Preqin-私募风投报告（英文）-2018.5-23页-2mb

Summary of Private Equity & Venture Capital Spotlight

Core Content Overview

This document provides an in-depth analysis of venture capital (VC) activity in emerging markets and highlights the role of sovereign wealth funds (SWFs) in private equity investments. It also includes industry news on recent institutional commitments, notable deals, and the largest private equity funds closed in 2018.

Venture Capital in Emerging Markets

Fundraising Trends

• In 2017, three of the four largest VC funds in emerging markets were early-stage funds, while the largest in Sub-Saharan Africa was a growth fund.
• Over the past decade, emerging market-based VC managers have closed nearly 600 funds and raised $47bn, representing 16% and 43% of the capital raised by North American and European managers, respectively.
• South Asia led in capital raised, with $15bn, primarily driven by Singapore which accounts for 54% of funds closed and 58% of the aggregate capital raised in the region.
• Latin America and MENA raised $12bn and $13bn, respectively, since 2008.
• Israel and Brazil are the top performers in their respective regions, accounting for 45% and 47% of funds closed and 49% and 59% of capital raised.

Fund Types & Deals

• Early-stage strategies dominated fundraising in Latin America, South Asia, and MENA over the past 15 months.
• Sub-Saharan Africa saw 50% of capital raised by growth funds.
• From the start of 2017 to 2018 YTD, 1,168 deals were valued at $13bn in emerging markets.
• South Asia accounted for 43% of deals and 61% of total deal value.
• MENA led in exits, with 36 exits totaling $1.9bn, mainly from Israel.

Investors in Emerging Markets

• North America-based IFC is a top investor in all emerging regions, with 91 commitments to funds in these areas.
• Government agencies are the majority (70%) of the most active investors in emerging markets.
• Top investors include:
  • Latin America: FINEP, Brazilian National Development Bank, CAF, IFC
  • South Asia: IFC, Cathay Life Insurance, Asian Development Bank, CDC Group
  • MENA: European Investment Bank, IFC, Harel Insurance Investments, CDC Group
  • Sub-Saharan Africa: CDC Group, IFC, European Investment Bank, FMO, African Development Bank

Largest Funds in Market

• Latin America: Vinci Capital Partners III (target size: $800mn)
• South Asia: Sino-Singapore (Chongqing) Connectivity Private Equity Fund (target size: $100,000mn)
• MENA: Eucalyptus Growth Capital I (target size: $300mn)
• Sub-Saharan Africa: LeapFrog Emerging Consumer Fund III (target size: $800mn)

Sovereign Wealth Funds in Private Equity

Investment Trends

• 60% of SWFs are known to invest in private equity, up 13 percentage points from 2015.
• SWFs are increasing their target allocation to private equity from 7.8% in 2013 to 16.6% in 2018.
• Temasek Holdings has been investing in private equity since 1981 and has a $458mn co-investment with Singapore-based businesses in a new International Partnership Fund.

Strategy Preferences

• 72% of SWFs investing in private equity target venture capital funds, surpassing buyout funds.
• Direct investments are common, with 85% of SWFs making such investments, allowing for greater control and reduced manager fees.
• Co-investments are also widely used, with benefits such as better returns, lower fees, and exposure to attractive assets.

Regional Preferences

• Europe remains the most appealing region for SWFs, with many fund managers based there.
• Asia is increasingly attractive, with more SWFs targeting investments in the region than in North America.
• Examples: New Mexico State Investment Council made $100mn commitments to Affinity Asia Pacific Fund V and TPG Asia VII.

Alternative Routes to Market

• Separate accounts are gaining popularity, with 35% of SWFs using them, up from 30% in 2017.
• These structures offer greater transparency, more control, and customized investment products.

Secondary Transactions

• SWFs are using the secondary market to restructure portfolios and access undervalued fund interests.
• Notable transactions in 2017 included:
  • Kuwait Investment Authority sold a portfolio of buyout fund stakes to Coller Capital.
  • Temasek Holdings acquired stakes in two funds from British Columbia Investment Management Corporation.

SWFs as GPs

• Some SWFs, like Mubadala Capital, act as General Partners (GPs) by providing services to other investors.
• PIF launched a $1bn fund of funds to support domestic SMEs.

Industry News

Recent Institutional Commitments

• State of Wisconsin Investment Board made eight new commitments, including:
  • $75mn to Patria Brazilian Private Equity Fund VI
  • $75mn to Providence Strategic Growth III
  • $70mn to Clearlake Capital Partners V
  • $65mn to Charlesbank Equity Partners IX
  • €50mn to EQT VIII
  • $50mn to Charlesbank Credit Opportunities Fund
  • $50mn to TPG Growth IV
  • £30mn to Alchemy Special Opportunities Fund IV
• Alameda County Employees' Retirement Association committed $10mn to Khosla Ventures VI and $10mn to Khosla Ventures Seed D.
• Texas Municipal Retirement System committed $55mn to Providence Equity Partners VIII and additional $10mn to Providence Strategic Growth III, among others.

Notable Deals Completed in 2018

• Alibaba Group, Ant Financial, Haofeng Group, Junli Capital, and Tianhe Capital invested $866bn in Ofo Bicycle (Series E funding).
• Phoenix Equity Partners acquired a controlling stake in Capital Economics Ltd. from LDC for £95mn.
• EmergeVest acquired C M Downtown, Ltd. from Investec Bank for £75mn.

Largest Funds Closed in 2018

• EQT VIII (Sweden) closed on €11bn in February 2018, making it the largest fund closed so far.
• American Securities Partners VIII exceeded its $6bn target in four months, closing on $7bn.
• BC European Cap X (South Korea) reached its €7bn target in January 2018.

Conclusion

The document outlines the evolving landscape of venture capital in emerging markets, emphasizing the dominance of early-stage strategies and the significant role of SWFs in private equity. It highlights the growing interest in private equity from SWFs, the shift toward alternative investment structures, and the strong performance of emerging market funds compared to their North American and European counterparts. Additionally, it provides insights into recent institutional commitments, notable deals, and the largest private equity funds closed in 2018.