Metal Intelligence Guy Hands Explains Terra Firma’S Revised PE Model Tech Advances Send China’S Robotics Start-Ups Into Uncharted Territory Page 6 Page 15

Asia’s Private Equity News Source avcj.com August 04 2015 Volume 28 Number 29

EDITOR’S VIEWPOINT Can India deliver on exits? Page 3 NEWS All-Stars, Carlyle, Cathay, Goldman Sachs, KKR, Navis, Riverside, SAIF India, SCPE, Sequoia Page 4 DEAL OF THE WEEK Cloud Farm targets China agribusiness supply chain Page 12 FUNDS IVFA wastes little time in raising $700m for India Page 13 LPs back CDIB’s China risk mitigation approach Page 13 INDUSTRY Q&A Metal intelligence Guy Hands explains Terra Firma’s revised PE model Tech advances send China’s robotics start-ups into uncharted territory Page 6 Page 15

FOCUS DEAL OF THE WEEK

Inside SoftBank 2.0 Third time’s a charm Tech giant is not abandoning early-stage Page 8 MBK agrees to sell cable TV provider CNS Page 12

AVCJ WILL SKIP AN ISSUE NEXT WEEK FOR THE SUMMER HOLIDAYS. WE RETURN ON AUGUST 18 Private Equity & Venture Forum Philippines 2015 2 September, Fairmont Makati Hotel, Manila

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Private Equity & Venture Forum Philippines 2015 KEYNOTE SPEAKER 2 September, Fairmont Makati Hotel, Manila BROCHURE NOW GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY avcjphilippines.com Unlocking the potential The inaugural AVCJ Philippines Forum will offer in-depth analysis of the risks and rewards presented to private market investors looking to commit capital to the growing economy of the Philippines. The Forum will also provide an educational platform to showcase private equity and venture capital and the potential investment opportunities that will be of interest to investors in the future. Leading GPs and LPs speakers confirmed are: AVAILABLE, Cesar V. Purisima Hans-Martin Aerts Secretary of Finance Head of Infrastructure Investments REPUBLIC OF THE PHILIPPINES Asia Pacific KEYNOTE SPEAKER APG ASSET MANAGEMENT Brian Hong Hans B. Sicat Partner President & CEO Cesar V. Purisima CVC CAPITAL PARTNERS THE PHILIPPINE STOCK EXCHANGE For the latest programme and speaker line-up, see page 3-4 REGISTER ONLINE: avcjphilippines.com download at NOW! EMAIL: [email protected] PHONE: +852 3411 4836

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2 September, Fairmont Makati Hotel, Manila Managing Editor Tim Burroughs (852) 3411 4909 Staff Writers Andrew Woodman (852) 3411 4852 Winnie Liu (852) 3411 4907 Where’s the cash? Holden Mann (852) 3411 4964 Creative Director Dicky Tang Designers REGISTER INDIA VALUE FUND ADVISORS (IVFA) HAS momentum, but the revival in investor sentiment Catherine Chau, Edith Leung, Mansfield Hor, Tony Chow now raised five funds. The first is fully liquidated towards India following last year’s general NOW! and the second is close to that mark. The third election – and the expectation that the new Senior Research Manager will deliver the bulk of the $600-700 million the government can deliver consistent growth – has Helen Lee GP expects to return to LPs this year, and the helped GPs. Where the country was once the Research Associates GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY avcjphilippines.com Herbert Yum, Jason Chong, fourth – a 2009 vintage fund, but a slow starter – pariah of Asian PE, now it is the market that Kaho Mak is still too young for exit mode. might deliver a strong vintage of funds. Senior Marketing Manager Private Equity & Venture Forum Speaking to AVCJ last week, Vishal Nevatia, However, for LPs to be fully convinced, Philippines 2015 KEYNOTE SPEAKER 2 September, Fairmont Makati Hotel, Manila Sally Yip BROCHURE NOW IVFA’s managing partner, stressed not just the managers have to return more capital, as the Circulation Administrator GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY avcjphilippines.com Unlocking the potential The inaugural AVCJ Philippines Forum will offer in-depth analysis of the risks and rewards presented to private market investors looking to commit capital to the growing economy of the Philippines. The Forum will also provide an educational platform to showcase private equity and venture number of exits but also the consistency in IVFA experience suggests. As it happens, 2015 Prudence Lau capital and the potential investment opportunities that will be of interest to investors in the future. Leading GPs and LPs speakers confirmed are: AVAILABLE, Cesar V. Purisima Hans-Martin Aerts Secretary of Finance Head of Infrastructure Investments REPUBLIC OF THE PHILIPPINES Asia Pacific APG ASSET MANAGEMENT Subscription Sales Executive KEYNOTE SPEAKER returning capital. The firm claims to have lost is already a record year for PE exits in India, Brian Hong Hans B. Sicat Partner President & CEO Cesar V. Purisima CVC CAPITAL PARTNERS THE PHILIPPINE STOCK EXCHANGE For the latest programme and speaker line-up, see page 3-4 REGISTER ONLINE: avcjphilippines.com download at Jade Chan NOW! EMAIL: [email protected] PHONE: +852 3411 4836 Lead Sponsor Asia Series Sponsor money on one deal in its 15-year history, and that according to AVCJ Research. GPs generated $5.37

