1. Asia Secondaries Direct Opportunities
EMPEA Private Equity in Emerging Markets Summit
27th October 2015
Harjit Bhatia
Executive Chairman & Founding Partner
Strictly Confidential

2. Secondary Direct Opportunities Drivers
Market Dislocations:
Due to market dislocation and muted IPO markets unrealized private equity exits in Asia remain at record high levels
Unrealized value in Asia Pacific grew 30% annually from 2009 to 2013 reaching a high of US$ 242 bn
In 2014, growth in unrealized value slowed but was still high at US$ 244 bn
Fund Life Constraints:
Significant portion of this unrealized capital relates to “boom period” investments of the vintage (~23% for buyout funds alone; figure higher for growth equity funds)
Many such investments are in funds that are in “end of life” phase. However, underlying companies need few more years to fully realize valuation potential and provide exit
Opportunity to unlock value by buying portfolios at “corrected” NAV levels and careful post purchase portfolio management
Source: Bain Asia-Pacific Private Equity Report 2015, APER.

3. Secondary Direct Opportunities Drivers (cont’d)
Shift in main sponsors/ corporate strategy
Volker Rule Effect
GP/ LP’s change of geographical focus
Team Departures
Inability to raise next fund
No visible carry possibilities
Key person departures, leading to orphan funds
GP/ LP conflict of interests

4. Our Strategy Focus on working closely with Main Sponsors/ GPs
Customized structured liquidity solutions
Exclusive, targeted timeline based approach
Disciplined Portfolio Underwriting
Each portfolio Company separately underwritten
No cherry-picking
Overall portfolio purchase structure customized taking into account Seller’s liquidity needs as also new LPs return requirements
Post Purchase Rigorous Portfolio Management
Get on Board of the companies; hands-on direct Private Equity approach
Make operational and business changes, as required
Work pro-actively with portfolio companies management to create value and “win-win” outcome
Prepare portfolio companies for strategic sale/ IPO exits in 18 – 24 months’ time frame
Typically, don’t buy passive LP Fund positions
Target IRRs: Mid twenties plus

5. AGCA Profile
Asia Growth Capital Advisors ("AGCA") is a Pan-Asia private equity firm based in Singapore ( specializing in offering customized structured liquidity and portfolio management solutions to LPs/ financial institutions seeking exits from their private equity investments due to strategic policy shifts or fund term limitations. AGCA also offers portfolio underwriting, monitoring and investment advisory services for optimizing value from both seasoned portfolios, as also for making fresh new investments in growth sectors across Asia. AGCA can run separate pledged pool of capital for large pension funds and institutional investors, customized to their needs and focus.
AGCA and its affiliates have experienced teams and presence in Seoul, Hong Kong, Shanghai, Mumbai and Singapore, working on a select number of portfolio management and advisory mandates for reputed global institutions and investors like Unity Fund I, PineBridge Investments, Canadian Pension and Investment Board, HarbourVest LLC and Axiom Asia
AGCA was founded in August 2010 by Harjit Bhatia and Soma Ghosal, formerly Chairman and Managing Partner and Partner respectively at Credit Suisse Private Equity Asia Partners, LP. The AGCA team collectively has over 80 years of investing experience in the region. The firm is registered and licensed by the Monetary Authority of Singapore and current AUM exceeds USD 550 mn