AVCJ - News Letter Oct 15 2007


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AVCJ - News Letter Oct 15 2007

  1. 1. 20th Anniversary Published by Asian Private Equity AVCJ’s INDIA e-letter & Venture Forum 2007 Vo l u m e 2 , N u m b e r 1 9 , O c to b e r 1 5 , 2 0 0 7 Hong Kong w w w . avcj. c o m 14-16 November 2007 Macquarie, IFC to launch $1bn infrastructure fund Macquarie Bank and World Bank investment arm The Macquarie-IMF investment vehicle joins the In This Issue: International Finance Corp (IFC) plan to launch a $1 billion growing number of funds focused on Indian infrastructure. infrastructure fund targeting India and neighboring They include the $1 billion 3i India Infrastructure Fund Macquarie, IFC to launch $1bn infrastructure fund ...1 countries in South Asia. Macquarie is to take a 90% stake launched in September and a $5 billion fund jointly in the fund’s asset management company, with IFC holding founded by Blackstone Group and Citigroup that was KKR, Cerberus reportedly plan India presence ...1 10%. announced in February this year. According to an IFC statement, the proposed Deutsche Bank in $425m property KKR, Cerberus reportedly plan India Macquarie India Infrastructure Opportunities Fund will investment ...3 presence invest in areas that include: telecom towers; water and Lehman, Och-Ziff invest $200m in hotel Kohlberg Kravis Roberts and Cerberus Capital are waste treatment; roads; airports; ports; rail; and assets venture ...3 reportedly planning to set up separate operations in the relating to the generation, transmission and distribution StanChart charges up Powerica with $50m subcontinent. Local media, quoting unattributed sources, of power. The closed-end fund, which is to be registered deal ...3 said that KKR had contacted several local law firms in its in Bermuda, is subject to approval by the boards of Movers & Shakers quest to seek assistance in the establishment of an India Macquarie and IFC. office. Bhuta joins Thomas Weisel’s fund of funds venture ...5 KKR has so far only closed one deal in the country: last Norwest expands with Shah in Mumbai ...5 year’s $900 million acquisition of Flextronics Software, which marked India’s first leveraged buyout transaction. IFC leads $82m funding round in South Meanwhile, Cerberus Indian Bank ...6 is reportedly in the final Warburg, ICICI head for exits ...6 stages of appointing a Helion invests in Hurix for e-learning CEO for India. The firm outsourcing ...7 has not yet finalized a News Briefs ...7 deal in the continued >> p3 Bridge construction in Bangalore 1
  2. 2. Business Risk Technology Risk Internal Audit M&A Risk P rotiviti is a leading global provider of risk consulting services with over 55 locations on 5 continents, including offices INTRODUCING in Mumbai, New Delhi and Bangalore. For a high growth market such as India, we have deep skills and expertise in helping PROTIVITI organizations to navigate risks during and after M&A. Our M&A Risk Advisory Services can assist companies in any phase of the process, including: • Finance and operations due diligence • Business plan reviews THE LEADER IN • Corporate intelligence and promoter background checks • INDEPENDENT Information technology due diligence • Environmental, health and safety due diligence • Post-investment investor assurance reviews RISK CONSULTING To learn more, please contact Managing Director, Mritunjay Kapur at +91 9810438888, email mritunjay.kapur@protiviti.co.in or visit protiviti.co.in. © 2007 Protiviti Inc. An Equal Opportunity Employer. Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services. 0607 2
