Asia’s Private Equity News Source avcj.com September 24 2013 Volume 26 Number 36 EDITor’s Viewpoint Making sense of the Asia real assets story Page 3 NEWS Allegro, Altius, Ancora, Archer, ClearVue, CLSA, Gresham, Helion, IDFC, Kalaari, KKR, Sequoia, OTPP, Pencarrow, Warburg Pincus Page 4 FOCUS India property investors play the long game Page 13 ANALYSIS Solving Indonesia’s infrastructure gridlock Page 16 INDUSTRY Q&A Strong foundations StanChart’s Andrew Yee talks Asia infrastructure Page 6 LP interest in Asian infrastructure is robust, modes of entry are changing Page 19 INDIA CLEANTECH CHINA CLEANTECH Independent’s day Recalibration time Renewable energy IPPs eye market share Page 9 From exports to domestic consumption Page 11 Pre-cONFERENCE ISSUE AVCJ PRIvaTE EQUITY AND VENTURE CAPITAL FORUM - REAL ASSETS EXPRESSION OF INTEREst (“EOI”) FOREIGN PARTNER SELECTION FOR A NEW SUB-SAHARAN PRIVATE EQUITY FUND Today, Sub-Saharan Africa represents the last and perhaps one of the world’s most attractive emerging market private equity frontier regions. Our client is the investment banking arm of one of Sub-Saharan Africa’s largest, oldest and most prestigious diversified publicly traded financial service institutions. In 2012,it reported audited assets in excess of $20bn,earnings of approximately $500m+, and a return on average shareholders’ funds of 18.8%. Over the past decade (2003-2013), our client has operated a small-cap private equity and principal investing business but now intends to raise a separate, significant and sizeable new private equity fund (the “New Africa Fund”). The New Africa Fund will focus on larger investments in Sub-Saharan Africa thereby capitalizing on the many attractive and diverse private equity opportunities in this high growth region. Expressions of Interest [“EOI”] are now sought from highly successful and proven existing Private Equity firms operating internationally (prior emerging market PE experience is essential) to partner with our client in the New Africa Fund. Upon submission of an EOI as a co-fund manager, your firm, if pre-qualified, will receive a formal Request For Proposal (“RFP”) due for submission by December 2nd, 2013. Final partner selection is expected to occur by March, 2014. The International PE partner selected should expect to fully co-manage all aspects of the New Africa Fund with our client including: 1) providing a leadership role with our client in international fund raising and support on Africa wide fund raising efforts, 2) developing the New Africa Fund’s investment strategy and sector/country focus, 3) the LP engagement process (preparing 3rd party presentation materials, road show, etc) and 4) negotiations and achieving financial closing(s) for the New Africa Fund. Your expression of interest letter must include the following to avoid disqualification: 1. Full registered name of your current fund 2. Key person contact details (email, phone & physical address) 3. Total Fund Assets Under Management [AUM] 4. Name and address to where to send the formal RFP (contact name, fund name, e-mail and physical address only) 5. Your fund’s website address Only successfully selected responses to this EOI will be notified by e-mail to your designated contact by not later than October 31st, 2013. Summary Indicative Timetable: • Successful RFP submissions notified Dec. 10th, 2013 • Expression of Interest submission deadline: October • One-on-One pre-negotiations/Term Sheet review 28th, 2013 Dec. 12th – 15th, 2013 • Successful EOI responses notified, October 31st, 2013 • One-on-One negotiations commence January • RFP & Term sheet circulated Nov. 1st, 2013 20th, 2014 • Management presentation& one-on-one meetings, • Conclude negotiations & partner selection November 14th & 15th, 2013 March 31st, 2014 • RFP submission deadline, Dec. 2nd, 2013 Please send Expression of Interest letters by October 28th deadline, 2013 by email to: [email protected], Tel: +234-703-470-4697 EXPRESSION OF INTEREst (“EOI”) EDITor’s Viewpoint [email protected] FOREIGN PARTNER SELECTION FOR A NEW Managing Editor Tim Burroughs (852) 3411 4909 SUB-SAHARAN PRIVATE EQUITY FUND Staff Writers Andrew Woodman (852) 3411 4852 Mirzaan Jamwal (852) 3411 4821 Winnie Liu (852) 3411 4907 Today, Sub-Saharan Africa represents the last and perhaps one of the world’s most attractive emerging market The Asia real Creative Director private equity frontier regions. Dicky Tang Designers Catherine Chau, Edith Leung, Our client is the investment banking arm of one of Sub-Saharan Africa’s largest, oldest and most prestigious Mansfield Hor, Tony Chow Senior Research Manager diversified publicly traded financial service institutions. In 2012,it reported audited assets in excess of $20bn,earnings assets story Helen Lee Research Manager of approximately $500m+, and a return on average shareholders’ funds of 18.8%. Alfred Lam Research Associates Herbert Yum, Isas Chu, Over the past decade (2003-2013), our client has operated a small-cap private equity and principal investing