Programme - Investment Summit (Day two), 14 November
Thursday, 14th November 2019
Tim Burroughs, Managing Editor, ASIAN VENTURE CAPITAL JOURNAL
Value creation: The next step
As Asia continue to mature as an investment destination, competition for deals is intensifying. If managers face the prospect of paying up for prize assets, they need to enter processes with conviction based on clear-cut value creation plans. Moreover, execution has to be precise in terms of timing, intensity or complexity, if the underwritten returns are to be achieved. In this session, experts offer insights into private equity investors apply operational expertise.
- When should value creation planning begin and how granular should it be?
- How are GPs addressing technology-related improvements?
- What are the most common mistakes in implementing value creation initiatives?
- What does it mean to be an active investor in Asia today?
Moderated by: Oliver Stratton, Managing Director, ALVAREZ & MARSAL
Alvin Lam, Principal, CVC CAPITAL PARTNERS
Chester Moynihan, Founding Partner, ALLEGRO FUNDS
Rodney Muse, Managing Partner, NAVIS CAPITAL PARTNERS
Kyle Shaw, Founder and Managing Partner, SHAWKWEI & PARTNERS
Plenary address: A view from Hamilton Lane: Key factors impacting the global private markets
Juan Delgado-Moreira, Vice Chairman, HAMILTON LANE
Networking coffee break
Track 1: Japanese private equity: Big ambitions
Japan has yet to rediscover the rich vein of large-cap deal flow that defined 2017, but the ingredients are all there. As a result, competition is tougher than ever before, with global and regional GPs piling in. Even the middle market occupied by domestic managers is attracting larger amounts of capital, as evidenced by increasing fund sizes. The challenge for all participants is to maintain investment discipline and strategy. Our industry stalwarts assess the landscape.
- What can investors do to capitalize on corporate carve-outs?
- Are succession planning deals still the middle-market mainstay?
- Which strategies have worked best in delivering value creation?
- How is the exit environment evolving in Japan?
Moderated by: Mingchen Xia, Managing Director, HAMILTON LANE
Mark Chiba, Group Chairman & Partner, THE LONGREACH GROUP
T.J. Kono, Partner, UNISON CAPITAL
Jun Tsusaka, Managing Partner, CIO and Founding Member, NSSK
Track 2: Energy: Creating capacity
Global energy demand is expected to grow by 25% through 2040, with India and China accounting for the bulk of the additional consumption. At the same time, concerns about climate change have put pressure on governments to promote energy efficiency and increasing reliance on renewables. The opportunity for private equity seems obvious, given the long investment horizons. Our panel of energy experts identify where they expect to see growth, and challenges, in the years ahead.
- Are there investment opportunities in oil and gas in Asia?
- How is technology driving efficiency gains?
- Which geographies are most attractive for renewables?
- How do the return expectations for energy differ from traditional PE?
Moderated by: Robin Ganguly, Editor APAC, INFRAMATION GROUP
Patrick Boocock, Managing Partner, Head of Asia, BROOKFIELD ASSET MANAGEMENT
Takahiro Kato, Head of Global Fund Investments, DBJ ASSET MANAGEMENT INSTITUTIONAL INVESTORS
Anthony Muh, Senior Partner, H.R.L. MORRISON & CO
Track 1: Credit: Global and local perspectives
Credit has generated much interest among LPs globally due to its typically yield-based returns and downside protection, although the asset class has yet to realize its full potential in Asia. Success is contingent on understanding the dynamics – for example, how a change in the borrower landscape would impact lenders – in different geographies as much as the broader trade-offs involving terms, structures, and risk profiles. Leading investors offer their outlooks on the market.
- Where are the best opportunities regionally and globally?
- How much progress is being made on creditor rights in Asia?
- What challenges do global players face when addressing the region?
- How does the opportunity set change based on the point in the cycle?
Moderated by: Sebastiaan van den Berg, Chief Investment Officer, Alternatives, ARCH INVESTMENT MANAGEMENT
Greg Belonogoff, Principal, CARVAL INVESTORS
Kanchan Jain, Managing Director, BARING PRIVATE EQUITY ASIA
Barnaby Lyons, Managing Director and Head of Asia, BAIN CAPITAL CREDIT ASIA
Christopher Smith, Managing Director, ADM CAPITAL
Track 2: India: Riding a wave
Private equity investment in India reached a record high last year and the momentum has been maintained in the early months of 2019 even as other markets in the region stumbled. There are plenty of opportunities in growth-stage technology, but GPs are seeing more large-ticket transactions across multiple sectors. For all managers, delivering value means identifying deals beyond the mainstream that offer growth at attractive valuations. Our panellists discuss what’s next for India.
