The Mongol Lottery Baring Private Equity Asia’S Jean Eric Salata Foreign Investors Crave Mongolia’S Resources, but Fear Its Murky Politics Page 7 Page 15
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Asia’s Private Equity News Source avcj.com March 26 2013 Volume 26 Number 12 EDITor’s VieWPOINT Nominations open for the AVCJ China Awards Page 3 NEWS AMP, Canaan, Carlyle, CPPIB, CVC, CVCI, FountainVest, JAFCO, KKR, Quadria, Shoreline Page 4 INDONESIA WEBINAR What must Indonesia do to turn the hype into private equity returns? Page 10 DEAL OF THE WEEK Leopard Capital makes Cambodia agriculture investment Page 14 INDUSTRY Q&A The Mongol lottery Baring Private Equity Asia’s Jean Eric Salata Foreign investors crave Mongolia’s resources, but fear its murky politics Page 7 Page 15 FOCUS DEAL OF THE WEEK Digital down under Mekong mobile exit Angels back Australian venture revival Page 13 PE firm to sell rest of Mobile World in IPO Page 14 AVCJ WILL SKIP AN ISSUE NEXT WEEK FOR THE EASTER HOLIDAY. WE return ON APRIL 9 INNOVATION... SOPHISTICATION... INTEGRATION... Shearman & Sterling has an established presence with a 139-year legacy. It is one of the world’s leading international law firms known for its expertise in virtually every area of law relating to commercial and financial activity, from advice on investment funds, capital markets, corporate/mergers and acquisitions, project development and finance transactions through to representation in international arbitration and litigation. With a long-standing commitment to Asia for more than 30 years, we offer a sophisticated approach to deliver innovative and integrated strategic, tactical and technical advice to our clients. Our core practice areas include: ▪ Acquisition Finance ▪ Intellectual Property ▪ Privatizations ▪ Asset Management ▪ International Arbitration ▪ Project Development ▪ Banking & Finance ▪ Litigation & Dispute & Finance ▪ Capital Markets Resolution ▪ Regulatory & Compliance ▪ Direct Investment ▪ Mergers & Acquisitions ▪ Fund Formation ▪ Private Equity ABU DHABI | BEIJING | BRUSSELS | DÜSSELDORF | FRANKFURT | HONG KONG | LONDON | MILAN | MUNICH | NEW YORK PALO ALTO | PARIS | ROME | SAN FRANCISCO | SÃO PAULO | SHANGHAI | SINGAPORE | TOKYO | TORONTO | WASHINGTON, DC shearman.com EDITor’s VieWPOINT [email protected] Managing Editor Tim Burroughs (852) 3411 4909 Staff Writers Andrew Woodman (852) 3411 4852 Winnie Liu (852) 3411 4907 Have your say in Creative Director Dicky Tang Designers Catherine Chau, Edith Leung, Mansfield Hor, Tony Chow Senior Research Manager Helen Lee the China Awards Research Manager Alfred Lam Research Associates Herbert Yum, Jason Chong, Kaho Mak INNOVATION... AS anyone WHO HAS BEEN READING • Private Equity Deal of the Year Circulation Manager AVCJ’s coverage in recent months will know, • Venture Capital Deal of the Year Sally Yip China fundraising disappointed in 2012. Country- • Exit of the Year Circulation Administrator focused funds attracted just $23.4 billion, down • Fundraising of the Year - US Dollar Prudence Lau 51.3% on the previous year. The damage was • Fundraising of the Year – Renminbi Manager, Delegate Sales SOPHISTICATION... done in the second half, and mainly by renminbi- Pauline Chen denominated vehicles. After attracting $15.7 Submissions can be made via email Senior Marketing Manager Rebecca Yuen billion in the first six months, local currency funds ([email protected]) or online and got just $4.2 billion in second six months. will be accepted until April 15. They should Director, Business Development Darryl Mag So where does this leave us for the 2013 AVCJ relate to investment, exit and fundraising activity China Awards? We have separate categories for between April 1, 2012 and March 31, 2013. Manager, Business Development Anil Nathani, Samuel Lau INTEGRATION... US dollar and renminbi fundraising and, based The AVCJ Editorial Board will evaluate the Sales Coordinator on the headline statistics, pickings for the latter entries and submit a long list in each category Debbie Koo should be pretty slim, especially when we strike to a select panel of industry judges. The judges Conference Managers out the government-driven entities. will consider these recommendations, and if Jonathon Cohen, Sarah Doyle, Zachary Reff, Last year, Co-Win Capital’s RMB2.5 billion necessary, propose alternative candidates. The Conference Administrator Amelie Poon ($402 million) Nanhai Growth Fund V triumphed final shortlists - no more than five per category - Conference Coordinator Shearman & Sterling has an established presence with a 139-year legacy. It in a category that was, with all due respect to the will then be drawn up. Fiona Keung, Jovial Chung nominees, lacking a truly big name. Fortunately, The shortlists will be posted online for the Publisher & General Manager is one of the world’s leading international