for a clean energy fund. Indonesia. When Northstar raised its third fund - Highlight provides Series A which closed in 2011 at $820 million - Indonesia Next Orbit seeks $750m for was on a role, with growth topping 6%. The Asian for eDoctor Development Bank is projecting 4.9% for 2015. VC fund Highlight Capital has led a Series A round of Northstar entered the VC space last year India-based Next Orbit Ventures (NOV) is funding for eDoctor Healthcare Communications, when Shane Chesson, previously a technology- targeting $750 million for its second fund, which a Chinese start-up specializing in pharmaceutical focused investment banker, and Hian Goh, an will target the electronics systems design and marketing solutions. The deal is reportedly worth entrepreneur best known for setting up the Asian management. Ajay Jalan, NOV’s managing tens of millions of dollars. Food Channel, joined the team. The plan was partner, said the firm would raise $300 million by to support start-ups throughout Southeast Asia March of next year and the remainder by June. NORTH ASIA with Singapore as a hub. NSI received backing from Temasek Holdings Mitsui commits $52m to in the first close of its debut fund. Several other Naaptol Japan Post Bank to launch institutional investors are said to have come in towards the end after being impressed by the Mitsui & Co. Global Investment, the VC arm of PE division performance of the firm’s portfolio. Japanese conglomerate Mitsui, has invested Japan Post Bank, a unit of the recently-privatized another INR3.4 billion ($52 million) in Indian TV Japan Post Holdings, will create a division to shopping and e-commerce platform Naaptol. explore private equity investment opportunities. Japan skills platform gets Mitsui’s latest investment raises its stake in the The division will be led by Tokihiko Shimizu, who company from 5% to 20%. previously was instrumental in the Government $4.4m in funding Pension Investment Fund’s (GPIF) push to Coconala, a Japanese skills marketplace formerly diversify its assets and enter the alternatives known as WelSelf, has raised JPY540 million ($4.4 SOUTHEAST ASIA space. million) in funding from Jafco, Nissay Capital, SMBC Venture Capital and Voyage Ventures. This EMR to buy Indonesia gold VCs provide $6.1m round follows a JPY150 million round in September 2013 led by Nissay. mine for Kabuku Australian resources-focused investor EMR Japan-based Kabuku, manager of 3-D printing Capital is leading a consortium that has agreed service Rinkak, has closed a JPY750 million SOUTH ASIA to buy an Indonesia-based gold mine from ($6.1 million) Series A round with participation Hong Kong-listed G-Resources for $775 million, by Global Brain, Dentsu Digital Holdings and Bain exits Hero Motocorp including debt. The other investors are Farallon Mitsui Sumitomo Insurance Venture Capital. The Capital Management and individuals connected company will use the new capital to expand its for $117m to Wilmar International and the Hartono family, sales and marketing activities. Bain Capital has fully exited Hero Motocorp, India’s which owns Djarum Group.

6 avcj.com | December 01 2015 | Volume 28 | Number 45 COVER STORY [email protected] Extra ordinance A growing number of Chinese VC firms are raising top-up funds so they can continue supporting portfolio companies through ever larger growth rounds. Has the fundraising landscape changed forever?

