Deal of the Year – Large Cap (Equity commitment – $200 million and above)
51job (DCP Capital, Ocean Link, Recruit Holdings)
A consortium led by DCP Capital completed a take-private of US-listed Chinese online recruitment platform 51job in May 2022 at equity valuation of USD 4.2bn. The private equity firm submitted an initial bid in September 2020 and then brought in Ocean Link Capital, 51job CEO Rick Yan, and Japan’s Recruit Holdings, giving the consortium over 50% of the voting power. The transaction stayed on course, despite delays and pricing adjustments amid pandemic-related volatility. Post-acquisition initiatives include augmenting the management team with senior hires, establishing an effective long-term incentive arrangement for staff, expanding product offerings, and exploring M&A opportunities.
Crown Resorts (The Blackstone Group)
The Blackstone Group completed the acquisition of Australia-based resort and casino operator Crown Resorts at an enterprise valuation of AUD 11.3bn (USD 8.1bn) in June 2022, following a year-long pursuit. The company was beleaguered by COVID-19 lockdowns and scrutiny over money laundering allegations when Blackstone bought a 9.9% stake in 2020, taking advantage of a falling share price. Moving towards a full acquisition, the GP worked with different stakeholders to position itself as a credible solution to Crown’s governance shortcomings, as well as undergoing various licensing and regulatory reviews. Subsequently, it quickly brought in new leadership to drive a turnaround.
Envision Group (Primavera Capital Group)
Primavera Capital Group invested approximately USD 600m in Envision Group, the largest wind turbine manufacturer in China and the fourth largest globally, in October 2021. It made an additional commitment to Envision AESC, which produces next-generation batteries for global customers and is a supplier for the Nissan Leaf. Envision sits within China’s “new infrastructure” sweet spot. It promotes wind and solar power as “new coal,” batteries and hydrogen fuel as “new oil,” and its artificial-intelligence-of-things (AIoT) networks that coordinate the hardware as the “new grid.” Primavera’s investment came several weeks before GIC and Sequoia Capital China put in smaller sums.
Fractal Analytics (TPG Capital)
TPG Capital paid USD 360m for a significant minority stake in Fractal Analytics, an India and US-based data analytics provider, in March 2022. The transaction comprised primary and secondary shares, with Apax Partners making a partial exit. TPG initiated a bilateral dialogue with the founders over the course of six months, keeping its involvement confidential and persevering despite a COVID-19 wave in India. Adding to the strong secular tailwinds for data and analytics services globally, the GP identified value creation opportunities in digital engineering, building vertical expertise beyond consumer-retail, add-on acquisitions, and introducing greater diversity at board level.
Luckin Coffee (Centurium Capital)
Centurium Capital became the controlling shareholder in Luckin Coffee in January 2022, leading a consortium that paid USD 440m to purchase shares owned by certain former founders through a liquidation process. After the China-based coffee shop chain became embroiled in an extensive sales fraud not long after its US IPO, Centurium resolved to lead the remediation process, while simultaneously stabilizing and turning around the business. It has since installed new management, overseen a restructuring, and formulated a new business strategy. New stores continue to open, revenue is rising, and operating losses have narrowed, partly because of reduced sales and marketing spending.