Asia’s Private Equity News Source avcj.com October 29 2013 Volume 26 Number 41 EDITor’s VieWPOINT Malaysia’s private equity star is rising - and it’s a largely, but now wholly, government-driven story Page 3 NEWS Actis, Ant Capital, CDH, Future Fund, Hony, IDG, INCJ, Jungle Ventures, KKR, LotusPool, Macquarie, OPIC, Pacific Equity Partners, Peepul, Polaris, Quadrant, Sequoia, Tata Capital, Vision Knight Page 4 INDUSTRY Q&A Intel Capital President Arvind Sodhani on how Diversification play corporate VC evolves alongside technology Returns-hungry LPs develop an appetite for Asia real assets investment Page 6 Page 11 DEAL OF THE WEEK DEAL OF THE WEEK Affinity for farming Sweet exit for J-Star Buyout firm in $123m China dairy deal Page 10 Japanese GP secures Tokachi trade sale Page 10 AVCJ Indian Private Equity & Venture Capital Awards 2013 Nominations close on October 31 The AVCJ Indian Private Equity & Venture Capital Awards 2013 recognises and honours firms and professionals who have raised the bar for the industry during the past year. Tell us who you think deserves recognition. Submissions for nomination close on October 31. Simply visit www.avcjindia.com/nominations and fill out the form. For enquiries, please contact [email protected] RECOGNISING EXCELLENCE India Award categories IN INDIAN PRIVATE EQUITY Firm of the Year Private Equity Professional of the Year Exit of the Year Private Equity Deal of the Year Venture Capital Deal of the Year India Fundraising of the Year Sponsored by ASSOCIATE YOUR BRAND WITH EXCELLENCE: If you would like to be associated with recognising and Nominate rewarding excellence in the Indian private equity industry, your award sponsorship opportunities are available. top choices Please contact Samuel Lau on +852 3411 4963 or Now! [email protected] AVCJ Indian Private Equity & Venture EDITor’s VieWPOINT Capital Awards 2013 [email protected] Managing Editor Tim Burroughs (852) 3411 4909 Staff Writers Nominations close on October 31 Andrew Woodman (852) 3411 4852 Mirzaan Jamwal (852) 3411 4821 Malaysia rising Winnie Liu (852) 3411 4907 Creative Director Dicky Tang Designers The AVCJ Indian Private Equity & Catherine Chau, Edith Leung, IT’S BEEN A FEW YEARS SINCE SOUTHEAST Malaysia is also fast becoming a destination Mansfield Hor, Tony Chow Asia, spurred by rising interest in Indonesia, for private equity fundraisers thanks to Senior Research Manager Venture Capital Awards 2013 emerged as the hottest region for LPs seeking government-linked entities. Helen Lee private equity exposure. While the frenzy has The Employment Provident Fund, probably Research Manager Alfred Lam recognises and honours firms and eased recently, the region remains an attractive Malaysia’s biggest LP, announced earlier this year Research Associates location, especially for smaller funds. And a that it will increase its allocation to private equity Herbert Yum, Isas Chu, professionals who have raised the bar sizeable portion of these small to mid-size players (which it has been doing for a couple of years). Jason Chong, Kaho Mak have adopted a more balanced pan-ASEAN There is still plenty of room for improvement as Circulation Manager approach instead of focusing on a single country. allocations are less than 1% of the EPF’s $162 Sally Yip for the industry during the past year. Circulation Administrator It is no surprise that Singapore is the leading billion assets under management. Prudence Lau recipient of private equity capital, while Indonesia In addition KWAP, the country’s $28 billion Manager, Delegate Sales remains popular but has yet to generate retirement savings fund, may seek more private Pauline Chen investment flow commensurate with the level equity investments. Director, Business Development Tell us who you think deserves recognition. of attention. The Philippines and Vietnam, never Of course, Malaysian private equity isn’t Darryl Mag subject to great expectations in terms of deal only government-driven. Navis has been Manager, Business Development Submissions for nomination close on October 31. Simply visit volume, have been reasonably sparse. headquartered in Kuala Lumpur since it was set Anil Nathani, Samuel Lau Malaysia, remains underpenetrated by private up in 1998. CIMB’s PE team is also a force in the Sales Coordinator www.avcjindia.com/nominations and fill out the form. equity – although there is reason to believe this market along with a number of other principal Debbie Koo may soon change. Having visited Kuala Lumpur investment arms of local banks. Creador Capital, Conference Managers very recently, it feels to me that the Malaysian which invests the bulk of its capital in Southeast Jonathon Cohen, Sarah Doyle, Zachary Reff For enquiries, please contact [email protected] government, through various linked entities, will Asia, also calls Kuala Lumpur home. Conference Administrator play a critical role in this paradigm shift. With recent reports suggesting company Amelie Poon Conference