THE JOURNEY THAT ENDED WITH CHINESE at Gobi. “We are thinking about raising a top-up trend even in the US and if you look at today’s VC online package tour operator Tuniu listing in fund but there are a lot of concerns in terms of market, the same conditions that affect the US the US took eight years. Capital poured in from fund size, structure and conflicts of interest for affect China as well,” says Jordan Silber, a partner venture capital firms, strategic players and LPs.” at law firm Cooley. “We have started to see sovereign wealth funds as the company built With an increasing number of start-ups some of the China funds, particularly the dollar- the scale required to get traction with American staying private longer and fueling their growth denominated funds, raising ‘overage funds.’” investors. with ever larger investment rounds, traditional This phenomenon goes hand-in-hand with Gobi Partners was prominent at the VC funds often don’t have the capital to stay escalating valuations. Competition for VC deals beginning but less so at the end. The early-stage involved on a pro-rata basis all the way to exit. is becoming more intense as non-traditional investor backed Tuniu’s Series A round in 2008, As a result, an array of sidecar, annex, top-up, venture investors – including private equity, contributing $3 million. Another round, worth and opportunity funds have emerged in China’s hedge funds and mutual funds – enter the $10 million, followed two years later with Gobi VC space over the past 24 months, extending market. It has prompted concern among early- committing $5 million in order to prevent its 20% firms’ reach into later funding rounds. It raises the stage GPs that fear they will not have enough stake being diluted. In 2011, Tuniu pocketed $50 question of whether the fundraising dynamic has firepower left to back winners. “The companies million as Highland Capital Partners, Rakuten and changed forever, or just for now. are like their babies. They just want to keep Sequoia Capital joined the investor roster. Gobi supporting the entrepreneurs and prevent their wanted to participate but could not due to a $15 Top-up time stakes being diluted,” one LP observes. million cap on its deal sizes. A fixture on the US venture scene, top-up funds In China, though, sidecar vehicles are popping By the time Tuniu completed a Series D or fall into two categories: down time and good up across the industry, with seed, early-stage and pre-IPO round last September, its valuation had time. The first are used when the main fund is growth-stage investors on the fundraising trail. jumped 75-fold since the first round. Needless running out of money, exits have yet to come, Earlier this year, DCM, Qiming Venture Partners to say, Gobi did not feature. Even as a public and the GP needs additional capital to support and Banyan Capital reached final closes on a top- up fund, an annex vehicle, and a co-investment fund, respectively. These came several months China US dollar VC fundraising after each GP raised a core venture fund. 6,000 25 Terminology can be loosely applied, but an annex vehicle is generally seen to differ from 5,000 20 an opportunity fund in that it focuses only on 4,000 15 follow-on investments in portfolio companies 3,000 from a certain fund. While an opportunity fund 10 Funds may share this purpose – both allow LPs to retain US$ million 2,000 exposure to businesses once they have grown 5 1,000 beyond the scope of the main fund – these 0 0 vehicles have been known to pursue separate 2008 2009 2010 2011 2012 2013 2014 2015YTD later-stage deals as well. No of funds Amount (US$m) For Qiming and Banyan, the driving factor was Source: AVCJ Research faster-than-expected exhaustion of the capital in their main funds that was held back for follow- on investments. Qiming raised a $75 million company Tuniu continues to tap private equity companies. The second, very much the story of annex fund tied to its third fund, which closed at and strategic investors. Hony Capital led a $148 the last two years, are sidecar vehicles formed $450 million in 2011 (it has since raised a fourth million investment in December, and then last when there are ample VC opportunities and vehicle). “When we raised the fund in 2011, we week HNA Tourism put in $500 million for a 24% robust LP demand for exposure. didn’t anticipate that the rounds would become stake. “We weren’t forming a lot of ‘overage funds’ – so big and absorb our reserve so quickly. That’s “Early-stage investors are quite passive in funds designed specifically to supply additional why we raised the annex fund,” says J.P Gan, a sense that we can’t continue to participate capital to the most promising of a VC fund’s managing partner at Qiming. when a company raises Series D or E expansion investments – in the US for quite some time. We Banyan’s capital-raising has been even more round, going up to more than $50 million. It’s a did some in the late 1990s and we have done concentrated. The GP, which spun out from IDG pity because we miss some great opportunities some at other times when the market has been Capital Partners in 2013, closed is debut fund at because of our small fund size,” Ken Xu, a partner very strong. To be honest, it’s a recent resurgent $206 million in early 2014, raised a $362 million

Number 45 | Volume 28 | December 01 2015 | avcj.com 7 COVER STORY [email protected]

