Asia’s Private Equity News Source avcj.com October 20 2015 Volume 28 Number 39 EDITOR’S VIEWPOINT Alibaba’s move for Youku Tudou reflects internet giants’ battle for content Page 3 NEWS AngelList, ASK Capital, Brookfield, Carlyle, Crescent, Everstone, IFC, IndEU, Matrix China, Monk’s Hill, Northern Light, Providence Equity, SAIF, Sequoia, SoftBank, Temasek, Yunfeng Page 4 INDUSTRY Q&A Choon Chong Tay of Better in the shade Vertex Ventures China on going independent Shadow lenders are not necessarily a threat - to the economy or to PE Page 6 Page 11 DEAL OF THE WEEK DEAL OF THE WEEK Convenience counts A modern mailman China O2O services player receives $300m Page 10 SingPost taps PE for e-commerce assets Page 10 16th Annual Private Equity & Venture Forum India 2015 1-2 December • Taj Lands End, Mumbai GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY avcjindia.com20 March 2012 Speakers confirmed to Why 65 speak include: SAVE LPs US$300 book before 60 Steve Byrom join Head of Private 23 OCT 2015 Speakers Equity FUTURE FUND us? 280 Delegates Keynote 180 Companies Edouard Merette Soichi Sam Takata Managing Director, Head of Private Equity Asia-Pacific TOKIO MARINE ASSET 14 CDPQ SINGAPORE MANGEMENT CO. LTD Countries Mark Mobius For the latest programme Ameera Shah Executive Chairman and speaker line-up, visit Managing TEMPLETON avcjindia.com Director and CEO EMERGING MARKETS METROPOLIS GROUP HEALTHCARE and many more! Registration enquiries: Carolyn Law Sponsorship enquiries: Anil Nathani T: +852 3411 4837 T: +852 3411 4938 Enquiry E: [email protected] E: [email protected] Asia Series Sponsor Co-Sponsors Knowledge Partners Cocktail Reception Host avcjindia.com Join your peers #avcjindia 16th Annual Private Equity & Venture Forum EDITOR’S VIEWPOINT India 2015 [email protected] 1-2 December • Taj Lands End, Mumbai Managing Editor Tim Burroughs (852) 3411 4909 Associate Editor King content Winnie Liu (852) 3411 4907 Staff Writer Holden Mann (852) 3411 4964 YOUKU TUDOU RECENTLY ANNOUNCED mobile and computer screens, whereas in the Creative Director a deal with Paramount Pictures that will see lounge the big screen TV will feature premium- Dicky Tang movie franchises such as Shrek, Star Trek and produced content. Designers Mission: Impossible made available to the This vision will not just pay for itself through Catherine Chau, Edith Leung, Chinese online video platform’s subscription lower-cost-per-user content and access to a Mansfield Hor, Tony Chow services. Alibaba Group had already gone one wider user base. Business customers that rely on Senior Research Manager step further. Its Ali Pictures affiliate was a direct the Alibaba ecosystem to promote their brands Helen Lee GLOBAL PERSPECTIVE, LOCAL OPPORTUNITY avcjindia.com20 March 2012 investor in the most recent Mission: Impossible can benefit from better-targeted marketing Research Associates release and as part of the deal received certain solutions thanks to a deeper understanding Herbert Yum, Jason Chong, Kaho Mak Speakers confirmed to rights to publish the movie digitally and of users achieved through the integration of speak include: SAVE theatrically in China. entertainment and e-commerce data. Senior Marketing Manager Why 65 If Alibaba gets its way and takes full The companies have already tried mapping Sally Yip LPs Circulation Administrator US$300 ownership of Youku Tudou, it can sign content user activity on Taobao against that on Youku Prudence Lau book before deals with the likes of Paramount across multiple Tudou and tested a shop-while-you-watch Subscription Sales Executive Steve Byrom join 60 distribution channels, reducing cost-per-user and platform through which viewers can buy Jade Chan Head of Private 23 OCT 2015 giving it a wide reach. The proposed acquisition products they see in shows. There is also interest Speakers Equity Manager, Delegate Sales FUTURE FUND would allow Chengwei Ventures and GGV Capital in giving advertisers access to Youku Tudou’s Pauline Chen to fully exit their positions in Youku Tudou, but it professionally-generated content channels us? 280 Director, Business Development is of significance to a broader swath of investors where video bloggers build up followings for Darryl Mag Delegates – indeed to almost anyone active in technology, their output on topics such as food or sport. media and telecom. The unifying element is youth: Alibaba Manager, Business Development Anil Nathani, Samuel Lau Keynote It pays in China to keep an eye on the wants to engage with a young consumer base machinations of the large internet companies, that is increasingly reliant on mobile devices Sales Coordinator 180 Debbie Koo Companies as one ambitious act of organic or inorganic yet increasingly resistant to traditional forms Edouard Merette Soichi Sam Takata expansion can redefine the opportunities in and of advertising and content consumption. It Conference Managers Jonathon Cohen, Sarah Doyle, Managing Director, Head of Private Equity around a