Coordinator Ekuinas since its inception has been the driver owners are increasingly open to the prospect of Fiona Keung, Jovial Chung of private equity deals within Malaysia either selling stakes to PE investors, the perfect storm Publishing Director directly or via its outsourcing programs. Endowed may be nearing. Malaysia has the potential to Allen Lee with government money, the group has amassed become a significant private equity destination Managing Director RECOGNISING EXCELLENCE a portfolio of 12 direct deals with another seven – in a Southeast Asian context – for GPs and LPs Jonathon Whiteley India Award categories IN INDIAN PRIVATE EQUITY from its outsourced GPs, including the likes of alike. Navis Capital Partners and CIMB. Firm of the Year In terms of venture capital, MAVCAP, another government-linked manager and the country’s Private Equity Professional of the Year largest VC firm, has been active in funding local Incisive Media entrepreneurs. The 12-year-old firm is said to Allen Lee Unit 1401 Devon House, Taikoo Place Exit of the Year have made more than 140 investments. Like Publishing Director 979 King’s Road, Quarry Bay, Ekuinas, MAVCAP also outsources to local GPs. Asian Venture Capital Journal Hong Kong Private Equity Deal of the Year T. (852) 3411-4900 F. (852) 3411-4999 E. [email protected] Venture Capital Deal of the Year Southeast Asia PE investment by country URL. avcj.com India Fundraising of the Year Beijing Representative Office 10,000 No.1-2-(2)-B-A554, 1st Building, No.66 Nanshatan, Chaoyang District, Beijing, 8,000 People’s Republic of China T. (86) 10 5869 6203 Sponsored by F. (86) 10 5869 6205 6,000 E. [email protected] 4,000 US$ million The Publisher reserves all rights herein. Reproduction in whole or 2,000 in part is permitted only with the written consent of AVCJ Group Limited. ISSN 1817-1648 Copyright © 2013 0 ASSOCIATE YOUR BRAND WITH EXCELLENCE: 2008 2009 2010 2011 2012 2013YTD If you would like to be associated with recognising and Nominate Indonesia Philippines Thailand Malaysia Singapore Vietnam rewarding excellence in the Indian private equity industry, your Source: AVCJ Research award sponsorship opportunities are available. top choices Please contact Samuel Lau on +852 3411 4963 or Now! [email protected] Number 41 | Volume 26 | October 29 2013 | avcj.com 3 NEWS Hony, Suning take control to list on the Australian bourse with a view to ASIA PACIFIC raising A$15 million ($14.43 million) through an of China’s PPTV IPO. Startive Ventures owns 42% of Freelancer. Intel Capital unveils seven Hony Capital and home appliance retailer Suning Commerce - also one of the PE firm’s portfolio new Asia investments companies - will buy a controlling interest in GREATER CHINA Intel Capital has invested in seven Asia-based Chinese online TV provider PPTV for $420 million. companies as part of a batch of 16 global The deal, which values PPTV at approximately China’s Sungy Mobile commitments totaling $65 million. The Asian $568 million, creates an exit opportunity for the firms are: Singapore’s CloudFX, Japan’s Cloudian targets $80m US IPO and Fileforce, CSDN from China, Taiwan’s Lintes Sungy Mobile, a Chinese app developer backed Technologies, and India’s Perpetuuiti TechnoSoft by IDG Capital Partners, Jafco, WI Harper and Services and Savaari Car Rentals. China Broadband Capital (CBC), is targeting a $80 million IPO and a listing on the New York Stock PennSERS commits $50m to Exchange. The company, which focuses on apps, widgets and functions for Android smart phones, Asia Alternatives claims to be one of the top three publishers Pennsylvania State Employees’ Retirement globally on Google Play. System (PennSERS) has committed a further $50 million to Penn Asia Investors, a separate account Ex-CDH executive arrested managed by Asia Alternatives that focuses on opportunistic investments in funds across the company’s existing VC backers. in China region. Last year the pension system put $33 According to a regulatory filing, Suning will Gongquan Wang, founder of CDH Venture million into the vehicle. pay $250 million to buy a 44% stake in PPTV, Capital, has been formally arrested by Chinese becoming the largest shareholder. Two Hony- authorities following his detention last month on OPIC seeks emerging operated vehicles - Exalt Spring and Virtue charges of assembling a crowd to disturb public Faith Holdings - will put in the remaining $170 order. Wang left CDH two years ago. markets GPs million. The private equity firm’s ownership The US government-backed Overseas Private stake was not disclosed. Several venture capital VC-backed Chinese lottery Investment Corporation (OPIC) has made a call firms are expected to sell their shares during for proposals from GPs operating in emerging the transaction. Softbank China Venture Capital, site files for $150m US IPO markets, including Asia. OPIC is looking to Bluerun Venture, Draper Fisher Jurvetson VC-backed Chinese sports lottery provider 500.