second vehicle 12 months later, and then three opportunities to invest in Series A, and then we Existing LPs were invited to participate in the months after that raised $100 million for follow- will come later using the special vehicle,” Shi adds. annex fund and then we turned to new LPs. The on investments in Fund I portfolio companies. annex benefits LPs in the main fund because it “What we found in 2014 was that it might The LP angle increase the capital we can invest in portfolio be the best time in 10 years for VCs to invest in When the main fund is raised first and the top-up companies and therefore the influence we have high-quality companies. We deployed out debut fund comes later, a GP would normally require on them.” fund quickly and didn’t have enough in reserve permission from LPs to proceed with the latter Industry participants suggest two key ways in to support our portfolio companies,” says Xiang vehicle. If the LP is convinced by the explanation which the risk of conflicts can be minimized. First, Gao, a co-founder of Banyan. of why a top-up fund is necessary and that the have clear investment rules, such as a stipulation GPs also raise sidecar funds in parallel GP can execute the strategy, the next question is that the top-up fund can’t commit to a particular with main funds, for a variety of purposes. whether the GP has the bandwidth to manage company until the main fund has invested a certain amount of capital. Second, the GP could raise both funds at the same time. Select China VCs with top-up fund structures Morningside and Shunwei Capital Partners Manager Main fund Top-up vehicle both did this and GGV Capital appears to be following suit with its latest fund. The Sino-US DCM Ventures DCM Fund VII (2014) DCM Ventures China Turbo Fund (2014) firm closed its fifth fund in April 2014 at $620 Qiming Venture Partners Qiming Venture Partners III (2011) Qiming Venture Partners III Annex Fund million and then a top-up fund of $457 million for (2015) follow-on investments in companies from Funds Banyan Capital Banyan Partners Fund I (2014) Banyan Partners Co-invest (2015) IV and V closed in May of this year. The GP is now Morningside Venture Capital Morningside China TMT Fund IV (2015) Morningside China TMT Special looking to raise $1.1 billion simultaneously across Opportunity Fund II (2015) three vehicles: a $600 million core venture fund, Shunwei Capital Partners Shunwei China Internet Fund III (2015) Shunwei China Internet Opportunity Fund a $200 million top-up vehicle, and a $300 million II (2015) early-stage fund. GGV Capital GGV Capital V (2014) GGV Capital Select (2015) “Some GPs require lock-step commitments, Source: AVCJ Research meaning LPs must subscribe both to the main fund and to ‘overage fund’ simultaneously, and Morningside Venture Capital first introduced a multiple funds at the same time and retain the in some cases in a fixed ratio – so whatever your top-up vehicle alongside its third fund in 2014. same level of focus. Another consideration is commitment is, two-thirds of the capital is going It raised $412 million across three vehicles, whether the top-up fund might be favored over to the main fund and one-third to the ‘overage including an entrepreneurs fund that allows the main fund. fund’. This reduces the conflict of interest because members of the Morningside network to co- Typically, top-up funds only charge everybody is in the same deal and in the same invest in deals. A similar approach was taken for management fees on called capital, whereas the ratios. From a GP standpoint, it makes managing Fund IV this year: $400 million for the core fund, main fund charges fees on committed capital. the capital easier. But it does reduce flexibility to $200 million for a special opportunity fund, and A GP might therefore be incentivized to deploy the LPs,” says Silber. $60 million for the entrepreneurs fund. the former more quickly than the latter. The The GP says this structure primarily exists top-up fund might also receive more attention Strategy drift because of LP demand – in particular, the need because it contains a handful of high-performing GGV’s investments range from early-stage to to accommodate endowments and sovereign companies that are going to account for the bulk Series C rounds and industry participants say wealth funds. of the . the structure for Fund VI delineates its exposure “We want to keep those long-term “Conflicts of interest between different funds into different vehicles. Much like Morningside, institutional LPs in our fund but we don’t want are an important consideration, especially if they by splitting the fund into three parts, no single their large check sizes to impact the performance have different LP bases,” says Mingchen Xia, a component can become too big. At the same of the main fund – which is a small, early-stage principal in Hamilton Lane’s fund investment time, it does represent a broadening of the fund. A special opportunity fund solves this team. “How do you allocate the economics strategy. Rather than start at Series B or C, GGV issue, and it doesn’t create added pressure for or resources in the different funds? It could will consider more Series A deals so it can enjoy us to deploy capital when it is unnecessary to potentially lead to conflicts.” the maximum value appreciation as the next do so,” explains Ken Shi, a managing director at Newly-established Sourcecode Capital is an generation of start-ups build scale. Morningside. example of a GP with different LPs in its main Strategy shift – or strategy drift – is a concern Although the special opportunity fund is and annex funds. Having close its debut fund for some LPs as they see top-up funds move intended for follow-on investments in existing at $100 million last year and deployed half the towards later-stage investments. The suspicion portfolio companies such as smart phone maker corpus, the firm decided this year to raise a $40 is that GPs are simply taking advantage of a hot , online real estate platform Aiwujiwu and million annex fund. It includes new and existing market to boost as a online healthcare business Guahao – each of LPs, and the terms are the same as for the main means of generating more fees. which is valued above $1 billion – it is now used fund. “GPs have a variety of reasons for raising to pursue separate later-stage deals as well. Shi “LPs in the annex fund want to invest in fewer top-up funds. They may raise a separate pool of notes that the proportion of the fund earmarked companies but ones with clear growth prospects. capital to target later or earlier stage investments, for these investments is very small. All portfolios are selected carefully from the or increase investment in specific segment they “We will only invest in companies where we existing pool,” says Yi Cao, founder and CEO of see opportunity. In many cases, they simply raise know the entrepreneurs well. We might miss the Sourcecode. “We haven’t had any complaints. additional capital when they can to gain more

8 avcj.com | December 01 2015 | Volume 28 | Number 45 COVER STORY [email protected]

fire-power,” says Sally Shan, managing director at growth funds for a number of years and has Some LPs say they would prefer firms to focus HarbourVest Partners. separate teams for each one. on a certain stage of venture capital instead of Shunwei raised $1 billion for its most recent “It is dangerous raising a fund if the the full spectrum. However, to a certain extent China fund, split equally between a core vehicle companies aren’t doing well. In the growth they are pulled by the relatively rapid evolution and an opportunity vehicle. The firm said it not stages, the price-to-earning (P/E) multiples tend of the Chinese market – a high-quality GP will only wanted to make follow-on investments in to be relatively lower. LPs are cautious that GPs win support for strategic shifts provided it can existing portfolio companies but also back new shouldn’t feel obliged to maintain ownership justify them in the context of changes in the companies seeking expansion rounds. “Based by raising top-up funds. If the company can’t do broader VC ecosystem. on what we have accumulated over the last few years in terms of industry resources and knowledge, we have the capabilities to invest “We are thinking about raising a top-up fund but in early- and growth-stage companies,” Tuck Lye Koh, co-founder and CEO of Shunwei, told AVCJ there are a lot of concerns in terms of fund size, at the time. structure and conflicts of interest for LPs” – Ken Xu Clearly, investors were suitably convinced, and it comes back to the question of motivation and execution. A VC firm might have a very clear well, then it won’t do well even if GPs put more The caveat is that this momentum might just rationale for raising a top-up fund, for example, it money into it,” an LP observes. as quickly be turned on its head. If top-up funds has identified 10 companies within the portfolio It remains to be seen how far strategies can exist largely because start-ups are raising larger that are likely to be outperformers and wants to evolve before they become unsustainable, and private rounds, then their longevity is conditional back them through Series D and beyond. But it the answer will vary by GP. “Chinese GPs will be on this market dynamic persisting. Not everyone ultimately comes down to whether the GP is able one of two extremes. Weaker ones will be phased is of the view that it can. to pick the right companies and has the capacity out from the market because LPs only want to “I don’t think this phenomenon will sustain. to guide them through later-stage growing pains. invest in good GPs,” says Gobi’s Xu. “Those GPs Top-up funds are market-dependent and there A firm that wants to pursue a growth strategy will use top-up funds to accommodate more will be more of them if companies continue to alongside a venture strategy – with different LPs, although sometimes these vehicles are not raise larger rounds, but I doubt that,” says one companies in each silo – needs investment consistent with their core strategies. On the other China-focused VC investor. “My guess is that you professionals comfortable operating in each hand, it gives the GPs more opportunities to try won’t see many top-up funds in the next two field. Sequoia Capital has run China venture and out new practices.” years.”