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Join your peers avcjphilippines.com #avcjphilippines avcjphilippines.com was a relatively small transaction in Fund I. billion in the first eight months, edging ahead of Manager, Delegate Sales REPUBLIC OF THE PHILIPPINES On the back of this track record, IVFA closed the $5.23 billion seen in each of 2012 and 2013. Pauline Chen its fifth fund within eight months at the hard cap In addition, six PE-backed IPOs have delivered Director, Business Development of $700 million. The GP is the first in the current proceeds of $389.8 million, less than half the Darryl Mag wave of India-focused managers to announce a 2012 figure but still more than twice the total Leading GPs and LPs speakers confirmed are: Manager, Business Development final close, although Everstone Capital is unlikely for 2013 and 2014 combined. A handful of other Anil Nathani, Samuel Lau to be far behind. It remains to be seen what portfolio companies have submitted filings and Sales Coordinator Hans-Martin Aerts Cosette V. Canilao happens to the half dozen or so still in the market. are at varying degrees of readiness to go public. Debbie Koo Head of Infrastructure Executive Director India-focused managers have raised $2.99 Some LPs privately express skepticism as to Conference Managers Investments Asia Pacific PUBLIC-PRIVATE PARTNERSHIP billion so far this year, including incremental and whether certain India-focused private equity Jonathon Cohen, Sarah Doyle, APG ASSET MANAGEMENT CENTER final closes. With several months still to run, the firms looking to raise new funds will deliver. Too Conference Administrator 2015 total is already the highest seen since 2011. many investments remain underwater from the Amelie Poon Over one third of this capital has gone to pre-global financial crisis boom period. But they Conference Coordinator Fiona Keung, Jovial Chung venture capital firms, or to be more specific, three remain hopeful that a leaner, more sophisticated VC firms: Nexus Capital Partners, SAIF Partners industry will emerge from the ashes. Maybe it Publishing Director Todd Freeland Hans B. Sicat and Accel Partners. With a few more closes already is. Allen Lee Director General, Private Sector President & CEO expected before the end of the year, 2015 could Operations Department THE PHILIPPINE STOCK EXCHANGE surpass 2008 as the biggest ever for venture ASIAN DEVELOPMENT BANK fundraising. This is perhaps unsurprising, given Incisive Media the amounts of capital being deployed in the Tim Burroughs Unit 1401 Devon House, Taikoo Place country’s e-commerce market. Managing Editor 979 King’s Road, Quarry Bay, Hong Kong PE cannot claim to have the same kind of Asian Venture Capital Journal T. (852) 3411-4900 View the full list of speakers at avcjphilippines.com F. (852) 3411-4999 E. [email protected] India private equity exits by type URL. avcj.com GROUP RATES are available for three or more bookings, contact us now! Beijing Representative Office 6,000 150 No.1-2-(2)-B-A554, 1st Building, ONLINE: avcjphilippines.com EMAIL: [email protected] PHONE: +852 3411 4836 No.66 Nanshatan, 5,000 Chaoyang District, Beijing, People’s Republic of China 120 T. (86) 10 5869 6203 4,000 F. (86) 10 5869 6205 Lead Sponsor Asia Series Sponsor E. [email protected] 3,000 90 Exits

US$ million 2,000 The Publisher reserves all rights herein. Reproduction in whole or 60 in part is permitted only with the written consent of 1,000 AVCJ Group Limited. ISSN 1817-1648 Copyright © 2015 0 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Co-Sponsor Legal Sponsor YTD IPO Open market Share buyback Trade sale No. of exits Source: AVCJ Research

Join your peers avcjphilippines.com #avcjphilippines Number 29 | Volume 28 | August 04 2015 | avcj.com 3 NEWS

All-Stars leads $300m billion ($2.8 billion). The company is responsible AUSTRALASIA for ground services for around 229 million round for Tujia passengers and 4.1 million metric tons of cargo Riverside invests in IPAR All-Stars Investment has led a $300 million new each year. PAI bought a 98% stake in Swissport funding round for Tujia.com, valuing the Chinese for CHF1.2 billion in 2011. Rehabilitation vacation-rental website at more than $1 billion. The Riverside Company has acquired in IPAR The Ascott, a serviced residence business unit of New Horizon backs B2B Rehabilitation, an Australia-based provider Singapore-listed CapitaLand, has agreed to invest of injury prevention and management and S$67.69 million ($50 million) in the company plastics trading platform rehabilitation services that minimize the impact as part of the round. Other contributions came New Horizon Capital has led a $36 million Series of workplace injury and illness. The PE firm wants from existing backers Lightspeed China Partners, B round of funding for Zhaosuliao.com, a Chinese to take IPAR into adjacent industries through GGV Capital, CDH Investments, Qiming Venture B2B plastics trading platform. GX Capital, Qiming organic and inorganic expansion. Venture Partners, IDG Capital Partners and angel investor Zhen Shun Fund also participated. NAB to invest $36m in fintech start-ups Online liquor retailer National Australia Bank (NAB) will set up a A$50 Jiuxian gets another $81m million ($36 million) fund to invest in domestic Jiuxian.com, a VC-backed e-commerce site that and overseas start-ups that help enhance its sells wines and spirits, has raised RMB500 million financial services product offerings. Areas of ($81 million) in a new round of funding. Chinese particular interest include mobile platforms, asset management firm Min Xiang Wealth payments, and data and analytics. Management and other unnamed investors Partners and China Broadband Capital, plus committed capital. Australia’s Autopilot raises strategic players Ctrip International. The new round of funding will be used to Mobile ad platform OptAim $7m round expand Tujia’s online-to-offline (O2O) business, US cloud computing firm Salesforce has a led $7 improve user experience via technology acquired by iClick million round for Australian marketing platform upgrades, and for branding and marketing Online digital marketing platform iClick has Autopilot, alongside Stage1 Capital. Existing purposes. Ascott will also form a joint venture acquired mobile advertising solutions provider investors include Rembrandt Venture Partners, with Tujia, which will operate and franchise OptAim. Bertelsmann Asia Investments is an Blackbird Ventures, Southern Cross Venture serviced apartments in China. Ascott will make investor in both companies, while iClick has also Partners, Garnett Ventures and Tim Draper. more than 400,000 apartments available on Tujia’s received capital from SSG Capital Partners and website by the end of 2015. Sumitomo Corporation. GREATER CHINA Much like Homeaway and Airbnb, Tujia operates a platform on which owners can post China Rapid Finance gets properties to be hired out as vacation or business $35m Series C round Carlyle commits $85m to rentals. It takes a commission off the top of the rental price. However, the company differs Broadline Capital has led a $35 million Series C Ubox from its US-based counterparts in that there is a round of funding for peer-to-peer (P2P) lending The Carlyle Group has invested RMB530 million property management business bolted on to its platform China Rapid Finance. The investment ($85 million) in Beijing Ubox Technology & website. gives the business a pre-money valuation of $1 Trade, a vending machine operator in China. The billion. Additional capital was raised through UBS, investment was made via Carlyle Beijing Partners participants included a global family office. Fund, the firm’s renminbi-denominated fund Ajisen, Hina back Baidu set up with the support of the Beijing municipal Minsheng Investment to government. food-ordering platform Ajisen Holdings, a Chinese fast casual restaurant acquire Sirius for $2.2b Unigroup seeks Xueda re- chain operator, has teamed up with The Hina Bermuda-based White Mountains Insurance Group and its affiliate Hanking Group to invest Group has agreed to sell its subsidiary Sirius listing in Shenzhen up to $70 million in Baidu Takeout Delivery, an International Insurance Group to China Xueda Education Group, a Chinese tutoring online food delivery ordering platform run by the Mingsheng Investment (CMI) for $2.2 billion. CMI services provider, has agreed to be privatized by Chinese search giant. will pay cash representing 127% of Sirius’ current Xiamen Insight Investment, a Shenzhen-listed shareholder equity, plus $10 million. shell company controlled by Tsinghua Unigroup, China’s HNA buys Swissport for approximately $368.8 million. Xueda will Cathay PE invests in leave the New York Stock Exchange and re-list in from PAI Shenzhen via a backdoor listing. Xiamen Insight China’s HNA Group has agreed to buy ground France’s Datawords will raise RMB5.5 billion ($886 million) to finance handling and cargo services provider Swissport Sino-French GP Cathay Capital Private Equity the takeover and other projects. International from PAI Partners for CHF2.7 has led a new round of funding for Datawords,

