Fidelity, SoftBank, & Sequoia Invest USD1.7b in Chinese Logistics Player; L Catterton Exits Mexico’s Cholula via USD800m Sale to McCormick
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1-2 December 2020 | China Regulatory Update | Latin America Update | Industry News | Programming | EMPEA Data | Member Profile 


China Regulatory Update

China Update: Steps to Renew Global Investor Sentiment Amidst Pandemic Recovery

China’s economy has returned to growth in post-COVID-19 recovery, and the government is looking to harness renewed investor sentiment with regulatory updates designed to further open financial markets to international capital.

  • Mainland Chinese regulators have approved updates to the Qualified Foreign Investor (QFI) program, streamlining the application process and expanding the asset classes available to international investors to include convertible bonds, non-performing loans, and mezzanine capital.
  • While several domestic fund managers have raised China-focused mezzanine funds, EMPEA’s data indicates that they comprise only a small fraction of total private capital raised in China, suggesting new opportunities in a competitive landscape.
  • Regulators have also simplified requirements for listing on the Shenzhen ChiNext Exchange, adopting a registration-based IPO system intended to encourage greater transparency and support smaller technology companies.

EMPEA member Clifford Chance shares additional insight into these recent developments and an update on Hong Kong regulations for an upcoming edition of the Legal & Regulatory Bulletin. Access an early copy of the Clifford Chance article.

 

 

Latin America Update

EMPEA Latin America Council Meeting: Key Takeaways

Last month, investors active on EMPEA’s Latin America Council gathered to discuss the current context for private investment in the region, including measures taken to weather the current pandemic, the outlook for traditional private equity versus venture capital and tech, and the boom in public market exit opportunities.

Newly added Latin America council members include Elizabeth Bell, Principal, Investments Team, Jaguar Growth Partners, Scott McDonough, Co-Founder, Managing Director, Alta Growth Capital, and Juan Alberto Franco, Managing Partner, Nexus Group.

Key takeaways from the discussion:  

  • While private equity investment in Latin America has slowed in 2020, venture capital and tech investment has remained resilient.
  • Certain sectors have also showed resilience including telecom, logistics, health, education, fintech, and renewables.
  • Aligned with global peers, fund managers active in Latin America are focused on supporting portfolio companies experiencing pandemic-related challenges.
  • Brazilian family offices are increasingly interested in allocating capital to illiquid alternative investments. In contrast, Latin American pension funds are being pressured for immediate liquidity to support early withdrawals in countries like Chile and Peru.
  • A window of opportunity in Brazilian public markets has provided attractive returns to investors, as demonstrated by the IPOs of Sequoia Logistica and Quero-Quero.

 

Industry News

Axiom Asia Reaches USD1.8b Final Close for Asia-Focused Fund-of-Funds

Region: Asia

Axiom Asia Private Capital has reached a USD1.8b final close for Axiom Asia VI, its sixth Asia-focused fund-of-funds. Read more

L Catterton Exits Mexican Hot Sauce Producer Cholula via USD800m Sale to McCormick

Region: Latin America

L Catterton has exited Cholula, a Mexico-based hot sauce producer and distributor, through a USD800m sale to McCormick & Company. The transaction is subject to approval. L Catterton acquired the company in 2019. Read more

GL Ventures Leads USD265m Series C for Chinese SaaS Edtech Epower Education Online

Region: Asia

GL Ventures, the VC arm of Hillhouse Capital, led a USD265m Series C for Epower Education Online, a China-based SaaS company active in the education sector, with participation from Tencent, SIG, Ince Capital, and Gaocheng Capital. Read more

Crescera and Vulcan Acquire Minority Stake in Brazilian Fintech Nelogica for USD103m

Region: Latin America

Crescera Capital and Vulcan Capital have acquired a minority stake in a Brazil-based fintech Nelogica for BRL550m (approximately USD103m) at a reported valuation of BRL2.9b (approximately USD542m). Read more