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AVCJ Group Ltd. AVCJ Group Ltd. AVCJ Group Ltd. Unit 1401-03, Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong Unit 1401-03, Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong Unit 1401-03, Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong Tel: (852) 3411-4900 Fax: (852) 3411-4999 Tel: (852) 3411-4900 Fax: (852) 3411-4999 Tel: (852) 3411-4900 Fax: (852) 3411-4999 asianfn.com/journal_regionalreports.aspx Email: [email protected] Website: avcj.com Email: [email protected] Website: avcj.com Email: [email protected] Website: avcj.com 13th Annual Private Equity & Venture Forum Australia & New Zealand 2016 2-4 March 2016, Sydney

GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY SIGN UP Themes at the 2016 Forum include: NOW! AND 1 Hear how the leading global fund managers view SAVE Australasia as an investment destination US$600 Discover how LPs view private markets and (until 11 DEC only) 2 where they will be making future allocations Uncover how you can gain access to infrastructure 3 investments Find out about the rise in the attraction of private debt and the 4 opportunities this presents for you Explore what international LPs look for when selecting an Australasian 5 fund manager Uncover where you will find the best private market investment 6 opportunities across Asia Find out how the leading domestic continue to evolve and thrive in a 7 competitive market Discuss how co-investment is growing in importance for investment 8 firms and LPs

Forum vital statistics 300+ 100+ 60+ 17 6 participants Limited speakers countries premium networking Partners represented opportunities For the latest programme and speaker line-up, visit avcjausnz.com

Registration: Jayla Tam T: +852 3411 4935 E: [email protected] Enquiry Sponsorship: Darryl Mag T: +852 3411 4919 E: [email protected]

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avcjausnz.com Join your peers #avcjausnz 13th Annual Private Equity & Venture Forum FOCUS Australia & [email protected] New Zealand 2016 2-4 March 2016, Sydney How early? Assessing venture capital secondaries – on a direct or LP interest basis – presents a different set of challenges to private equity transactions. The key factors are transparency and timing of entry