market segment. Alibaba’s move for remains to be seen which of the internet giants Conference Administrator Asia-Pacific TOKIO MARINE ASSET Youku Tudou may even prompt countermoves can do this most effectively and whether there 14 CDPQ SINGAPORE MANGEMENT CO. LTD Amelie Poon Countries by Tencent Holdings and Wanda Group, which is space for multiple players covering the entire Conference Coordinator also look to content as a means of monetizing media value chain from content generation to Fiona Keung, Jovial Chung users and bringing in advertisers. distribution to payment. Publishing Director Mark Mobius For the latest programme Ameera Shah Alibaba has stressed that it wants to leverage Alibaba, Tencent and Wanda have their own Allen Lee Executive Chairman and speaker line-up, visit Managing rising demand for entertainment content and strategies but they won’t have it all their own TEMPLETON avcjindia.com Director and CEO services, with online digital revenue in China way – rivals are trying to carve out their own EMERGING MARKETS METROPOLIS expected to grow from $4 billion in 2014 to $14 dominions within or alongside the ecosystems HEALTHCARE GROUP and many more! billion by 2018. The company has launched Tmall being developed. While LeTV has gone from Hong Kong Headquarter Unit 1401 Devon House, Taikoo Place Box Office, a subscription service along the lines streaming to licensing and production to smart 979 King’s Road, Quarry Bay, Registration enquiries: Carolyn Law Sponsorship enquiries: Anil Nathani of Netflix, and created Ali Pictures, which has devices, others have a narrower focus, creating Hong Kong T. (852) 3411-4900 T: +852 3411 4837 T: +852 3411 4938 production and distribution agreements with a production ventures that could ultimately supply F. (852) 3411-4999 E. [email protected] Enquiry E: [email protected] E: [email protected] string of local TV stations. content to the big platforms. URL. avcj.com Youku Tudou seems to be a good fit. The Suning Commerce is perhaps the most Beijing Representative Office Asia Series Sponsor Co-Sponsors company has 500 million unique monthly users, interesting of all. The mainly offline electronics No.1-2-(2)-B-A554, 1st Building, an increasing proportion of whom access its retailer teamed up with Hony Capital to buy No.66 Nanshatan, Chaoyang District, Beijing, services via mobile devices, but the business control of PPTV, driven by a desire to combine People’s Republic of China has yet to turn a profit. While revenue rose content and e-commerce. It has since received T. (86) 10 5869 6203 F. (86) 10 5869 6205 121% between 2012 and 2014, content costs a strategic investment from Alibaba. Broader E. [email protected] increased 153% and bandwidth costs jumped consolidation is likely – although predominantly by 75%. Subscription revenue is rising, but is this among the smaller players – as the industry happening fast enough? figures out how to make more money. The Publisher reserves all rights herein. Asked by an analyst to share his expectations Reproduction in whole or for Alibaba’s entertainment business three years in part is permitted only with the written consent of AVCJ Group Limited. Knowledge Partners Cocktail Reception Host from now – assuming the Youku Tudou deal goes ISSN 1817-1648 Copyright © 2015 through – Joe Tsai, vice chairman of Alibaba, Tim Burroughs described a multi-screen strategy: Users will see Managing Editor shorter, more user-generated content on their Asian Venture Capital Journal avcjindia.com Join your peers #avcjindia Number 39 | Volume 28 | October 20 2015 | avcj.com 3 NEWS GLOBAL PE exposure drives Asia AngelList raises $400m family office performance from CSC Group Temasek backs Dell in $67b Family offices in Asia Pacific produced the Start-up funding platform AngelList has raised a second-best performance globally in 2014, in $400 million early-stage focused fund from CSC acquisition of EMC part due to their relatively large private equity Venture Capital, the US arm of private equity Singapore’s Temasek Holdings is supporting the exposure, according to a new report. The Global firm China Science & Merchants Investment $67 billion buyout of data storage and cloud Family Office Report 2015, released by Campden Management Group, also known as CSC Group. computing company EMC Corporation by Wealth Research in partnership with UBS, found The fund, called CSC Upshot, is said to represent US-based computer maker Dell. Other backers that Asia Pacific family offices generated an the largest investment by a Chinese PE firm in include Silver Lake and MSD Partners. EMC’s average return of 6.3% last year in dollar terms, a US fund, as well as the largest single pool of investors will get about $33.15 per share in cash, down from 7.6% in 2013. Europe performed best, capital devoted to early-stage start-ups. plus a tracking stock tied to EMC’s interest in cloud returning 6.4%, while the global average came to infrastructure and business mobility firm VMware.