business IT IS DIFFICULT TO TELL WHETHER ASIA Australia has seen its share of junior miners Jason Chong, Kaho Mak but now intends to raise a separate, significant and sizeable new private equity fund (the “New Africa Fund”). The is at the beginning of a real assets story or gain momentum via the public markets, and Circulation Manager negotiating a transition phase somewhere there may be an opening for PE now the Sally Yip New Africa Fund will focus on larger investments in Sub-Saharan Africa thereby capitalizing on the many attractive Circulation Administrator around the middle. “Real assets” is such an all- commodities super-cycle appears to be turning and diverse private equity opportunities in this high growth region. Prudence Lau encompassing term, taking in everything from and alternative sources of capital are hard to find. Manager, Delegate Sales forestry to energy to real estate, while individual Southeast Asia is now home to a couple Pauline Chen Expressions of Interest [“EOI”] are now sought from highly successful and proven existing Private Equity firms Asian markets face challenges that reflect their of publicly-traded independent oil and gas Senior Marketing Manager operating internationally (prior emerging market PE experience is essential) to partner with our client in the New different stages of development. explorers and, if private and corporate money Rebecca Yuen Asian private equity real estate funds have continues to be deployed in such operations Director, Business Development Africa Fund. Upon submission of an EOI as a co-fund manager, your firm, if pre-qualified, will receive a formal received cumulative commitments of more successfully, more of the geological and Darryl Mag Request For Proposal (“RFP”) due for submission by December 2nd, 2013. Final partner selection is expected to than $81.5 billion since 2003, according to AVCJ engineering talent working for oil majors in the Manager, Business Development occur by March, 2014. Research, a fraction of the $475 billion that has region will spin out. PE investors can back this Anil Nathani, Samuel Lau entered traditional PE over the same period. Yet talent, as they have in mature basins in the West. Sales Coordinator given the prominence of real estate in Asia – Arguments concerning oil, gas and minerals Debbie Koo The International PE partner selected should expect to fully co-manage all aspects of the New Africa Fund with our not least as a function of the urbanization that are underpinned by the reality that Asia is growth Conference Managers Jonathon Cohen, Sarah Doyle, Zachary Reff client including: 1) providing a leadership role with our client in international fund raising and support on Africa wide continues to shape emerging markets – surely long and resources short. The likes of China, India Conference Administrator fund raising efforts, 2) developing the New Africa Fund’s investment strategy and sector/country focus, 3) the LP we are still only in the nascent stages of private and Indonesia will account for the bulk of new Amelie Poon equity’s involvement with the asset class. energy demand over the next 20 years and they Conference Coordinator Fiona Keung, Jovial Chung engagement process (preparing 3rd party presentation materials, road show, etc) and 4) negotiations and achieving This time last year, The Blackstone Group had are inclined to look for supplies on their doorstep. financial closing(s) for the New Africa Fund. accumulated real estate assets in Asia of around The same fundamental need applies to Publishing Director Allen Lee $2.5 billion and committed the same amount to infrastructure. It goes without saying that Managing Director PE investments. These figures predated the close emerging markets in the region require roads, Your expression of interest letter must include the following to avoid disqualification: Jonathon Whiteley of the firm’s most recent global real estate fund railways, airports, utilities, power generation and 1. Full registered name of your current fund and the launch of its debut Asia vehicle, so the distribution systems, and telecom networks. The 2. Key person contact details (email, phone & physical address) assets balance could shift still further. question is how and where can private equity 3. Total Fund Assets Under Management [AUM] Of the major global PE firms that are trying provide this and get a satisfactory rate of return. to establish themselves as multi-strategy asset In terms of Southeast Asia, PE is still near Incisive Media 4. Name and address to where to send the formal RFP (contact name, fund name, e-mail and physical address only) Unit 1401 Devon House, Taikoo Place managers, Blackstone has arguably made the the beginning of the story. There are needs 979 King’s Road, Quarry Bay, Hong Kong 5. Your fund’s website address most progress on real estate. Come back in 10 that must be met and it remains to be seen T. (852) 3411-4900 years time inspect their Asia allocations; direct how foreign investors fare when their interests F.