  3. 3. India e-letter p1 >> continued country yet, but had been named as a potential suitor for project in Mumbai, while ICICI Venture acquired a 25% INDIA e-letter a few local companies, including low-cost airline Deccan stake in the developer’s land plot in Thane for $25 million. Aviation. Lodha says it has more than 25 million square feet of land published fortnightly by By comparison,Warburg Pincus is among the country’s across 27 projects in Mumbai. It claims to have a land bank biggest private equity investors, having established a of more than 4,000 acres. presence in the country more than a decade ago. It has Lehman, Och-Ziff invest $200m in hotel invested more than $1 billion over 80 deals. Meanwhile, venture over the past year alone, Blackstone Group closed five ASIAN VENTURE CAPITAL JOURNAL Lehman Brothers and New York-based hedge fund Och- deals worth a total of about $700 million. Founded in 1988 Ziff Capital Management Group have agreed to invest www.avcj.com Deutsche Bank in $425m property deal $100 million each in a hotel venture. Mumbai-based Future Capital Holdings is backing the venture, which Deutsche Bank has invested $425 million in Mumbai- Managing Editor Chairman & CEO plans to build a chain of four- and five-star hotels in the based real estate developer Lodha Group. The lender Paul Mackintosh Dan Schwartz country. It will also invest in other hotel projects in various – Germany’s biggest – India e-letter Editor Indian cities. will take a 25% stake in a Publisher Yvonne Chan Allen Lee Future Capital, the financial services arm of India’s special purpose vehicle US Editor largest retailer, Pantaloon Group, reportedly plans to (SPV) founded by Lodha. Rebecca Fannin Vice President, Administration deploy the $200 million over the next 12 months and raise In turn, the SPV will launch Harmony Heung Circulation Manager a further $300 million from investors over the next three three real estate projects Sally Yip to five years. Future Capital manages private equity fund in the Mumbai suburbs of Advertising Sales Designer Anil Nathani Indivision and two real estate funds: Kshitij and Horizon. Thane and Dahisar. May Cheng Christopher Cheng India has an insufficient number of hotel rooms to The projects, which accommodate the growing needs of business and leisure cover a total of 70 acres, AVCJ Group Limited Tel: (852) 3411-4900 travelers. Industry estimates indicate that the country will will be compliant with rules 20th Floor, Tower 2, Admiralty Centre, Fax: (852) 3411-4999 18 Harcourt Road, Admiralty, E-mail: info@avcj.com require an additional 150,000 hotel rooms in the next governing foreign direct Hong Kong Web Site: www.avcj.com three years. investment in property, according to Lodha. Last The Publisher reserves all rights herein. Reproduction in whole StanChart charges up Powerica with year, JP Morgan Chase or in part is permitted only with the written consent of AVCJ $50m investment Group Limited. India e-letter is delivered in QuVu format, which invested $60 million in is licensed from and used by permission of Qiosk.com, INC. Lodha Bellisimo, a luxury Standard Chartered Private Equity has invested $50 Lodha Bellisimo Copyright © 2007 residential high-rise million in Mumbai-based Powerica, a continued >> p6 3
  4. 4. Kishore Biyani Vineet Nayyar Roopa Purushothaman Founder & CEO Vice Chairman, Chief Economist FUTURE GROUP Managing Director FUTURE CAPITAL HOLDINGS Managing Director & CEO PANTALOON RETAIL TECH MAHINDRA Keynote speakers India 2007 Asian Private Equity & Venture Forum 3 – 5 December 2007, Mumbai Global perspective, local opportunities Confirmed speakers (partial list) Doug Coulter Ashish Dhawan Lindel Eakman Sumir Chadha Rajesh Agarwal Head of Private Senior Managing Director - Private Equity Managing Director Managing Director India’s economy has expanded at more than eight percent each year for the past four years. This growth has Equity Asia Pacific Director UNIV. OF TEXAS SEQUOIA CAPITAL AIG been driven largely by the steadily increasing demand of India’s consumers for new and better goods and LGT CAPITAL CHRYSCAPITAL INVESTMENT INDIA PARTNERS LTD MANAGEMENT CO. services, creating great opportunities for private equity investors in the retail and real-estate sectors as well as in healthcare, education and associated industries. Meanwhile the country’s