4 avcj.com | August 04 2015 | Volume 28 | Number 29 NEWS

a digital marketing service provider based in Navis exits ECO Industrial SAIF, Tiger commit $50m to France. Paris-based PE firm Keensight Capital, French investment firm Bpifrance as well as to Beijing Capital discount start-up Capzanine also participated. Navis Capital Partners sold ECO Industrial Paytm has joined SAIF Partners and Tiger Global Environmental Engineering, a Singapore-based to lead a $50 million round of funding for Little, Sequoia leads round for hazardous waste management firm, to Beijing an Indian online discount start-up. Little is an Capital Group (BCG) for S$246 million ($179 app-based mobile-first marketplace offering app tech developer million). The PE firm bought a controlling interest deals with offline merchants such as restaurants, Sequoia Capital has led a $12.5 million Series in ECO in 2007 and claims to have helped movies, hotels, salons, gyms, and spas. B round for Easemob.com, a Chinese provider the company shift away from general waste of mobile communication services, with management and invested heavily in industrial PE-backed HealthCare participation from SIG China and Matrix Partners and hazardous waste management, sewage China. Founded in 2013, Easemob is a platform- sludge treatment, and the recovery of solvents Global set for India IPO as-a-service (PaaS) operator that provides and other complex recyclable wastes. HealthCare Global Enterprises (HCG), an India- infrastructure required to create and manage a A year after the investment, ECO also won based cancer care hospital chain, has filed mobile app. the exclusive rights to provide sewage sludge for an IPO, which will facilitate partial exits for treatment services to the Public Utilities Board Premji Invest, India Build Out Fund and Temasek Holdings. The firm will offer about 31 million SOUTH ASIA shares, including a fresh issue of 11.6 million shares. Pricing terms have yet to be set. KKR to invest $150m in polyester manufacturer Tata joins group buying KKR has agreed to invest $150 million in JBF, an Blackstone’s Agile stake India-based polyester products manufacturer. A consortium comprising Igarashi Electric Works The PE firm will take a 20% stake in listed entity (IEW), Mape Securities and Tata Capital Growth JBF Industries and subscribe to convertible Fund I have bought The Blackstone Group’s 97.9% preference shares that give it 14.5% of the voting stake in Agile Electric, an Indian electric motor rights in JBF Global, the company’s international manufacturer. The deal is worth $106.4 million. business. of Singapore on a 10-year contract, and built a dedicated facility with six incineration trains. Then SAIF backs watch BNP Paribas to acquire PE- in 2012, ECO commissioned a larger, hazardous waste-to-energy plant. components supplier backed Sharekhan Nick Bloy, managing partner at Navis, said SAIF Partners India has invested INR300 million French bank BNP Paribas has agreed to acquire that ECO’s success is in part due to “the strict and ($4.7 million) in KDDL, an Indian manufacturer of Indian retail brokerage Sharekhan from PE transparent regulatory and compliance regime watch components. The PE firm will subscribe to backers including General Atlantic. It will in Singapore which means that only the best just over one million shares at INR297.5 apiece, reportedly pay INR22 billion ($343 million) for a firms can survive and prosper.” He believes the giving it a 10% stake in the business. 100% stake. The deal comes three months after company’s capabilities are increasingly relevant in Indian regulators rejected a bid by Baring Private other parts of Asia as governments start to crack Anjali Bansal hired as Equity Asia to buy IDFC’s interest in the company. down on environmental degradation caused from poor enforcement of waste management partner at TPG Growth Furniture retailer standards. TPG Growth - the mid-market growth equity platform of TPG Capital - has hired Anjali Bansal Pepperfry raises $100m as partner and managing director. Bansal will be Online furniture retailer Pepperfry has raised having purchased stakes from Tata Steel, Tata based in Mumbai where she will focus on human $100 million in Series D funding from a group of Motors, The Indian Hotels Company and Tata resources in Asia and Africa. investors including Goldman Sachs and Zodius International. Technology Fund. Existing backers Bertelsmann SOUTHEAST ASIA India Investments and Norwest Venture Partners SCPE, IFC, ADB back also participated in the round. affordable housing JV Golden Gate in first close TOF invests $55m in Tata Standard Chartered Private Equity (SCPE), the International Finance Corporation (IFC) and the on SE Asia VC fund Projects Asian Development Bank (ADB) have formed an Singapore-based Golden Gate Ventures has The Tata Opportunities Fund (TOF) has invested affordable housing joint venture with Indian real reached a first close of $35 million on its second INR3.35 billion ($55 million) in Tata Group’s estate giant Shapoorji Pallonji. The venture will Southeast Asia-focused fund, Golden Gate engineering, procurement and construction receive a capital commitment of $200 million Ventures Fund II. Major investors in the fund (EPC) services unit, Tata Projects. TOF has a and will develop about 20 million square feet of include Temasek Holdings and Facebook co- significant minority interest in the business, housing. founder Eduardo Saverin.