THE TECHNOLOGY BOOM HAS BENEFITED Assessing a VC secondary proposition requires perspective, not a Series A or B where you might VC firms that got in early and have seen the a somewhat different skill set to PE. Companies just have a business plan and might be taking valuations of their portfolio companies rise with are characterized by multi-class share structures, revenue risk,” Wu explains. each consecutive funding round. For secondary follow-on rounds, longer holding periods, and Even if an investor gets comfortable with a GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY SIGN UP investors looking to pick up assets or fund less proven business models. It may be relatively venture capital portfolio, there is no guarantee interests on the other side, the experience has easy to draw a conclusion on one asset, but an it will come at the right price. This is usually the Themes at the 2016 Forum include: NOW! been more mixed. entire portfolio presents more of a challenge. biggest obstacle in any secondaries deal, but the AND “We have passed on portfolios in the last “The process is a few months of due diligence difficulty is arguably magnified in venture capital Hear how the leading global fund managers view SAVE couple of years because we couldn’t get with detailed visits on the ground of underlying because, as LGT’s Coulter puts it, the asset class 1 comfortable with valuations,” says Doug Coulter, portfolio companies,” says Paul Robine, managing “is in part about hope and expectation.” While Australasia as an investment destination partner at LGT Capital Partners. “There is a good partner and CEO at TR Capital. “A lot of large the seller emphasizes rapid growth and exciting US$600 chance portfolios are marked up, maybe on the secondary funds will think only in terms of stories, the buyer needs to step back and make a 2 Discover how LPs view private markets and (until 11 DEC only) basis of later rounds and euphoria, so you may bottom-up valuation call. It may be that neither where they will be making future allocations in fact be paying higher than fair value. With approach is a good fit. secondaries, a lot of it is about the price you “It is more like looking Valuation could also be a point of contention Uncover how you can gain access to infrastructure are paying, but it is also about the quality of the at the situation from with the entrepreneurs who control the 3 investments assets you are buying. One of the problems with underlying portfolio companies. “While they are VC is it’s much harder to assess asset quality.” a growth perspective, not impacted financially, entrepreneurs would Find out about the rise in the attraction of private debt and the Indeed, the pricing for venture capital fund prefer a higher valuation,” says Prashant Mehta, 4 positions is at its highest in eight years. Greenhill not a Series A or B a partner at Indian VC firm Lightbox. “They don’t opportunities this presents for you Cogent noted in its report on secondary activity where you might just want to be sold at below a certain valuation in the first half of 2015 that in many cases because they might be looking to raise new Explore what international LPs look for when selecting an Australasian pricing is “benefiting from large unrealized gains have a business plan rounds of capital.” 5 fund manager subsequent to the record date due to IPOs and up-rounds of financing at valuation levels that and might be taking Industry pipeline are significantly higher than the most recently Lightbox was created last year when KPCB Uncover where you will find the best private market investment revenue risk” – Lucian Wu 6 reported carrying values.” and Sherpalo Ventures ended their India joint opportunities across Asia At the same time, investors are still willing to venture, and the local management team spun Find out how the leading domestic continue to evolve and thrive in a pay more for buyout funds. During the first six discounts. They may not have the time to out. Several secondary specialists supported 7 months of 2015, the average high bid for buyout perform months of due diligence because they the acquisition of the existing portfolio, while a competitive market funds was 95% of net asset value. For venture, are in very intermediated situations.” separate group of LPs provided $100 million for it was 82%. The disparity is in keeping with Of the 25 secondary transactions TR has new investments. It was followed by the sale of Discuss how co-investment is growing in importance for investment historical trends and reflects the comparatively completed across its two funds, seven were Canaan Partners’ India VC portfolio to J.P. Morgan 8 firms and LPs greater risk that naturally comes with venture capital deals, either single assets or Asset Management. In both cases, the LP base venture capital. It also impacts how different portfolios. The payoff for the extensive due was relatively small and motivated to sell, which investors prefer to address the VC secondaries diligence is a potentially higher return than in helped facilitate the transactions. Forum vital statistics opportunity. private equity (perhaps a net multiple of more The general expectation is that more venture 300+ 100+ 60+ 17 6 “You are looking at buying VC fund interests than 2x versus 1.5x) partly due to the steeper capital secondary assets will become available: at versus buyout or growth funds where the discounts available for fund positions. one end of the scale, certain tech companies are participants Limited speakers countries premium networking Partners represented opportunities outcome by nature is going to be more The risk factor – identifying the handful of raising capital at ever-higher valuations and some dispersed, warranting deeper discounts,” Lucian winners in a portfolio that also contains its fair existing backers might want to exit; at the other, For the latest programme and speaker line-up, visit avcjausnz.com Wu, managing director at HQ Capital, says of the share of mediocrity and write-offs – can be a lot of VC funds are sitting on portfolios primed pricing data. “But this shouldn’t be generalized ameliorated by the timing of entry. Coming in at for IPO exits that have yet to materialize. Registration: Jayla Tam T: +852 3411 4935 E: [email protected] to apply necessarily in direct situations where year five or six, there is more transparency than in In addition to India, TR’s Robine sees potential Enquiry Sponsorship: Darryl Mag T: +852 3411 4919 E: [email protected] the assets are more concentrated and you have year two or three. in China, particularly among financial institutions deeper access to the underlying companies.” While HQ Capital is generally more attracted that are selling assets for regulatory reasons and to single-asset VC secondary deals, the fund among corporations that are offloading VC units Co-Sponsors Digging deep positions it considers tend to involve later-stage due to financial or strategic pressure. “When we To many, direct positions in tech companies portfolios with companies that offer greater started eight years ago this was not the case, are preferable to LP interests because they visibility on revenue and EBTIDA. “It is more but in the past 12 months we have seen an simplify an already complicated process. like looking at the situation from a growth increasing number of Chinese sellers,” he says.

avcjausnz.com Join your peers #avcjausnz Number 45 | Volume 28 | December 01 2015 | avcj.com 11 DEAL OF THE WEEK [email protected] / [email protected] S Chand unlocks digital doors

FOR THE MANAGEMENT OF S CHAND prominent backer, with the conclusion of a new connected classroom venture, DS Digital, and Group, a commanding presence in India’s $27 million funding round ledthe International investments in education platform developers education publishing market might have been Finance Corporation (IFC), which put in $17 Edutor and Smartivity. satisfying enough. million. Everstone put in the rest. Currently S Chand’s products are used by as However, as the team surveyed the sector in The educational product developer was a many as 25 million students in India, in almost 2012, they felt that there was far more they could natural fit for the IFC, which 25,000 education institutions; the do. New hardware and software were creating recognized an investment company hopes to reach 100,000 considerable opportunities for an experienced opportunity that would help it institutions and 100 million education-oriented player like S Chand. pursue its goals of promoting students by 2020. A INR2 billion ($38 million) investment positive economic development. With its recent moves in the from Everstone provided the support that the S Chand, for its part, saw IFC as a digital instruction field, S Chand company needed to explore the possibilities of partner with more potential for wants to become a platform with digital ventures. Along with the financial means global alliances than Everstone. multiple forms of education to to acquire educational software developers, the Though IFC contributed the Education: Books to digital augment its historical strengths involvement of Everstone helped bring in more bulk of the capital, Everstone still in publishing. A willingness to efficient ways of doing business. played a crucial role in the proceedings. IFC is advance educational technology, supported by “It was more of a family-run business earlier. an LP in the private equity firm’s funds, and this S Chand’s generations of experience in the field, Now I think after the investment we havemade connection led to the first meeting between S could result in a formidable lead in the market. this organization a lot more professional,” says Chand and the development finance institution. “Books are now becoming more of a hybrid Himanshu Gupta, joint managing director of S Everstone’s previous investment gave S Chand solution. So a book will not only mean a print book; Chand. “There are clearer systems and guidelines the flexibility to take financial chances that it they will have other features, like interactive videos, to take the company forward, and it has given us could not support with its publishing business animations, multimedia and augmented reality,” a clearer vision.” alone. The company’s commitments since says Gupta. “These things will help the students Now the company has gained another 2012 include the establishment of an in-house learn better in their own environments.” Partners Group targets top-tier baby products