A.P. Moller Acquires 49% Stake in Moroccan Grain Terminal Operator MCM

Region: Africa

A.P. Moller Capital, through its Africa Infrastructure Fund I, has acquired a 49% stake in Morocco-based grain terminal operator Mass Céréales al Maghreb (MCM).  Read more

DPI Invests in CMPG to Support Merger with CAS

Region: Africa

Development Partners International (DPI) has injected additional capital in Moroccan water infrastructure and irrigation solutions provider Compagnie Marocaine de Goutte à Goutte et de Pompage (CMPG) to fund its combination with Moroccan agricultural supplier Comptoir Agricole de Souss (CAS). DPI first invested in CMPG in 2018. The transaction is subject to regulatory approvals and is expected to close in Q1 2021.  Read more

Ninety One’s EAIF Provides USD31m in Financing to Helios-Backed Access LNG

Region: Africa

Ninety One’s EAIF has agreed to provide USD31m in financing to Access LNG, a provider of specialist floating liquid natural gas infrastructure backed by Helios Investment Partners, to support the construction of a new liquid natural gas storage and regasification facility in Ghana. Read more

Apis Partners Leads USD35m Series B for Indian Fintech Cashfree

Region: Asia

Apis Partners led a USD35m Series B for India-based digital payment services provider Cashfree, with participation from Smilegate Investment and Y Combinator.  Read more

Ventureast and Eight Roads Sell Indian Biotech Richcore Lifesciences to Eight Roads-Backed Laurus Labs for USD33m

Region: Asia

Ventureast and Eight Roads Ventures have sold their majority stake in India-based biotechnology firm Richcore Lifesciences to Eight Roads-backed Laurus Labs for INR2.47b (approximately USD33m). Read more

XP Private Equity Acquires Minority Stake in Brazilian Digital Skincare Brand Beyoung for USD26m

Region: Latin America

XP Private Equity has acquired a minority stake in Brazil-based digital skincare and make-up brand Beyoung for BRL140m (approximately USD26m).  Read more

Delivery Hero Leads USD5.5m Investment in UAE’s Logistics Startup Quiqup

Region: Middle East

Delivery Hero led a USD5.5m funding round for Quiqup, a UAE-based startup providing on-demand and same-day delivery services for retailers, with participation from Cedar Mundi, Jobi Capital, and Trasnmed. Read more

KaszeK Ventures Leads USD2.5m Seed Round for Brazilian Antifraud Startup Legiti

Region: Latin America

KaszeK Ventures led a USD2.5m seed round for Brazil-based antifraud startup Legiti, with participation from Global Founders Capital, Iporanga Ventures, and Norte Ventures. Read more

Fidelity, SoftBank, and Sequoia Lead USD1.7b Investment in Chinese Truck-Hailing Solutions Provider Manbang

Region: Asia

Fidelity International, SoftBank Vision Fund, and Sequoia Capital China led a USD1.7b investment in Manbang Group, a logistics firm specializing in truck-hailing solutions. Hillhouse Capital, GGV Capital, YF Capital, Tencent, Baillie Gifford, Lightspeed China Partners, All-Stars Investment, Xiang He Capital, and CMC re-upped. Read more

DCL Reaches USD455m Final Close for China Distressed Assets Fund

Region: Asia

DCL Investments has reached a CNY3b (approximately USD455m) final close for its latest RMB-denominated fund focused on distressed investment opportunities in China.  Read more

Matrix and Efung Lead USD135m Series E for Chinese Drug Developer Biostar

Region: Asia

Matrix Partners China and Efung Capital led a CNY890m (approximately USD135m) Series E for Beijing Biostar Technologies, a China-based developer of anti-tumor, small-molecule chemical drugs, with participation from CCB International Capital, Sinopharma-CICC Capital, Tianjin Venture Capital Management, and Chengdu Tianfu International Bio-Town Investment & Development. Read more