Number 29 | Volume 28 | August 04 2015 | avcj.com 5 COVER STORY [email protected] Rise of the machines China’s robotics start-ups are riding a wave of innovation and exploring many previously unexpected paths. As the scope of applications broadens, they need to keep up the pace

“PEPPER, LET’S HAVE SOME TEA!” AN would rather have a machine to take care of their The high volume of robotics start-ups under interviewer suggests. His companion – the home or family. The demand is there.” development would not be possible without humanoid robot Pepper, designed by Japanese Ninebot is one of numerous Chinese start- recent technological advances. In particular, firm Aldebaran Robotics – swivels its head to look ups bringing robotics technology to unlikely software has been critically important in driving up at him. “I don’t know if you realize, but I can’t applications. Another is Shenzhen-based Insight the creation of new and creative uses for drink tea. I would break,” Pepper responds. Robotics, which manufactures automated fire hardware designs that are, in many cases, not With its self-deprecating personality, large detection stations for forestry departments, that different than robotics that have been used round eyes, and perpetually grinning mouth, and also creates agricultural monitoring tools. for years in military or industrial capacities. Pepper is designed to convey gentleness and The company was incubated by the Hong “This is not a brand new area. It’s been in simulate human emotions – the opposite of Kong Science & Technology Parks Corporation development for many years. It’s just that it hasn’t decades of science-fiction images of robots as and then raised a $2 million Series A round in made it into the home,” says Jenny Lee, managing cold mechanical men. When Alibaba Group and November 2014 from Bright Success Capital, partner at GGV Capital. “It’s used in hospitals, Foxconn Technology Group announced a joint Caldera Pacific Capital Partners and Radiant it’s used in factories, it’s used in industrial investment of JPY29 billion ($233 million) in Venture Capital. applications where it’s too dangerous to send Aldebaran’s parent, SoftBank Robotics Holding The company’s goal is to identify jobs that a man in. All that relies on core components Corp, one of their goals was to bring Pepper to machines are naturally better at. Fire detection and those have been around for a long time. world markets as a helper for the elderly, families and businesses. While photogenic robots such as Pepper may “Each robot has its own hardware, and where warm the hearts of ordinary consumers, it and its brethren such as ASIMO represent just the do you make that? In China. Why? Because it’s tip of the robotics iceberg. A wave of start-ups, many with VC backing, is taking advantage of cheaper, faster. And software-wise, where would recent advances in hardware and software to it be strong? Most likely in the US, certainly for design robots for use in a wide variety of settings. Despite largely flying under consumers’ radar, the most sophisticated ones” – Raymond Yang these companies are likely to end up reshaping the systems that we take for granted. is an obvious choice, since machines do not tire So when we put that together into a home Big in China? or become distracted. Insight’s devices can free application, it’s just extracting those technologies China’s robotics sector is still relatively small, human labor to do things that people are better and components and putting it in a form that but investor interest has been picking up pace at, such as making decisions on how to respond addresses the current need.” recently. AVCJ Research shows that of the $149 to a fire. million deployed across 20 total deals in the “The robot doesn’t know if it’s a good fire, or a Essential advances segment since 2010, $107 million has gone into bad fire, or an intentional fire, or an out of control Visual processing has been an essential part five transactions this year alone. fire,” says Erica Young, Insight’s chief product of robotic software development. Machines Ninebot accounts for three quarters of the officer. “But when we look at it, we can say that’s that operate independently need to be able 2015 total. In April, WestSummit Capital, Shunwei a controlled burn, that’s intentional. It’s not that to understand the world around them, and Capital Partners, and Sequoia Capital backed the every fire needs to be put out, it’s that we need for companies like Insight Robotics, which automated scooter maker, which went on to to be aware of every fire and then we can make builds devices that rely on visual scanning, it is buy US-based rival Segway Personal Transport. an intelligent decision about what to do about it.” especially pressing that a robot knows what it is Raymond Yang, WestSummit’s managing partner, Robotics start-ups are targeting the business looking at. Insight’s software allows its automated said at the time that the firm sees great promise sector as well. Simbe Robotics, a US-founded watchtowers to look for clues of fires in progress. in the robotics sector. He still believes that company based in Shenzhen, is currently Robots that move on their own need demographic shifts will make the population developing an autonomous robot to manage another part of the toolkit: mapping. Without ever more accepting of robotic assistance. in-store inventory work for supermarkets and understanding the shape of the space that “Particularly in China, there’s a growing middle other consumer goods stores. The company has it is operating in, a robot’s functionality is class, which means these kinds of things have been supported by Shenzhen-based accelerator constrained. IRobot’s popular Roomba series become much more affordable,” says Yang. “Also, HAX, which has other robotics ventures such as of self-propelled vacuum cleaners is a good people now live at a very fast pace, so they Petronics, which makes self-driving toys for cats. example of the advances in this space: early

6 avcj.com | August 04 2015 | Volume 28 | Number 29 COVER STORY [email protected]