structural challenges mean that demand for new travel and transport infrastructure continues to grow, coupled with a growing need for power, water and sanitation facilities for its burgeoning cities. The combined efforts of energetic and ambitious promoters, and seasoned and farsighted investors are creating Jay V. Jegannathan Archana Hingorani Steven Enderby E. David Ellington William Greene a growth phenomenon that few can have failed to notice. Join over 400 of the most active and successful India Managing Director Executive Director Partner Trustee & Managing Director EVOLVENCE CAPITAL IL&FS INVESTMENT ACTIS Commissioner MPM CAPITAL fund managers, their limited partners and advisors in Mumbai this December to get the full story. MANAGERS SFERS Global series sponsor Principal lead sponsor Co-lead sponsors Co-sponsors Ronil Sujan Anil Thadani Atul Kapur Luis Miranda Harsha Raghavan Regional Head – Asia, Chairman Managing Partner President & CEO Executive Life Sciences SYMPHONY INDIVISION IDFC PRIVATE Director, Principal RABOBANK INVESTMENT EQUITY Investments INTERNATIONAL MANAGERS LTD GOLDMAN SACHS Supporting Public relations partner Media partners Organised by organisation Contact Matthew Swainson for more details T: +(852) 3411 4950 E: Matthew.Swainson@incisivemedia.com Visit www.avcj.com/avfindia for continuous speaker updates 4
  5. 5. India e-letter MOVERS & SHAKERS Bhuta joins Thomas Weisel’s fund early 2006, after hiring Sreenivasulu “Srini”Vudayagiri as accomplishments to Norwest. Previously, he was at director and head of asset management for its wholly eBay, where he was senior director of strategy and of funds venture owned subsidiary, Thomas Weisel International. ventures, responsible for evaluating acquisitions and Vudayagiri, previously with Actis and Intel Capital, investments for the online auction site globally. At Pranav Bhuta has left the private equity desk at Ernst & was also tasked to evaluate fund of funds opportunities eBay, he also led venture investment in the Americas, Young in India to join a new venture by San Francisco- in India. However, it is unclear how far this progressed, racking up such hits as classified listings site Craigslist headquartered merchant banking group Thomas as is the fate of the Thomas Weisel Partners India and mobile chat service Skype. He was also a CFO Weisel Partners. Opportunity Fund. With a target size of up to $500 and director of operations for Based in Mumbai, Thomas Weisel Global Growth million, the fund was reportedly to lead the firm’s Baazee.com, a large shopping Partners has run a fund of funds investment strategy in the country. Earlier this year, website in India. Rounding and secondary investments there were reports that indicated the fund was still in out his resume, Shah was practice for many years out of formation, although the firm has written off its balance a manager at KPMG India’s Silicon Valley and Boston. Its sheet a $15 million investment in a fund raised by the corporate finance arm, where India venture marks its latest private equity arm of Infrastructure Development he handled M&A transactions move into Asia. Finance Company. Thomas Weisel Partners declined in the tech, media and telecom Bhuta said he “will be to comment. sectors. fo c u s e d o n i nve s t m e nt s Norwest has earmarked i n p r i va t e e q u i t y f u n d s Norwest expands with Shah in Mumbai 10% of its recently raised investing into India, which Niren Shah has joined Norwest Venture Partners as $650 million fund for India, will be primarily growth-stage Thomas Weisel Niren Shah managing director based in Mumbai. The move is part where it has made five direct focused funds.” He added: “I of the Silicon Valley firm’s commitment to expand its investments. Firm managing partner Promod Haque am very excited about this new opportunity to work operations in the country. said he expects to hire several additional investment in this new role.” Shah will focus on investments on digital media, professionals in the country. “India has developed Thomas Weisel Partners has made several moves mobile communications, and consumer Internet into a world-class technology and global investment to set up operations targeting Asia, particularly India. companies. He brings a stellar background of venture destination,” said Haque. The firm opened a Mumbai office in Nariman Point in 5