THE RISE OF E-COMMERCE IS REDRAWING by Aiyingshi’s adoption of a two-pronged position - their channel share is projected to rise the competitive map for the maternity, baby and approach and the underlying dynamics in the from 37% to 39% - supermarkets will fall from child (MBC) market in China, with a host of online MBC market. 11% to 6% and hypermarkets from 25% to 13%. start-ups getting funded. “Milk powder, diapers and associated baby This industry transition is also expected to AVCJ Research has records of at least four products do not account for a significant accelerate consolidation. While Aiyingshi is a companies offering a combination of baby proportion of income for families in the first-tier market leader, its share of the overall MBC space products and social networking raising rounds cities in which Aiyingshi is most is less than 1%. of at least $100 million over the course of the active. The buying decision is Partners Group has numerous year. They include Beibei, BabyTree and Mia.com, therefore about trust, product portfolio assets around the world which between them received more than $500 safety and brand,” he says. that are relevant to MBC and million. “E-commerce sites are good most of the premium brands in While some of these are aspiring online-to- for selling low to mid-range this area are of European origin. offline (O2O) players, Aiyingshi is going in the products, but for high-end Aiyingshi – which was founded opposite direction, adding an online presence products that require a higher in 1997 by Qiong Shi, who to a bricks-and-mortar network of 159 stores customer touch, specialty retail is Children: Growth market remains the CEO – wants Partners across , Zhejiang, Fujian and Jiangsu. the best way.” Group to make introductions Partners Group recently bought a minority All the brands stocked by Aiyingshi are to potential suppliers and partners. The focus stake in the business – for a sum in the region foreign. Yu expects to see a bifurcation in the will be on broadening the category range and of $30-50 million – facilitating an exit for China market between high-end specialist retailers like deepening the company’s exposure in existing New Enterprise Investment (CNEI) and two other Aiyingshi and e-commerce, with hypermarkets categories, bringing products to China that are shareholders in the process. It is the firm’s first that stock a wide variety of products losing out. not currently available there. direct investment in China. E-commerce’s MBC channel share was 19% last “We have already made a strong effort to line Kelvin Yu, managing director and head of year and this is expected to reach 38% in five up potential acquisition targets and targets for China at Partners Group, says he was convinced years. While specialty retailers have a defensible licensing discussions,” Yu adds.

12 avcj.com | December 01 2015 | Volume 28 | Number 45 asianfn.com/Research_Database.aspx Your ultimate link to the Asian private equity, venture capital and M&A markets

AVCJ database is the ultimate link between Asian dealmakers and those who provide advisory, financial, legal and technological services to the private equity, venture capital and M&A industries. The AVCJ Database gives subscribers access to more than 125,000 companies and facts and statistics on over 90,000 transactions.

Deal Report

NASDAQ listed Focus Media has received a non-binding tender offer of $5.4 per share, or $27 per ADS, of its entire outstanding common shares from a consortium of investors, including company chairman Nan-chun Jiang, CDH Investments, China Everbright Limited, CITIC Capital Partners, FountainVest Partners and The Carlyle Group. The consideration would be approximately $2.88 Features billion based on the 532.95 million common shares outstanding and not held by the chairman.

Announced (US$mln): $2,877.9400 Previous Stake: 17.56% Stage: Buy-outs (MBO/MBI/LBO)

Announced Date: Aug 12, 2012 Deal Stake: 82.44% Closed (US$mln): n/d ■ Final Stake: 100.00% A large profile pool with around 6,800 Closed Date: n/d

Deal Type: Private Equity Buyout funds, 3,800 GPs and 3,000 LPs Deal Status: Agreement in Principle Acquisition Technique:

Acquisition Attitude: Neutral ■ Comprehensive records, including Involved Companies Company Name Deal Role Amount(US$mln) Deal Stake Industry Nationality