incarnations would build an internal model of a emotion to your customers,” says WestSummit’s the first to have something cool,” he explains. room by recording the positions of obstacles, but Yang. “A machine will not have this kind of One major opportunity in this space is more recent versions use a radar-like technology problem.” cross-border collaboration. WestSummit is to help the unit create its map. Another positive factor is the Chinese particularly enthusiastic about the possibilities Growing storage capacities have also government’s willingness to adopt new here; rather than seeing the US and China in increased functionality. Internal storage technology in its own operations. Insight’s competition over hardware, the company wants allows robots to learn and recall previous forestry monitors are a case study in the to see Chinese and US companies sharing their experiences rather than being limited to their government’s ability to move swiftly to particular strengths. initial programming, which can deepen their encourage positive technological developments. “Each robot has its own hardware, and where understanding of their environment and their “In my opinion, the Chinese government is do you make that? In China. Why? Because it is tasks. Machines could even learn new tasks, a job a lot more progressive in terms of testing and cheaper, faster,” says Yang. “And software-wise, made easier when paired with visual processing adopting new technologies for these types of where would it be strong? Most likely in the US, advances. applications, and I think it’s in part because they certainly for the most sophisticated ones.” “If you had a robot helper, and you had to use don’t have to answer to anyone,” says Insight’s This type of collaboration could be a major a screen interface to explain to it how you liked Young. source of robotics innovation, with Chinese- your laundry folded, that would be a real pain,” says Insight’s Young. “But if you could say, ‘Watch VC robotics investments in China me, this is how I fold my laundry,’ and you have this collaborative learning interaction, then it’s 120 5 much more natural.” 100 Beyond increased onboard storage, robot 4 intelligence can be further enhanced through 80 internet connectivity. Being connected to the 60 3 internet means that robots are not restricted to Deals US$ million 40 what they learn on their own, but can download 2 updates or search for solutions to a problem that 20 they cannot solve independently. 0 1 While technological innovation is limited only 2010 2011 2012 2013 2014 2015 YTD by the imagination and can strike at any time, No. of deals Amount invested (US$m) business success has to wait for when the market Source: AVCJ Research is ready. Hugh Mason, a co-founder of Singapore- based incubator JFDI.Asia, observes that even Apple could not make a go of its first attempt at Of course, the government’s lack of made hardware interacting with US-developed tablet computers in the 1980s. accountability also means that its support cannot software. Brad Bogolea, the co-founder of “The Apple Newton had more or less the be counted on. A bureaucrat that approved the HAX-supported Simbe, believes the exploding functionality of an iPad, but people weren’t ready purchase of a start-up’s technology might be diversity in robotics applications is only the for it. It was too much of a leap to have a portable replaced by someone with a less favorable view beginning of a wave of innovation that will see office in your hand that was paperless,” says of the company, while job cuts in certain areas teh technology grow far beyond their current Mason. “But when the iPad launched, the market could create local tensions. limitations. was ripe, and we completely re-conceptualized Price is another issue that could slow “The state of robotics today reminds me of how we would work.” adoption rates. Replacing expensive human labor PCs in the early 1990s, or mobile in the early part Robotics manufacturers targeting the China might be an attractive proposition, but faced of the last decade,” he says. “We are starting to see market may need to be prepared for a similar with a prohibitive price tag, employers are still more and more applications, and more and more challenge when it comes to introducing their likely to balk and stick with methods that they platformization. When someone wants to build a products. But in many ways the market could be know and understand. Start-ups will have to find robot today, they don’t necessarily have to build ready for robots in a way that it was not ready for ways to economize on cost. everything themselves.” other innovations that hit before their time. Bogolea believes that tools like the Robotic One factor holding back adoption of Cross-border angle Operating System (ROS), a platform for building automation in industry has been China’s low cost Another limiting factor has to do with cultural robotics applications, can help robots expand of labor. But with wages rising, manufacturers are difference between the US and China; Chinese beyond the specialized-use devices that are the increasingly open to investing in machines that consumers are more reluctant, overall, than their current model. will never demand a raise. Service positions are US counterparts to pick up an unproven piece Pepper could be an early sign of Bogolea’s coming under similar pressure; as robots become of technology. This reluctance may be due to expectations being fulfilled. The robot has been capable of tasks that previously required humans, China’s comparatively recent transition into a developed with an open model in mind, and employers may become more willing to consider consumer society. Whatever the cause, though, its designers hope that developers will expand replacing temperamental employees. HAX General Partner Benjamin Joffe says it means its capabilities beyond what even they thought “With humans, you have a working attitude, greater challenges for technology developers. possible. Thanks to the efforts of today’s robotics you have your working skill, you have your “There’s not as many early adopters as there entrepreneurs, future generations might see working hours; you may get sick, you may have are in the US, where people are willing to buy robots become as ubiquitous as cell phones, and a headache that day, and you may pass that things even if they don’t work perfectly, just to be just as useful.

Number 29 | Volume 28 | August 04 2015 | avcj.com 7 FOCUS [email protected] Venture legacy SoftBank’s direct investment activity has shifted towards later-stage deals and it is expected to remain there. But the Japanese technology giant has not given up on its VC affiliates and subsidiaries in Asia

REPORTS OF THE DEATH OF SOFTBANK’S recreate SoftBank’s earlier success with Alibaba. venture capital activities are greatly exaggerated. “A lot of this change It initially invested $20 million in Alibaba 15 years Fears that the Japanese telecom giant’s will ago and still holds a 32% stake worth around $63 withdraw from early-stage bets surfaced last is to do with Son’s billion. month in response to claims that US-based “A lot of this change is to do with the Son’s – Neil Juggins SoftBank Capital would be wound down. succession plan” succession plan, and Arora has come in to beef In an interview with US technology news site up the returns they have been getting,” Juggins Re/code, Nikesh Arora – president and COO of brand. Is the change in strategy likely to diminish explains. “Son did a fantastic job in identifying SoftBank Corp, and heir apparent to Masayoshi the Japanese company’s future role in Asian Alibaba, but it has got to be said that there Son, the company’s founder – announced plans venture capital? haven’t been many other big hitters.” to move away from early-stage investments He adds that for Son, Arora – with his internet and focus on backing more mature start-ups. Going large experience at Google, his telecoms experience Separately, Joe Medved, a partner with SoftBank Based on events of the last year, it should come with T-Mobile, and his early investment Capital in the US, was quoted as saying his firm as little surprise that SoftBank is focusing more experience Fidelity Investments – is the ideal will not make any new investments out of its on late-stage investments. In past nine months person to drive performance. However, to latest $100 million vehicle or raise any new funds. alone SoftBank has led the charge on no fewer improve that hit rate Arora is seeking targeting SoftBank Capital has not been available for than seven late-stage VC rounds, each valued larger, less risky investments involving category comment since these interviews. However, while at more than $100 million. In doing so, it has leaders with proven business models. SoftBank Group declines to talk about SoftBank rubbed shoulders with other big ticket players “If he is putting his name to every one of Capital directly, it has confirmed a change like US-based Tiger Global Management and these investments, Arora needs to be clear he in investment strategy. This new approach is Falcon Edge Capital, and government-backed is going to be getting more hits than misses,” referred to as SoftBank 2.0. investors such as Singapore’s Temasek Holdings. Juggins says. “We increasingly believe that our future lies in The majority of these deals have taken This change of focus does not necessarily a smaller universe of companies, which pioneer place in Asia, and more than half of them were mean there will be fewer early-stage investments from SoftBank in Asia. For his part, Arora has Main SoftBank Group Corp. investments 2014-2015 made it clear that deals coming out of the parent company – or at least from SoftBank Group USA Date Investee Country Business Investment overview (the successor to SIMI) – will be the exception October, 2014 Tokopedia Indonesia Online marketplace $100m round, led by SoftBank rather than the rule. October, 2014 Ola India Taxi-booking platform $210m round, led by SoftBank However, it is worth noting that there are at least three early-stage investors bearing the October, 2014 Snapdeal India Online marketplace Total investment of $627m SoftBank name that still offer the company December, 2014 GrabTaxi India Taxi-booking platform Total investment of $250m varying degree of exposure to the space: December, 2014 Housing India House-hunting platform $90m round, led by SoftBank SoftBank Venture Korea; SoftBank China and India January, 2015 Kuaidi Dache China Taxi-booking platform $600m round, led by SoftBank Holdings (SBCI); and SBCVC (formerly SoftBank (now Didi Kuaidi) China Venture Capital). April, 2015 Oravel Stays India Room-booking platform $100m round, led by SoftBank The first of these – SBVK – is directly Source: SoftBank controlled by SoftBank and raises capital from the both the parent company and third party breakthrough innovation and have the potential announced in October 2014, a month after investors. It was launched in 2000, and has raised to be market and category leaders,” the company Arora, a former Google executive, was hired to 13 funds during its lifetime. The most recent said in a recent statement. “We also think head up head up the newly formed investment vehicle, SB Global Star Fund, was launched in having a diversified portfolio including mature unit SoftBank Internet & Media Inc.(SIMI) prior March of this year with a target of KRW120 billion companies and in some cases, exceptional to being promoted to COO. SoftBank backed ($107 million). The latter two are affiliates with early-stage companies, is the key to SoftBank’s e-commerce firm Tokopedia in Indonesia as which SoftBank maintains links as an LP in their long-term viability.” well as taxi-booking app Ola and e-commerce funds. It is not clear what SoftBank Capital’s marketplace Snapdeal in India. SBCI’s maiden fund, Bodhi Investments, ultimate fate will be. The VC unit – which is not Neil Juggins, executive director with Haitong came to market in 2006 with a view to making a subsidiary, but an affiliate – could yet re-brand International who tracks the firm, says part of the investments in China, India and Southeast Asia. It under another name. However, SoftBank Capital reason for Arora being brought is Son’s desire reached a final close of $105 million the following is just one of many VCs carrying the SoftBank to hand over the business to someone who can year with commitments from SoftBank, Cisco