  6. 6. India e-letter IFC leads $82m funding round in South maker of power generating equipment.The size p3 >> continued Subscribe Indian Bank of the stake is reportedly between 10%-15%. Now AVCJ e-letters Powerica is one of India’s leading maker of generator World Bank investment arm setups – commonly called gensets – which are self- International Finance Corp Edited and written by the staff of the Asian Venture Capital Journal Weekly and Private Equity Asia, AVCJ e-letters bring contained and dedicated electrical generation systems. Its (IFC) has led an $82 million more focused private equity news than ever before. In concise bulletin format, to match the pace of Asia’s accelerating growth gensets are used by companies in the IT, textile, chemical investment in Kerala-based South Indian Bank. IFC invested and the exploding private equity markets of the region, AVCJ e- and construction industries. $17.6 million for a 4.8% stake. It was joined by mutual letters are offered to our charter subscribers on a complimentary opt-in basis. The privately-held company plans to use the funds to fund manager Fidelity Investments, Bangalore-based UTI AVCJ offers 7 separate e-letters - now available or forthcoming: — build a manufacturing facility near Mumbai and upgrade Ventures and New York-headquartered hedge fund Blue Now Available existing plants. Powerica operates eight production Ridge Capital, which each invested about $12.7 million. facilities in the country. Other investors that took part in the funding round In September, Goldman Sachs and GE Power jointly include US hedge funds DE Shaw and Moon Capital invested in Sudhir Gensets, a Gurgaon-based generator Management, which acquired respective stakes of 1.6% Australia and New Zealand India Japan setup manufacturer. The financial details of the deal were and 1.8%. not publicly announced, but Indian media reports indicate The deal is subject to regulatory approval. After the Available 2007 that between $60 million and $75 million was invested for transaction is finalized, 47.4% of the bank will be owned a stake of about 10%-15%. by foreign institutional investors, slightly below the 49% foreign ownership cap. China (in English) Middle East Warburg, ICICI head for exits Warburg Pincus has reduced its stake in Gujarat-based plastic and textile manufacturer Sintex Industries, selling Hedge Funds Real Estate a 14.3% stake in on the open market. The private equity AVCJ–ASIA’S firm netted $142.4 million from the transaction, which PRIVATE EQUITY NEWS SOURCE lowered its stake to 12.1%. Warburg in 2005 had acquired a 17.9% stake in Sintex for $18.7 million. It was followed by an open tender offer at Rs 286.4 per share ($6.82 at recent exchange rates), compared to the Rs 350 ($8.90) per share price offered by Powerica generator setup For more information, please visit www.avcj.com Warburg in the block deal. At the end of June 2007, it held or email AVCJsubscriptions@incisivemedia.com. 26.4% of Sintex. continued >> p7 6