Carlyle Asia - China Investor n/d n/d Private Equity United States more than 80,000 M&A transactions; CDH China Management Co., Investor n/d n/d Private Equity Hong Kong Ltd. China Everbright Ltd. Investor n/d n/d Finance Hong Kong CITIC Capital Partners Ltd. Investor n/d n/d Private Equity Hong Kong 19,000+ PE/VC investments; over FountainVest Advisors Ltd. Investor n/d n/d Private Equity China (PRC) Nan-chun Jiang Investor n/d n/d Unclassified China (PRC) Focus Media (China) Holding Investee n/d n/d Advertising China (PRC) 2,400 PE/venture-backed IPOs; and in Co., Ltd. (FocusMedia) Fosun International Ltd. Seller n/d -17.20% Steel China (PRC) Undisclosed Shareholder(s) Seller n/d -65.24% Unclassified United States Citigroup Global Markets Asia Financial Adviser, n/d n/d Securities/Investment United States excess of 3,400 exits Ltd. Investor (Carlyle Asia Banking - China) Citigroup Global Markets Asia Financial Adviser, n/d n/d Securities/Investment United States Ltd. Investor (CDH China Banking Management Co., Ltd.) ■ Pan-Asian coverage, including Citigroup Global Markets Asia Financial Adviser, n/d n/d Securities/Investment United States Ltd. Investor (China Banking Everbright Ltd.) Citigroup Global Markets Asia Financial Adviser, n/d n/d Securities/Investment United States Australasia and Japan Ltd. Investor (CITIC Banking Capital Partners Ltd.) Citigroup Global Markets Asia Financial Adviser, n/d n/d Securities/Investment United States Ltd. Investor Banking (FountainVest Advisors Ltd.) ■ Citigroup Global Markets Asia Financial Adviser, n/d n/d Securities/Investment United States Data that is updated daily and tracked Ltd. Investor (Nan-chun Banking Jiang) JP Morgan & Co Inc. Financial Adviser, n/d n/d Securities/Investment United States Investee (Focus Media Banking as far back as 1990 - the longest and (China) Holding Co., Ltd. (FocusMedia)) Morgan Stanley - Beijing Financial Adviser, n/d n/d Securities/Investment United States Representative Office Investor (CITIC Banking deepest track record in Asia. Capital Partners Ltd.) Conyers Dill & Pearman Legal Adviser, n/d n/d Legal Services United Kingdom Investor (Nan-chun Jiang) ■ Data downloads in MS Excel and PDF Copyright 2012 AVCJ Group Ltd. All rights reserved. formats Plus 1

■ Powerful search functions and accurate ✔ New features on selection statistics for the analysis ✔ Performance data on exits ■ Customer service via telephone and ✔ Portfolio holding period email

For a live demonstration or to subscribe, please call Helen Lee at +(852) 3411 4961 or email [email protected] avcj.com PROFILE [email protected] Institutional angel Driven by a combination of professional ambition and family considerations, Huoy-Ming Yeh has experienced the start-up space in China and the US. She now wants to put this to good use with Upshot

TO HUOY-MING YEH, IT WAS A CLASSIC focus,” she says. “And you just have to keep focus assets under management.” supply-demand imbalance. Having spent six on the right things for you. Then everything else Yeh’s tenure coincided with a push by the years in Shanghai managing a VC fund under counts.” Chinese government for renminbi-denominated Silicon Valley Bank (SVB), she was well aware of A graduate of Wellesley College, Yeh spent 10 PE and VC funds. SVB was one of the first to the growing amount of capital in Asia looking for years as an engineer before completing an MBA launch one of these vehicles, working closely a home with Silicon Valley start-ups. AngelList, at the Massachusetts Institute of Technology with the Shanghai authorities. A combination meanwhile, was always looking for backers to get (MIT). Her classmates included Kelvin Laws, who of fund and direct investments followed as SVB the nascent companies on its platform beyond went on to co-found AngelList in 2010. became an LP in the first renminbi funds raised the stage. More significantly, it was at MIT that Yeh got by the likes of Qiming Venture Partners and “The start-ups often raise one round of a first taste of entrepreneurship and a sense of Northern Light Venture Capital. funding but find it difficult to raise follow- how technical knowledge and experience could “Now, when you look at Chinese fund on rounds because there aren’t many large crystallize into a company rather than just a managers, everyone that has a US dollar fund has institutional venture capital funds on the a renminbi fund as well, or is at least considering platform. As a result, many leave the platform raising one, because the Chinese government is and raise further capital from traditional VC firms,” strongly encouraging the use of renminbi,” she Yeh explains. “AngelList needed to bring in more notes. “It has actually become a lot more difficult institutional capital to become a long-term player to deploy US dollar funds in China.” that supports deals sourced by syndicate leads and make whole ecosystem more open and There and back again connected.” Having moved to Shanghai together, Yeh’s family She founded Upshot to fill this gap. Its first departed as a unit in 2014 – a decision partly fund, worth $400 million, was created earlier this driven by a desire to redress the Sino-US balance year with China Science & Merchant Investment in her daughter’s upbringing. “You need to have Management Group as the sole LP. people around you, and for my husband and me, The AngelList model begins with a syndicate that’s the family,” she says. “As for my career, I want lead – usually a successful entrepreneur – to follow my passion and mix together all my indentifying a start-up he wants to back. He seeds a syndicate and other angel investors are able to contribute capital. The syndicate lead and “When I get out of the business school, I wanted AngelList get a portion of any carried interest arising from the investment on exit. Upshot’s be an investor. I wanted to be with young support will enable the best start-ups to raise companies and help them grow” more money in less time. “In the US, companies are taking longer to exit than originally anticipated and some VC firms are product. “When I get out of the business school, experience in China and in the US.” raising larger funds to support these companies. I wanted be an investor,” she recalls. “I wanted to Despite returning to the US with no job These funds don’t deploy too much capital in be with young companies and help them grow.” in place, Yeh was confident she could find the early-stage space because it isn’t worth their After a stint with Lehman Brothers, Yeh set up something, having developed a resilience while – it might take the same amount of time PacRim Venture Partners, a small venture fund building the SVB business in China. As a woman to manage $1 million investment as a $10 million based in Silicon Valley. Then SVB came calling and in venture capital, she questions whether it investment,” Yeh adds. But this is our sweet spot.” in 2008 she was dispatched to Shanghai. It was would have been possible to follow the same an agreeable move for the whole family. Yeh’s evolutionary path in the US. Engineer to investor husband had a job opportunity in China and they “The Chinese market is still developing and Upshot represents a unique cross-border wanted to raise their daughter, then aged two, in this allows women to come in whereas in the US opening for Yeh, who was born in Taiwan and a bi-cultural environment. SVB’s China operation venture capital is very much an old boy network was raised there until the age of 15 when she was even younger. – unless you have been to Stanford Business moved to the US, but also a compromise. While “When I first came to Shanghai, my home School or Harvard it’s very difficult to break in,” she has spent her career chasing opportunities, was my office,” she says. “I built the team, hiring Yeh observes. “When I went to China, Jenny Lee ambitions have guided – perhaps increasingly people they have there today. I also helped them of GGV, Ruby Lu of DCM and Tina Ju of KPCB were – by considerations beyond work. “Once I had raise the first fund. After five-and-a-half years, all there around the same time. We were part of a family, somehow I felt life had its priority and SVB Capital had RMB600 million ($94 million) in that wave.”