8 avcj.com | August 04 2015 | Volume 28 | Number 29 FOCUS [email protected]

Systems and Deutsche Bank. The GP has since raise two more vehicles: Philippines-focused Investment units affiliated with/controlled by SoftBank Group Corp. Kaikaku Fund, which launched in January last Relationship with Softbank year with backing from SoftBank and IP Ventures Year established Name Country Group Corp. Group; and Indonesia-focused SB ISAT fund, 2014 SoftBank Group US (formerly SoftBank USA Wholly-owned subsidiary which reached a final close of $50 million in Internet & Media, Inc) May 2014, having received commitments from 2006 SoftBank China and India Holdings USA Affiliate SoftBank and Indonesian telecom giant Indosat. 2000 SoftBank Ventures Korea Korea Wholly-owned subsidiary SBCVC is the oldest, having been set up in 2000 SoftBank China Venture Capital (SBCVC) China Affiliate 1999, and has since launched five funds. SoftBank initially provided the bulk of the LP commitments 1995 SoftBank Capital USA Affiliate but it now accounts for less than 20% of the Source: SoftBank latest fund’s $400 million corpus. “We are an independent manager but we vehicles from its own LP base. Indeed, in 2011, commercialize innovations in areas such as the are affiliated with SoftBank,” explains Chauncey there was a spin-out from the spin-out as SAIF’s internet-of-things (IOT), connected vehicles, Shey, managing partner at SBCVC. “We are mainly India team struck out on its own. digital marketing, and healthcare. Start-ups will focused just on Greater China, making early-stage However, SBCVC’s Shey does not anticipate receive backing if they are expected to benefit investments in the IT-related companies, though any change regarding SoftBank’s Asian affiliates, SoftBank’s own ecosystem. we do some later-stage deals.” many of which still offer exposure to companies “For more than five years, SoftBank’s strategy at various stages of development. SBVC, for regarding direct venture investments has Minimal change example, was an early investor in Alibaba, while been focused on strategic and large ticket Not all of SoftBank’s investment ventures have more recently Softbank Venture Korea invested in opportunities, more than $100 million in size, and remained in the fold. In 2001, SoftBank Asia Tokopedia prior to SoftBank coming in for $100 I would not be surprised to see the continuation Infrastructure Fund was formed in collaboration million round last year. of this strategy in future, particularly in Greater with Cisco, and given a remit to invest in Recent developments also suggest the China,” says SBCVC’s Shey. technology infrastructure across the region. By early-stage money will continue to filter down “However, as a part of a group of venture the mid-2000s the GP had been renamed SAIF though other new funds and side-projects capital companies affiliated with SoftBank, we are Partners and was fully independent, raising a affiliated with SoftBank. A good example is the continuing our VC investment focus, and I don’t further two US dollar funds and several renminbi SoftBank Innovation Program launched to help think that is going to change soon.”

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Join your peers Join your peers avcjforum.com #avcjforum avcjforum.com #avcjforum DEAL OF THE WEEK [email protected] / [email protected] CNS promises PE watershed in Taiwan

MOST PE INVESTORS HAVE SECURED looked to the Taiwan authorities for greater subscribers. Far EasTone, it is an opportunity profitable exits from Taiwan’s cable television transparency and certainty on the investment to integrate these wired solutions with its own industry. Now MBK Partners has joined the club, approval process, but to no avail. wireless offerings and expand into the smart although like some of the others, the path to It remains to be seen whether promises of home market. liquidity has not been smooth. change have a lasting effect, but C.Y. Huang, MSPEA will take equity ownership of CNS The agreed sale of China Network Systems chairman of FCC Partners and founding chairman through its fourth pan-regional fund, with (CNS) for $2.3 billion, including around $1.6 of the Taiwan M&A & Private Equity Council, Far EasTone then subscribing to a bond of up billion in debt, comes after two previous deals believes a series of factors are generating forward to NT$17.12 billion ($542.6 million). The deal fell through. But MBK – which paid $1.5 billion momentum. “The government’s attitude towards structure is in itself innovative, Huang adds. There for CNS in 2006, including $840 PE is changing,” he says. are restrictions on capital from political or military million in debt and equity One factor is the Chinese sources taking equity in media groups and Far participation from co-investors government’s willingness to EasTone’s shareholder base includes funds of this – has still made money. There support companies as they description. “This is a roadblock that kills many have been dividend recaps in go overseas. The CNS deal is deals,” Huang says, but a debt-based structure addition to the impending exit entirely domestic but Huang gets around the problem. to Morgan Stanley Private Equity argues that it reflects a growing MSPEA and Far EasTone are also less likely Asia (MSPEA) and Far EasTone maturity within corporate Taiwan. to suffer the fate of CNS’ previous two would- Telecommunications. Cable TV: Popular PE choice Previously companies were be buyers. First Want Want China Holdings was The deal is significant in reluctant to team up with private blocked for anti-monopoly reasons and due to several respects. First, assuming the transaction equity, but Far EasTone is working with MSPEA as concerns about its founder’s supposed pro- goes through (regulatory approval has yet to it looks to capitalize on digital convergence. Beijing sympathies. Then food conglomerate Ting be granted), it will be Taiwan’s first PE buyout of CNS is Taiwan’s largest cable operator, Hsin International Group’s bid was ended by a reasonable size since 2010. In the interim, there providing cable and digital television, broadband tainted cooking oil scandal that has set back its has been a crisis of confidence as the PE industry internet and other services to nearly 1.29 million entire business. Cloud Farm brings China agribusiness online