law firms known for its expertise in this year we already have two: China International entire PE and VC community to vote on from May Allen Lee virtually every area of law relating to commercial and financial activity, from Capital Corp. (CICC) raised RMB5 billion for 2-16. As in previous years, voting is not limited Managing Director the CICC Jia Tai Private Equity Fund; and CDH to AVCJ subscribers but voters must register - Jonathon Whiteley advice on investment funds, capital markets, corporate/mergers and acquisitions, Investments reached a final close of RMB8 billion providing name, firm and contact details - so as Chairman Emeritus on its second local currency vehicle. to avoid vote packing. No more than 10 votes Dan Schwartz project development and finance transactions through to representation in On the US dollar side, it was difficult to will be accepted from employees of a single firm. international arbitration and litigation. look past Hony Capital Fund V, which took The AVCJ subscriber base has a 50% say in the barely four months to accumulate $2.4 billion final result, with the judges and the AVCJ Editorial Incisive Media 20th Floor, in commitments. It’s possible we will end up Board each accounting for 25%. Tower 2, Admiralty Centre with a similar situation in 2013: At $1.35 billion, The winners will be announced at the Awards 18 Harcourt Road, With a long-standing commitment to Asia for more than 30 years, we offer a Admiralty, Hong Kong FountainVest Partners’ second China fund is by a cocktail, held in Beijing on May 30 as part of the T. (852) 3411-4900 distance the largest US dollar vehicle out there. 2013 AVCJ China Forum. F. (852) 3411-4999 sophisticated approach to deliver innovative and integrated strategic, tactical E. [email protected] Who deserves the plaudits? Nominations for URL. avcj.com and technical advice to our clients. Our core practice areas include: the awards are now open, so you can have your Beijing Representative Office say. The categories are as follows: Room 1805, Building 10, Jianwai SOHO, 39 East 3rd-Ring Road, • Firm of the Year Tim Burroughs Chaoyang District, • Private Equity Professional of the Year Managing Editor Beijing 100 022, China ▪ Acquisition Finance ▪ Intellectual Property ▪ Privatizations T. (86) 10-5869-6205 • Venture Capital Professional of the Year Asian Venture Capital Journal F. (86) 10-5869-7461 ▪ Asset Management ▪ International Arbitration ▪ Project Development E. [email protected] ▪ Banking & Finance ▪ Litigation & Dispute & Finance Please note that our Hong Kong office will move to the following address with effect from April 1, 2013 The Publisher reserves all rights herein. Reproduction in whole or ▪ Capital Markets Resolution ▪ Regulatory & Compliance in part is permitted only with the written consent of AVCJ Group Limited AVCJ Group Limited. Direct Investment Mergers & Acquisitions ISSN 1817-1648 Copyright © 2013 ▪ ▪ Unit 1401-03, Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong ▪ Fund Formation ▪ Private Equity General Tel: +852 3411 4900 General Fax: +852 3411 4999 General phone and fax numbers remain unchanged. Should you have any further queries, please do not hesitate to contact us. ABU DHABI | BEIJING | BRUSSELS | DÜSSELDORF | FRANKFURT | HONG KONG | LONDON | MILAN | MUNICH | NEW YORK PALO ALTO | PARIS | ROME | SAN FRANCISCO | SÃO PAULO | SHANGHAI | SINGAPORE | TOKYO | TORONTO | WASHINGTON, DC Number 12 | Volume 26 | March 26 2013 | avcj.com 3 shearman.com NEWS KKR exits Intelligence products. The company has established four ASIA PACIFIC major R&D platforms: genetic engineering drugs, Holdings in $537m sale photodynamic therapy drugs, drug delivery Blackstone property fund KKR has agreed to exit Japanese recruitment systems and medical diagnostics products. gets New Jersey backing services provider Intelligence Holdings as Temp Holdings buys all shares held by the private Qiming, KPCB lead $21.3m New Jersey Division of Investment plans to equity firm and company management for JPY51 commit $500 million to The Blackstone Group’s billion ($537 million). The deal is expected to be investment in Origene debut Asia real estate fund. The vehicle’s completed next month. Qiming Venture Partners and KPCB China have existence was confirmed last December. Established in 1989, Intelligence offers several led $21.3 million of Series C funding in OriGene services including permanent job placement, Technologies, a biotech company based in the job advertising media, temporary staffing and US and China. Previous investors IDG-Accel also AUSTRALASIA outsourcing. Temp Holdings is one of Japan’s participated in the round. Origene develops, largest comprehensive recruitment services manufactures and sells tools for genetics- High-profile angels back companies and is in the process of expanding its related research and diagnostics. The