  7. 7. India e-letter NEWS BRIEFS Helion invests in Hurix for e-learning The shares were sold to a group of foreign p6 >> continued outsourcing institutional investors comprising HSBC, Lehman Brothers, Merrill Lynch, Master Trust Bank of Japan and India’s Helion Venture Partners is pursuing the growing US hedge fund Batterymarch Financial Management. outsourcing opportunities in e-learning and publishing, 3i has raised $500 million for the first close Sintex is listed on the Bombay Stock Exchange. with its $5.1 million investment in of its India Infrastructure Fund. Launched in Meanwhile, Mumbai-based ICICI Venture sold its Mumbai-based Hurix Systems. August, the fund has a total target size of $1 remaining 6.9% stake in Deccan Aviation – the owner billion. 3i said it hopes to raise an additional Helion was the sole investor $500 million from investors in the Middle East, of low-lost carrier Air Deccan – through a block trade in the Series B round, according US and Europe. on the National Stock Exchange. ICICI. The shares were to Kanwaljit Singh, the firm’s Paris-based global luxury brands giant Louis sold for $25.3 million through a block deal on National managing director. Fast-growing Vuitton Moet Hennessy (LVMH) is reportedly Stock Exchange. Hurix was founded in 2000 and has planning to launch an emerging markets In 2005, ICICI Venture paid $50 million for a 19% a footprint in Asia as well as North private equity fund to invest in brands and retail chains. The size of the fund was not yet stake in Deccan. Its stake was diluted to 14% after the America and Europe. Its client list Kanwaljit Singh known, but the company is said to have plans airline’s IPO last year. In April 2007, ICICI sold a 3.25% includes multinationals such as to allocate up to $700 million for India, where stake of its holding to UBS Securities Asia for $8.14 Pearson Learning Group, McGraw-Hill Group, DHL Express, it will target jewelers, traditional ayurvedic medicine producers and spas. It will also focus million. In the following months, ICICI reduced its LG Electronics, Johnson & Johnson and Pepsi. on real estate acquisitions for luxury hotels and shareholding further to just under 7%. “The availability of high quality and creative talent, spas. The fund is slated to be launched in the next 12 months. combined with the technology skills in India makes it a compelling proposition,” said Singh. He will join the board Citigroup, Merrill Lynch and two hedge funds along with Helion’s CFO and investment advisor Natarajan have invested a total of about $160 million in the Multi Commodity Exchange (MCX) of India Ranganathan. – the country’s largest commodity bourse. The Singh, a former director and co-head of The Carlyle US-based banks each acquired a 5% stake, while Group’s India venture operations, founded Helion last year hedge funds Passport Capital of San Francisco and London’s GLG Partners purchased stakes of with Walden International veteran Rahul Chandra and tech 3% and 2% respectively. The investments value entrepreneurs Sanjeev Aggarwal and Ashish Gupta. MCX at $1.06 billion. Aside from investments in outsourcing, Helion’s Delhi-based brokerage Almondz Global team in India invests in Internet, mobile, and technology Securities said it will par tner with UK companies from its $140 million, India-focused venture independent investment bank Noble Group to launch a private equity fund targeting India’s fund. Its deal with Hurix fits well within the firm’s portfolio infrastructure sector. The target size of the fund Air Deccan of 10 companies in the software, voice SMS, online travel, was not disclosed. and outsourcing industries. 7
  8. 8. Asian Private Equity 20th Anniversary & Buyouts Forum Asian Private Equity & Conrad Hong Kong Venture Forum Asian Venture Capital Hong Kong & Tech Forum 14-16 November 2007 Island Shangri-La Global perspective, local opportunities Keynotes Confirmed Speakers (Partial List) ‑ Lead sponsors ‑ Global series sponsor global titans HAMIlton JAMEs DAVID rubEnstEIn JAMEs CoultEr stEPHEn PAglIuCA JonAtHAn M. nElson President & Co-Founder & Founding Partner Managing Director Founder & Chief Executive Officer tpG cApitAl, lp BAin cApitAl providence eQuity Chief Operating Officer Managing Director ‑ Co‑sponsors ‑ BlAckstone Group the cArlyle Group pArtners Asian Private Equity Founding Fathers Economist briefing lEwIs rutHErFurD stEPHEn s. roACH Dr. VICtor k. Fung VICtor CHu AnIl tHADAnI Managing Director Chairman Chairman Chairman Chairman ‑ Legal sponsors ‑ ‑ Insurance sponsor ‑ inter-AsiA venture morGAn stAnley AsiA li & FunG / First eAstern symphony investment mAnAGement prudentiAl AsiA investment Group mAnAGers limited Institutional Investors ‑ Knowledge partner ‑ ‑ Supporting organization ‑ ‑ Public relations partner ‑ ‑ Media partners ‑ ‑ Organized by ‑ PHIlIP bIlDEn MArk DElAnEy JonCArlo r. MArk MArCus sIMPson Head, Global Private Equity Managing Director CIO Sr. Portfolio Manager Qic hArBourvest pArtners AustrAliAnsuper calpers An incisivemedia company 8