CHINESE PREMIER LI KEQIANG’S “INTERNEt such as fertilizers, pesticides and seeds from 400 “Buying cheap isn’t the ultimate aim. Farmers plus” policy is an attempt to rejuvenate traditional supplies, wants to cut these costs. are more concerned as to whether they can sell industries by grafting modern technology “To sell products to farmers, the first thing you products at higher prices. So Cloud Farm will onto their tired business models. Agriculture is must do is gain their trust. In the past, farmers develop an agricultural products trading platform. thought to hold enormous potential for cloud paid distributors six months after purchase. This They will collect data on what farmers use to computing and big data, but VC investment wasn’t due to a lack of cash; they grow their crops and it can be opportunities are still at a nascent stage. feared being sold something shared with manufacturers and Domestic GP Chunxiao Capital is looking to fake,” He says. local authorities as part of efforts steal a march on the competition, committing Cloud Farm has created to improve productivity,” He says. nearly RMB100 million ($16 million) in funding a network of more than 300 Large, publicly-traded to online agricultural products shopping mall centers and 25,000 village service agricultural corporations and Cloud Farm. The two-year-old start-up previously stations across 13 provinces, internet giants such as Alibaba received $10 million from Legend Holdings. including core agricultural sites Group and JD.com are also trying “Traditionally, farmers risked buying fake in the provinces of Shandong, Agribusiness: Efficiency issues to expand into the rural internet products from middlemen, which posed a Henan, Jiangsu and Anhui. sector. However, He says the threat to food safety,” says Wen He, venture Employees in each service station receive – former are generally reluctant to enter new areas partner at Chunxiao. “We identified agricultural relatively lower – commissions for taking orders, where there is no guarantee of immediate profit, e-commerce as an area where we could integrate processing payments and making deliveries. while the latter have little or no sector expertise. upstream and downstream operations in order to The platform extends into overseas markets, “In the B2C sector, consumers are easily improve efficiency and information transparency.” giving local companies access to products from influenced by big brands, so they only go Manufacturers typically sell agricultural the US, the Netherlands and Israel. There are also to Taobao or Tmall,” He adds. “But in B2B products through regional agents, with farmers plans to create an agriculture-focused incubation agribusiness, farmers are very rational users. They paying a 15%-45% mark-up. Cloud Farm, which program as well as a series of platforms targeting will choose the platforms with the best services offers more than 2,800 agricultural products, professional services and rural finance. that sell products at reasonable prices.”

12 avcj.com | August 04 2015 | Volume 28 | Number 29 FUNDS [email protected] IVFA sees slow turn in India sentiment

A HOST OF INDIA-FOCUSED GPS ARE Fund-of-funds featured prominently in Fund IV, and it was only $1 million,” he says. currently in the market, looking to raise funds which closed in 2009 when many LPs were still Part of the reason for this is IVFA’s focus on on the back of improved investor sentiment adjusting to the global financial crisis. This has majority transactions, which account for 70-80% following the election of reformist Prime Minister abated in the new vehicle, with pension funds of investments. The strategy is unchanged for Narendra Modi last year. and sovereign wealth funds contributing most of Fund V. On a sector basis, IT services is the only India Value Fund Advisors (IVFA) has become the capital. addition, joining the core areas of healthcare, the first to complete its fundraising, announcing Fund IV was also $700 million in size, but IVFA financial services and consumer. a final close for Indium V last week at the hard handed back $100 million to LPs IVFA targets profitable cap of $700 million. The process took less than because the pace of investment business with revenues of eight months and demand exceeded $800 was slower than expected: in $25-100 million that need to million, well beyond the $600 million target. the first three years, only about be institutionalized. Nevatia However, Vishal Nevatia, managing partner at 10% of the corpus was deployed. estimates that three quarters IVFA, is wary of exaggerating the optimism. “It has As such, the portfolio is too of entrepreneurs struggle to gone from negative to slightly positive,” he says. immature to be generating much manage this transition, so IVFA “A lot of LPs said no to us because they aren’t in the way of exits. creates a partnership between ready to invest in India, due to concerns about Most of the $700-800 million India: Back in LPs’ good books the entrepreneur, who retains 20- the macroeconomic situation or past PE returns. that IVFA expects to have 30%, a professional management It will take another year of better performance for distributed by the end of 2015 is from Fund team brought in by IVFA, which has 20-30%, and the situation to really improve.” III. Nevatia identifies Mahindra Castings, Atria then IVFA with 50-60%. There are 25 LPs in IVFA’s fifth fund, with Convergence Technologies and DM Healthcare as “Typically, the entrepreneur becomes non- existing backers accounting for 50% of the LP big winners – each is expected to deliver a return executive chairman, and continues to be the base and 60% of the capital commitments. New of 5x or more – but also stresses the firm’s track face of the business,” he explains. “He plays a investors are said to include Australia’s Future record in minimizing losses. “We have lost money supporting role as the professional CEO and IVFA Fund and Canada Pension Plan Investment Board. on only one transaction to date; it was in Fund I take charge of the business going forward.” CDIB’s different middle-market play

