2017-投资界电子周刊No0579-英文版_10页_219kb

PEdaily E-Magazine Issue No. 579 Summary

Core Content

PEdaily E-Magazine, formerly known as Zero2ipo e-Weekly, is a weekly publication targeting professionals in the private equity (PE) and venture capital (VC) industries. It provides timely, accurate, and in-depth market reports, covering investment and financing news, industry insights, data observations, and expert opinions. The magazine is supported by the extensive investor network of Pedaily.cn, which has accumulated over 10 years of research resources from the Zero2IPO Group. It aims to build a professional platform with abundant data and thorough analysis, welcoming contributions from investors, entrepreneurs, analysts, and lawyers to share their views and track the development of China’s PE/VC industry.

Main Points and Key Information

1. China's M&A Activity

• In April 2013, China's M&A market recorded 65 deals with a total value of US$2.53 billion.
• Of these, 63 deals were disclosed, with an average deal value of US$40.13 million.
• The total value of M&A deals declined by 15.1% compared to March 2013 and by 50.8% year-over-year.
• The significant drop in the "HoH" (Highest Outstanding Holdings) was attributed to seven large outbound M&A deals in April 2012 totaling US$3.16 billion, which exceeded the total value of deals in April 2013.

2. Life Community 19lou Secures RMB60M Financing

• 19lou, a living and consumption community website, raised RMB60 million through a capital increase and transfer agreement.
• The funding came from Hangzhou Lianchuang Yongyi Venture Investment Partnership and Hangzhou Yongxuan Yongming Equity Investment Partnership.
• 19lou, along with Tianya and Mop, is considered one of "China's Three Major BBS" due to its extensive local presence in over 30 cities.

3. Perfect World Invests in Multiple Game Developers

• Perfect World, under the leadership of Senior Vice President Alex Xu, invested in dozens of mobile game developers, including PGSOUL.
• PGSOUL Game Studio was the first mobile game company invested in by Perfect World.
• Xu emphasized that Perfect World does not aim to fully control these companies but to maintain their independence, typically holding around 20% equity.

4. Kaifu Lee's TMI Innovation Works Invests in Three Startups

• TMI Holding Company (Taiwan Innovation Works), co-founded by Kaifu Lee, invested in three Taiwan-based software companies.
• The first investment was in Citiesocial.com, an online mall specializing in selling delicately crafted food, small design products, and accessories from high-end brands such as Braun and Lavie.
• Ostrich pillow is noted as the best-selling product on the platform.

5. Yahoo's Aggressive M&A Strategy

• Yahoo's CEO, Marissa Mayer, acquired 10 companies in 10 months, with Loki Studio being the fourth acquisition of the month and the tenth since July 2012.
• Mayer's strategy focuses on acquiring venture companies that align with Yahoo’s business development goals.
• She previously aimed to complete 20 similar acquisitions during her tenure at Google.

6. Warburg Pincus Raises US$11.2 Billion for Private Equity Fund

• Warburg Pincus LLC successfully raised US$11.2 billion for Warburg Pincus Private Equity XI, L.P., making it the largest PE fund raised since the global financial crisis.
• The fund's limited partners include international pension funds, sovereign wealth funds, insurers, endowment funds, foundations, and high-net-worth individuals.
• The first fundraising round was completed in May 2012, with the final round expected to be completed within one year.

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Conclusion

This issue of PEdaily E-Magazine highlights key developments in China’s M&A and investment landscape, including a decline in M&A activity, notable funding rounds for tech and lifestyle platforms, and strategic investments by major players like Perfect World and Yahoo. It also reports on the fundraising success of Warburg Pincus, which underscores the continued confidence in the private equity market. The magazine serves as a vital resource for industry insiders, offering comprehensive insights into the evolving PE/VC ecosystem in China.