[08] Alta Views: your fortnightly scoop of Private Capital Markets

Greetings Alta-natives! This week, we cover how private debt is performing strongly amid turbulent markets, the spillover effects of Alibaba’s split on China’s regulations and Singapore’s efforts to drive the alternative investments industry. 

Private debt overcomes market turbulence to emerge stronger

• Amidst strong macroeconomic headwinds, global private debt continues to display a growing momentum in the private markets, setting a new record of US$224 billion of funds raised in 2022. Annual fundraising in 2022 has tripled since 2013, and has been rising for 5 straight years at a CAGR of 11.1%
• With traditional banks being less willing (and able) to lend in the current market conditions, private lenders are playing a more crucial role, especially to larger borrowers and companies. Private lenders have closed more than 30 deals of amounts exceeding US$1 billion in 2022, marking a 600% increase in deal count as compared to that in 2019. 
• Private lenders can offer access to better yields at lower volatility, especially with the current rising interest rates. As Mitsubishi UFJ Trust and Banking Corporation and Nomura Private Capital both made moves to capture opportunities in the space in recent weeks, the viability and growing adoption of the strategy is expected to remain evident in 2023. 

Alibaba’s historic split and its spillover effects on China’s regulations

• Alibaba’s shares rose more than 14% intraday after announcing the split of its US$220 billion business into 6 units, allowing its divisions to operate autonomously and setting them up for future independent capital raises and IPOs
• The groundbreaking reorganisation is expected to draw support from regulators, as it addresses Beijing’s previous concerns during the crackdown about the conglomerate’s concentrated power and influence 
• Furthermore, Alibaba's actions could potentially catalyse the loosening of China’s regulations on businesses, as its leaders make strides to restore confidence and attract foreign capital via trade and investment. As China seeks to reinvigorate its economy, investors can keep a lookout for businesses benefiting from the government’s measures and support.

MAS announces efforts to grow Singapore’s alternative investments industry

• Singapore’s MAS is set to roll out further support to capitalize on present growth opportunities in the nation’s financial industry, including the increase of alternative assets allocation by investors and advancement in technology infrastructure.
• By providing incentives for asset managers to set up VCCs in Singapore and support for the digitalisation of financial infrastructure, MAS seeks to capture investors’ rising demand and boost their access to the alternatives space and its products. 

Sustained Energy From Renewables

• The global initiatives addressing the climate crisis have led to the energy transition towards renewable energy sources. This transition has also had a noticeable impact on investment activities.
• Despite the prevailingly tough macroeconomic conditions, global investments into the renewable energy space rose 17% from US$423 billion in 2021 to US$495 billion in 2022
• In Asia Pacific, investments into the renewables space made up the majority of that in the energy and natural resources sector, with deal activity experiencing a 47% year-on-year growth
• Governments are pushing policies and initiatives to encourage businesses to adopt decarbonisation practices. Starting April 2023, EnterpriseSG will launch new subsidised courses to educate SMEs on methods of decarbonising and the tools and resources available for tracking
• With sustained governmental push, businesses are shaping up to be more attractive as investment opportunities to capture capital from investors, especially impact-focused GPs, as their interest levels continue to increase for the foreseeable future

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Canva, Bibit, SwipeRx, Funding Societies, Alodokter discover who’s trending with our investor network! Researched by experts, voted by insiders.

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💸 Notable Fundraises

Kredivo | US$270M | Series D | Financial Technology

Kredivo “Buy now, Pay later” enables e-commerce buyers to apply and qualify for instant credit and pay back over time. It provides e-commerce shoppers instant credit financing based on real-time analysis, enabling customers to enjoy simple, transparent, and honest pricing for all their credits.

PhonePe US$200M | Strategic Investment | Financial Technology

India-based PhonePe is a mobile payments app that allows you to transfer money instantly to anyone, by using just their mobile number.The company specialises in an online payment system based on an Unified Payments Interface and a digital wallet, enabling users to make transactions with anyone using a mobile number.

Reebelo | US$29M | Series A | Ecommerce

Reebelo is a leading refurbished-electronics marketplace that aims to reduce e-waste by building the circular economy for tech. The platform enables consumers to buy good quality second hand sustainable electronics, such as smartphones, iPhones, tablets, desktops, and a plethora of other products, and offers extended warranty without any risk

About Alta Views

A fortnightly collection of the latest news from Private Capital Markets. Put together by Alta’s team of analysts, we bring you the most critical and timely pieces from private markets, to help you navigate the broad horizon. Stay tuned as we bring you the most notable fundraises, analysis on industries and companies trending within investor networks, the latest headlines, and more!

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About Alta

Alta is Southeast Asia’s largest digital marketplace for alternative investments. Alta gives investors direct access to invest and trade in a wide range of curated alternative assets, from direct investment into early to late-stage private companies, PE/VC funds, asset-backed securities of luxury assets, real estate, and more.

As a licensed integrated marketplace, Alta brings the trading and distribution of securities, fund management, and payment solutions under one roof. Through its blockchain-powered exchange, Alta is also able to support tokenization, digital custody, and trading of alternative assets.

Alta is headquartered in Singapore with global offices in Malaysia, Indonesia and India.

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