- What did the national elections mean for private equity?
- How are Indian managers developing their value creation capabilities?
- What are the prospects for the latest generation of GP spin-outs?
- Has India’s exits overhang been consigned to history?
Moderated by: Pamela Fung, Executive Director, MORGAN STANLEY ALTERNATIVE INVESTMENT PARTNERS
Saurabh Chatterjee, Vice President, CHRYSCAPITAL ADVISORS
Sanjay Chaudhary, Partner, TATA CAPITAL GROWTH FUND
Ranjit Shah, Managing Partner and Co-Founder, GAJA CAPITAL
Track 1: Cross-border: Theory and practice
Cross-border strategies serve as a natural value creation tool, enabling GPs to help companies capture growth in new markets, achieve greater scale, and generate higher returns. Transactions of this nature are seldom straightforward in execution, given the cultural, political and regulatory challenges of integrating assets in different markets. On top of that, economic and policy uncertainty hangs over channels between Asia and US-Europe. Our expert panellists explain how investors get it right, and wrong.
- What are the most important skillsets for cross-border deals?
- Are Chinese buyers no longer welcome in the US and Europe?
- Which geographies within Asia are most conducive for cross-border expansion?
- Why do private equity investors often work alongside corporate partners?
Moderated by: Yue Zhang, Partner, FANGDA PARTNERS
Vincent Chan, Senior Managing Director and Head of Asia, SAMENA CAPITAL HONG KONG
James Ieong, Chairman and Managing Partner, PAGODA CAPITAL
Alex Emery, Head of Asia, PERMIRA
Emmett Thomas, Senior Partner, Head of Asia, ADVANTAGE PARTNERS
Track 2: Secondaries: Hitting their stride, finally
It was always a question of when secondaries would gain traction in Asia, given the number of mature funds with assets that have yet to be exited. GP-led transactions have grown in volume, value and variation in the last couple of years. Standard restructurings have been joined by staples, strip sales, preferred equity, the consolidation of disparate assets into single portfolios, and the spin-out of single assets into dedicated long-hold vehicles. Investors assess the market.
- What is the outlook for GP-led restructurings?
- Is there too much capital pursuing secondary deals in Asia?
- Where are the large-cap transactions going to come from?
- What are the main obstacles to getting secondary deals done?
Moderated by: Josh Stern, Director, Private Investments, ROBERT WOOD JOHNSON FOUNDATION
Tim Flower, Managing Director, HARBOURVEST PARTNERS (ASIA)
Michael Hu, Director, ARDIAN
Motoya Kitamura, Managing Director, HQ CAPITAL
Darren Massara, Managing Partner, NEWQUEST CAPITAL PARTNERS
Exits: A matter of timing
Asian returns have been robust in recent years, but with a downturn widely expected, GPs might be left with difficult choices. Do they take money off the table as soon as possible or hold on in the expectation that value creation can deliver even higher returns? Pressure to make distributions and future fundraising are factored into these decisions. Our panellists offer thoughts on prepping exits – and how outside forces can ruin the best laid plans.
- Which exit routes have proved most fruitful in 2019?
- What issues are most likely to derail exit processes?
- Asian buyers vs international buyers – who is winning the trade sale battle?
- Is Hong Kong a viable alternative to the US for tech IPOs? What about Shanghai?
Moderated by: Patrick Loofbourrow,Partner, COOLEY
John Kim, Senior Managing Director, CVC CAPITAL PARTNERS
Eric Xin, Senior Managing Director and Managing Partner, CITIC CAPITAL PARTNERS
Family offices: Looking into the future
Accessing family offices has always been a challenge for private equity – and not just because of widespread scepticism about blind pool funds. The biggest obstacle is the diversity in terms of needs, appetites and resources. As a result, the traditional single office approach has evolved to include multi-family offices, club structures, and platforms that aggregate capital from dozens of sources. Our panellists share their thoughts on how GPs can address this evolving market.
- What mistakes do GPs tend to make when trying to source high net worth capital?
- How should managers work with family offices on direct deals?
- How do family offices think about risk and return?
- What impact is emerging tech entrepreneur wealth having on the market?
Moderated by: Chris Lerner, Partner and Head of Asia, EATON PARTNERS
K O Chia, Director, GRACE FINANCIAL
Hugues de Saint Seine, Partner, CIGP
Ian Prideaux, Chief Investment Officer, THE GROSVENOR ESTATE
Meiping Yap, Director - Private Capital, STONEHAGE FLEMING INVESTMENT MANAGEMENT
Close of summit