AfricInvest Acquires Minority Stake in Fidelity Bank Ghana

Region: Africa

AfricInvest has acquired an undisclosed minority stake in Fidelity Bank Ghana through its two funds, AfricInvest Fund IV and FIVE (AfricInvest Financial Inclusion Vehicle), from Kagiso Tiso Holdings. Read more

Tiger Global and Dragoneer Invest in Indian Edtech Unacademy

Region: Asia

Tiger Global Management and Dragoneer Investment Group have reportedly invested an estimated USD75-100m in India-based edtech Unacademy at a reported USD2b valuation.  Read more

CPP Investments to Provide USD98m Credit Financing to JSW Projects for Acquisition of BMM Ispat

Region: Asia

CPP Investments, through CPPIB Credit Investment Inc, has agreed to provide INR7.25b (approximately USD98m) in credit financing to back the acquisition of Indian iron ore pellets producer BMM Ispat by JSW Projects, a unit of global corporation JSW Group.  Read more

Kartesia Provides EI-Backed Nu-Med with USD38m Refinancing Package

Region: CEE & CIS

Kartesia, through its Kartesia Credit Opportunities (KCO) IV and V funds, has provided Nu-Med, a Poland-based oncology center operator backed by Enterprise Investors (EI), with a EUR32m (approximately USD38m) refinancing package. Read more

Digital Colony-Backed Highline to Acquire Brazilian Telecom Infrastructure Provider Phoenix Tower from Blackstone

Region: Latin America

Digital Colony-backed Highline do Brasil has agreed to acquire Phoenix Tower do Brasil, a Brazil-based telecommunications infrastructure provider, from Blackstone. Equity financing for the transaction was provided by Digital Colony. Details of the transaction were not disclosed. Read more

Abris Acquires Polish Health Care Network Operator Scanmed

Region: CEE & CIS

Abris Capital Partners, through its Abris CEE Mid-Market III fund, has acquired 100% of Poland-based health care network operator Scanmed from Life Healthcare Group for an undisclosed amount. The transaction is subject to regulatory approvals and is expected to close in Q1 2021.  Read more

Baring Vostok and Winter Capital Invest in Russian Edtech Skyeng

Region: CEE & CIS

Baring Vostok and Winter Capital have invested an undisclosed amount in Russia-based edtech Skyeng. Read more

H.I.G. Capital Acquires Brazilian Internet Service Provider Desktop Sigmanet

Region: Latin America

H.I.G. Capital has acquired Brazil-based internet service provider Desktop Sigmanet. Read more
Programming

Global Private Equity Conference 2021 | 17-20 May 2021

Registration coming soon
 

SuperReturn Emerging Markets | 30 November-3 December 2020
EMPEA members receive a 15% discount (Contact support@empea.net for discount code)
(Part of SuperReturn Growth Markets Virtual for 2020)

 
FT Investing for Good USA | 2 December 2020
EMPEA members receive a 10% discount (Contact support@empea.net for discount code)
 
Singapore FinTech Festival (SFF) | 7-11 December 2020
 
Latest EMPEA Data & Intelligence
EMPEA’s Mid-Year 2020 Global Private Capital Industry Data & Statistics*
2020 YTD Trends in VC+Tech Dealmaking
2020 Global Limited Partners Survey
Legal & Regulatory Bulletin – Issue No. 29, June/July 2020
 Trends in Global VC+Tech

* Available to EMPEA members only

 

Member Profile

EMPEA Member Profile

EMPEA recently spoke with Carlos Testolini at Oria Capital on the opportunity within the enterprise software sector in Brazil, as the onset of the COVID-19 pandemic has accelerated business digitization and SaaS adoption.

“The explosive growth of SaaS over the last decade has meant that the landscape has become quite crowded, particularly in developed markets. Valuations are exceedingly rich, and markets can become complacent with subsidized growth. As investors seek growth elsewhere, in a sector they already know well, Brazilian tech companies can be very attractive.”

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