  9. 9. Asian Private Equity & Buyouts Forum Asian Venture Capital & Tech Forum Confirmed Speakers (Partial List) Confirmed Speakers (Partial List) rAlPH PArks k.y. tAng DAnIEl CArroll MICHAEl kIM AnDrEw lIu MAArtEn ruIJs tED sCHlEIn lIP-bu tAn DAVID CHAo yosHIto HorI JAMEs H. PAul AsEl boEttCHEr Chairman - Asia Chairman & Managing Partner - Asia Partner Managing Partner CIO Managing Partner Chairman Co-Founder & Managing Partner Managing Partner oaktree capital Managing Partner tpG capital mBk partners cvc Asia pacific kleiner perkins Walden Globis capital nokia Growth partners & CEO, Asia General Partner General Partner (hong kong) Affinity equity partners ccmp capital Asia caufield & Byers dcm partners international Focus ventures stEPHEn trEVor X.D. yAng PEtEr AMour HArJIt bHAtIA kEnny blooM nAVIn CHADDHA norMAn CHEn CHArlEs C. CoMEy AsHIsH guPtA MElIssA guzy nICHolAs bloy MArk CHIbA Managing Director & Managing Director and Co- Chief Executive Officer Managing Partner CEO Managing Director Partner, Healthcare Managing Partner Managing Director Managing Director Founding Partner Group Chairman & Co-Head of Private Equity Head of Carlyle Asia Partners AiF capital credit suisse Asia vision mayfield Fund Fidelity Asia ventures morrison & helion venture vantagepoint venture navis capital partners Partner morgan stanley the carlyle Group Foerster llp partners partners the longreach Group private equity Asia rEbECCA JAMEs MI MArlEEn groEn brIAn koo kAIsEr kuo rICHArD lI ArCHAnA CHrIs Hsu grAnt kEllEy MEng Ann lIM PErry HA AsHIsH DHAwAn MACkInnon HIngorAnI Director of Corporate Chief Executive Officer CEO & Managing Partner Group Director, Executive Director CEO & Principal & CEO Partner Founder & Sr. Managing Director Greenpark capital lG venture investment Digital Strategy legend capital Asst. Professor, university of Development, colony capital Actis Managing Partner Managing Director chryscapital Executive Director ogilvy & mather hong kong Fmr. Bureau Greater China Abax Global capital Asia pacific dFJ Athena il&Fs Chief, Tokyo and Beijing, cnn Google Advertising MuHAnnAD JEAn ErIC sAlAtA JoHn sun ClAuDIA FAn AyAz ul-HAQuE robErt swIFt bo sHAo QuInn tAw luIs MIrAnDA robErt PEtty HEnry b. ngyuEn MICHAEl sCown QubbAJ MunCE Founder & CEO Executive Director General Partner, matrix Managing Director CEO Executive Director President & CEO Managing Partner Managing Director, Managing General Baring private equity new horizon capital eplanet ventures menA infrastructure partners Managing Director china media idFc private equity clearwater capital Managing Director Treasury Partner Asia Gulf capital Fund Chairman, novamed exchange iBm venture capital partners idG ventures vietnam intel capital pharmaceuticals Group Visit avcj.com/ avfhongkong for continuous speaker updates AnDrEw yAn CHrIstoPHEr A. Doug HussEIn MArk roPPEll AnDrEw wHAn FErnAnDo DAVID nott sIng wAng sonny wu gAry rIEsCHEl nEIl sHEn lAskowskI lowEnstEIn kHAlIFA gAsPAr Managing Partner Partner Partner, Private Equity Regional Leader Partner Founder Founder & Founding Managing cadwalader, Managing Director sAiF partners kpmG tpG Growth Gsr ventures clifford chance President Partner Managing Director Managing Director Partner citigroup private equity council mvision Wickersham & taft llp Alvarez & marsal Qiming venture partners sequoia capital C o n t a c t A l l e n L e e f o r m o r e d e t a i l s T : + ( 8 5 2 ) 3 4 1 1 4 9 6 6 o r 3 4 1 1 4 9 4 5 E : AV C J f o r u m s @ i n c i s i v e m e d i a . c o m 9