IT WAS 2008 AND CDIB CAPITAL, THE PE capital at its disposal from fund-of-funds, family in the US and Europe and is launching its arm of Taiwan’s China Development Financial offices, sovereign wealth funds, insurers and own brand in China; and Jiangyin Tongli (CDF), had been looking at potential investments corporations. Optoelectronic Technology, which makes in the online gaming space. However, most Lionel de Saint-Exupery, president and CEO protective films for the screens flat panel devices of the companies it found were overvalued of CDIB Capital, sees this flexibility as a virtue in like smart phones. or deemed too risky because their livelihoods a challenging environment. The group pursues Two earlier deals – online-to-offline furniture depended on a single game. particular geographic corridors based on where retailer Meilele and specialty beverage retailer A solution came in the form of WeMade it has offices – Taiwan-China, Korea-China, the The Coffee Bean & Tea Leaf – were warehoused Entertainment. Based in Korea, US-China – and seeks to offer ahead of the fundraise. It was because of these it was the largest developer for portfolio companies more than transactions, and the desire not to be diluted, Shanda Games, China’s top online just a domestic strategy. prompted LPs to imposed a hard cap of $400 games publisher. CDIB took an “There has been volatility million, below the original target of $500 80% stake, saw revenue increase in China and some sectors are million. by more than 100% over a three- grossly overvalued in our view,” CDIB targets businesses with enterprise values year period, and listed WeMade de Saint-Exupery says. “If we of $100-500 million and writes equity checks of on KOSDAQ in early 2012. The were just doing TMT (technology, $25-75 million. In this space, de Saint-Exupery return was 3.3x. CDIB: Dry powder for China media and telecom) and notes, direct rivals are scarce. This investment thesis – consumer, it would be extremely “There are large pan-regional funds covering backing not only Chinese companies but also difficult to put capital to work. We can find value a similar footprint and with similar ideas, but they overseas businesses that serve as proxies for elsewhere, such as advanced manufacturing are looking for much bigger fish,” he explains. “In Chinese growth – is the strategy for CDIB’s debut where China is moving up the value chain.” our weight class, the competitors vary because Asian fund, which has closed at $405 million. The The two most recent investments fit they tend to be single-country players, and we unit was set up in 2006 and committed capital this remit: Huatong Industrial, a furniture can do more in terms of institutionalizing them from CDF’s balance sheet. It now has third-party manufacturer that supplies leading retailers and helping them go cross-border.”

Number 29 | Volume 28 | August 04 2015 | avcj.com 13 Customized Research Report Asian Private Equity Data Made Simple

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To understand how AVCJ Research can help you with your data needs, please call: 852-3411 4961 or email [email protected] avcj.com TERRA FIRMA | INDUSTRY Q&A Customized Research Report [email protected] Terra Firma rethought Asian Private Equity As Terra Firma prepares to return to market, Guy Hands, the firm’s founder and chairman, explains why the changing GP-LP Data Made Simple dynamic requires more flexibility on structures and fees, and GPs with more skin in the game Q: What is your view of the global going to invest?’ We can take our which means we will act with a PE investment environment? time and deploy capital in an lot of discipline. A: There are two big issues. First, opportunistic way. you’ve got more money coming Q: You have greater flexibility in into private equity and you Q: Will other GPs follow suit? fund structure. Will there be have more LPs looking to invest A: I don’t think they will follow more flexibility in strategy? directly or do co-investments. us. There are two reasons for A: We look at infrastructure, AVCJ Research can provide Put these together and there’s this. First of all, the big firms residential real estate and private your firm with timely and about $2 trillion in dry powder have hundreds and in some equity – the same areas we’ve globally. Second, the number of cases thousands of employees, been looking at for the last 20 accurate research support deals completed by the private and they need to feed the years. It’s quite opportunistic. equity community is the lowest machine. If they are publicly- At the moment we think the to help you simplify and in about 13 years. Although traded they also need to feed residential real estate sector in expedite your workflow. We M&A activity is increasing, the their shareholders. They can’t Europe offers good value. It is percentage of transactions afford not to operate under “We are putting difficult to say anything is cheap conduct in-depth research involving private equity buyers a fee-driven business model. 10% of our own in this market, but we can say and provide insightful is decreasing. This is because Smaller private equity firms can’t value is better in parts of Europe. strategic investors have come to afford to do it either – they need capital into any In PE, there is some distress analysis in a bespoke report the market. Due to the strong those fees to keep the business in some businesses because stock markets worldwide, they going. We’re sort of in between. transaction, they are over-levered or need that fully meets your data have a lower cost of capital and In this position there is always a which means we operational change and this requirements. they benefit from the synergies risk that you’ll be squeezed, but provides opportunities. On the generated by their transactions. there is also an opportunity to will act with a lot other hand, core infrastructure is This effect is huge in a low do something different. We think very expensive at the moment in interest rate environment. we are big enough to support of discipline” Europe. ourselves, but small enough AVCJ’s industry standard data is used by the world’s leading firms in their Q: LPs are looking to access the that we are not reliant on public most GPs. Why is it important Q: What do Asian LPs want from fundraising, investor relations communications and deal due diligence asset class through structures shareholders. to have skin in the game? Europe? that are not blind pool funds. A: Four of our five funds have A: I would say that there is an activities. AVCJ Customized Data Service includes: How can you respond? Q: Large LPs are also writing done very well and we have interest in companies that A: GPs are sitting on a lot of dry bigger checks. 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First, we recognize They tell us that in order to someone to invest and manage healthcare business in the UK ✔ Exits strategic analysis that it is very difficult for fund compete with larger funds we the asset.’ We agreed to become and there is a lot of interest from managers to deploy capital in need to do something different. involved and put in 10%. In Asian investors. In Japan, we see ✔ Market peers comparison the current environment and Therefore we have a different one of these cases, there was a a lot of interest in how to do so we want to have a smaller approach to fees and we are difference of opinion on price; business transformations. We amount of money to invest. Last focusing on different types of we didn’t think they should pay have always been very active in time we raised a EUR5 billion investments. We want to provide as much as they were willing terms of changing management ($5.5 billion) fund; we think it to them with alpha, whereas to pay. We had a view about teams or changing the ways in would be difficult to invest a bigger funds provide beta at where we wanted to put our which our portfolio companies fund of this size in the right reasonably low cost and they are 10% and so in the end we didn’t operate. In China, there is more opportunities at present. Second, quite efficient and effective. do the deal. This was a good focus on businesses that might To understand how AVCJ Research can help you we will not charge fees on result because we thought it bring strategic value to China. In with your data needs, please call: 852-3411 4961 or un-invested capital. This means Q: Terra Firma plans to commit was the wrong price to do the Hong Kong and Taiwan they are there will be no pressure from at least 10% to each deal or to deal. We are putting 10% of our more interested in European real email [email protected] investors, asking ‘When are you the fund, much higher than own capital into any transaction, estate. avcj.com Number 29 | Volume 28 | August 04 2015 | avcj.com 15 Private Equity & Venture Forum Korea 2015 15 September, South Korea - Westin Chosun, Seoul

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