14 avcj.com | December 01 2015 | Volume 28 | Number 45 PRIVATE EQUITY DATA FILE | AVCJ RESEARCH [email protected]

PRIVATE EQUITY IN ASIA Investment Breakdown by Country From January to November 2015 Country Deal Amount ($mln) No. of Deals No. of Disclosed Deals No. of Investee China (PRC) $43,618.2 896 611 849 Australia $23,939.6 68 51 67 India $14,702.9 515 414 467 South Korea $14,475.5 170 162 168 Hong Kong $3,628.1 27 19 27 Japan $3,042.3 440 306 431 Taiwan $2,524.1 13 9 13 Indonesia $1,180.1 60 22 58 Singapore $936.1 71 53 67 New Zealand $452.1 12 5 12 Vietnam $159.7 12 10 12 Pakistan $141.0 3 3 3 Thailand $79.9 19 13 17 Philippines $78.4 14 6 14 Malaysia $53.8 36 24 35 Cambodia $15.0 1 1 1 Myanmar (Burma) $0.3 1 1 1

FUND-RAISING MONITOR

CLOSED FUND Location: Indonesia Fund Name: Northstar Equity Partners IV Ltd. Closing Amount: US$ 810 million (final close) Launch Date: May 2014 Fund Manager/Advisor: Northstar Advisors Pte. Ltd (Northstar Group) Stage Focus: Buy-outs (MBO/MBI/LBO), Turnaround/ Restructuring Industry Focus: Agriculture/Fisheries, Consumer products/services, Financial services, Mining and metals, Retail/Wholesale, Telecommunications Geographical Focus: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar (Burma), Philippines, Singapore, Thailand, Vietnam Contact: Sandy Hokijanto Phone: (65) 6229-8613 Email: [email protected] Website: www.nsgroup.com Update: Northstar Group has reached a final close of $810 million on its fourth fund, which targets Southeast Asia, with a particular focus on Indonesia. Northstar Equity Partners IV launched in early 2014, with a target of around $800 million and a hard cap of $1 billion, and it achieved a first close of $500 million in July of that year. The process was complicated by a challenging fundraising environment and uncertainty about the Indonesia.

NEW FUNDS Location: India Fund Name: Next Orbit Ventures Fund II Target Amount: US$ 750 million Launch Date: November 2015 Fund Manager/Advisor: Next Orbit Ventures Stage Focus: Buy-outs (MBO/MBI/LBO), Expansion/, Mezzanine/Pre-IPO, Start-up/ Early Stage, Turnaround/Restructuring Industry Focus: Electronics Geographical Focus: India Contact: Hetal Gandhi Phone: (91) 91-6754-0972 Email: [email protected] Website: http://nextorbitventures.com Update: Next Orbit Ventures will raise its second fund at $750 million, which will invest in the electronics industry, including in a semiconductor chips manufacturing facility. The Fund aims to raise commitments of up to $300 million by March and the remainder by June 2016.

Number 45 | Volume 28 | December 01 2015 | avcj.com 15 15th Annual Private Equity & Venture Forum

9-10China March • China World Summit 2016 Wing, Beijing GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY Why you can't miss AVCJ China Forum 2016: Learn from 50+ renowned speakers who share unique insights on regional and domestic investment opportunities

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Meet 100+ LPs from China and beyond

Grasp the latest trends and opportunities through 15+ thought-provoking sessions covering the most important topics

Enjoy numerous and intimate networking opportunities with top experts at our workshops, roundtables and social events 2015 Forum Highlights: 335 46 LPs 100+ 18 8 215 Participants Speakers Limited Countries Unique networking Companies Partners Represented opportunities Represented LPs GPs TI O A R

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1 : 1 L SAVE US$600 Attended by 100+ LP book before 18th December and 46+ Speakers from China and overseas Y COUNT R

Y B Over 335 participants from 18 countries and 215 companies.

Registration enquires: Pauline Chen Sponsorship enquires: Samuel Lau T: +852 3411 4936 T: +852 3411 4963 Enquiry E: [email protected] E: [email protected]

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