Thursday, 12th July 2018
Registration and refreshments
Global Macro Perspectives and the Rise of Private Capital in Asia
World output has recovered strongly in the past two years, with Asia contributing meaningfully to the global economic upswing. However, future growth prospects look more challenging as policy support is gradually fading in some major economies. With global asset price volatility set to continue to normalize, macro risk mispricing becomes more likely. Private equity investors taking a long-term view are well positioned to exploit periods of heightened volatility, enhancing the secular trend towards private markets.
• As the role of private capital continues to rise, what role will Asia play in investors’ portfolios?
• How do global investors access the Asian private equity market and what are the risk-adjusted return implications of different investment strategies?
• To what extent does diversification at the (sub-) regional level matter?
Asian Private Equity: Building a winning portfolio
Asian private equity has entered a new phase, with fundraising,deal value, and exits all reaching peak highs, showing the reality of a maturing market. For investors, this has helped solidify Asia’s position within the global private equity ecosystem. However, the market still holds its challenges, with valuations across the region at all-time highs, and stiffer competition for deals. To prevail, GPs must develop new capabilities to distinguish themselves and deliver superior returns. Our leading Asian fund managers share their insights into the best way to effectively approach the region.
• As Asian private equity enters a new era, where are the hotspots for investors?
• How do you source attractive deals in an increasingly competitive and expensive market?
• What has been the impact of the trade tariffs imposed by China and the US for private equity?
• How is the exit market evolving in Asia, and how will GPs make sure they continue to deliver strong results?
Japan: On global investors radar
Japanese private equity is flourishing. From domestic middle-market GPs to international buyout players, investors are seeing increased deal flow as a result of demographic-driven succession-planning situations, divestment activity by conglomerates, and local companies seeking partners as they try to go global. Coupled with impressive exit numbers, foreign LPs’ interest in the market has spiked. Our expert panel will share their views on the opportunity set.
• How have GPs won the trust of owners and management teams?
• As competition intensifies, what sectors show the most promise?
• What are GPs doing to differentiate themselves?
• What type of multiples are expected?
Networking coffee break
India: Moving forward
Indian private equity has been propelled back onto investors’ radars as it continues to deliver on its promise. Deal making in 2017 reached an all-time high, and strong exit momentum has continued, confirming a maturity of the asset class. The question is, how is the industry going to move forward? GPs are moving from minority stakes, and top-line growth investing, to creating value in control orientated situations. How will established players evolve in the coming years? Furthermore, as throughout the region, valuations remain high and competition for deals are intense. Our India experts explain what is next for Indian private equity.
Chinese Private Equity: Approaches, strategies and tips for success
Chinese private equity continues to mature, from its original focus on growth capital, into more diverse approaches, including privatisations, succession planning situations, and corporate carve-outs as a general acceptance of private equity funding growth. However, new opportunities present new
challenges and GPs must adjust their strategies to succeed. Our panel analyses developments and discusses how to access emerging opportunities.
• How is the buyout landscape developing, and what parts of the market are providing the best opportunities?
• Despite high valuations, which sectors remain attractive?
• What new strategies do firms need to employ to deliver true value creation?
• How is the exit environment evolving, and how are GPs providing liquidity?
Southeast Asia: What is the best approach?
Southeast Asia presents a myriad of challenges, especially for investors from outside the region. With an under developed private equity ecosystem and fragmented development of its economies, it can be a difficult proposition for LPs. However, exit values jumped 86% in 2017, highlighting the true potential for this part of the region, and the internet, consumer, and tech sectors, continue to thrive by providing strong deal flow. Our Southeast Asia stalwarts share their tips for navigating this interesting part of the Asia story.
China Venture Capital: Capturing the opportunity
Chinese Venture Capital is at a crossroads as it defines its position in the global VC landscape. With the emergence of a number of spinouts from global and domestic brand names, a proliferation of state-backed funds, the dominance of innovation across AI, robotics, and big data, and strong exit
routes means Chinese venture capital has been propelled to centre stage. However, questions remain around attractive deal sourcing, sustained high valuations, and intense competition. Our industry specialists share their thoughts on where the Chinese venture capital industry might go next.
• How do you choose which VC funds to invest with in China, and what is key when looking at first-time funds?
• Which parts of the hot sectors are still providing interesting opportunities?
• Has China taken over broad leadership of technology development? Where are the most interesting innovations?
• What will the Chinese venture capital landscape look like in five years?
Networking coffee break
Opening remarks KOTRA
Korea: Solid and Dependent performer
South Korea’s private equity market is flourishing, enjoying a record year for exits in 2017. Deal flow is strong led by divestments from local conglomerates, and plenty of middle-market deals via succession opportunities and firms looking to scale and modernize. However, General Partners need to make sure they can differentiate themselves amongst intensified competition and steep valuations. Our panellists assess the investment landscape.
- Which sectors are most interesting when looking at proprietary deals in the small and mid-cap environment?
- Are cross-border strategies playing out as expected?
- How are successful GPs exiting their investments?
- What does the state of relations between the North and South mean for investors?
Credit: Navigating the opportunity set
Market volatility over the past couple of years has driven distress and restructuring opportunities across Asia, and global and regional players have responded by expanding their offerings. China and India have emerged as focal points, given the size of their non-performing loan problems. The
question for offshore investors is how they should approach these markets, by putting resources on the ground or through partnerships with local players. Our panel offers insights into this evolving part of the market.
• Which themes offer the most promise for distress investors?
• What kind of resources are required for post-deal management?
• Are macro conditions outside of Asia creating an opportunity or a threat?
• What is the reality of the NPL opportunity in China and India?
LP panel: Asia, a consistent in a global portfolio
As Asian exit values continue to reach all-time highs and managers deliver consistent returns to investors, Asia has strengthened its position as an essential part of a diversified portfolio. However, for investors the challenge remains, choosing the right strategy, amongst a variety of fund types,
sector specialists, fund sizes, and varying terms. Our panel discusses their approaches when looking at Asia.
• How can technology help you learn the landscape in Asia and help you pick the right partners?
• Which sectors and regions remain attractive to investors, and what are their biggest concerns?
• How do LPs cope with currency risk when looking at Asia?
• What has delivered the best returns from Asia, and how has the secondaries market developed?