Bee Alternatives Management Ltd. (“BAM”), the equity holding company of Bee Alternatives Limited (“BAL”)*, is pleased to announce that it has entered into a definitive agreement to acquire 100% of the shares in JAFCO Investment (Asia Pacific) Ltd. (“JAFCO Asia”) from JAFCO Group Co., Ltd. (“JAFCO”; such transaction, the “Acquisition”) as part of a strategic initiative to expand its platform and investment capabilities in Asia. Following completion of the Acquisition, BAM will directly or indirectly hold the shares of the General Partner and the Manager (each as defined in the limited partnership agreement; hereinafter the same) of the relevant funds.

JAFCO Asia is a venture capital firm that invests in high-growth, technology-related companies in their early to growth stages. Since its founding in the 1990s, JAFCO Asia has been a prominent player in the Asia Pacific region, with a focus on driving innovation and supporting entrepreneurs in the technology sector. Headquartered in Singapore, the firm also operates subsidiaries in Taiwan and China, providing robust regional coverage across Southeast Asia, Taiwan, China, and India.

This transaction marks a pivotal milestone in BAM’s long-term development strategy and is distinct from BAL’s secondary investment activities. By acquiring a well-established platform with a strong operational foundation, BAM aims to deepen its footprint in the region and create new avenues for value creation while complementing  BAL’s existing investment strategies. This Acquisition will not only enhance but also solidify the group’s ability to connect PE/VC ecosystem within the Asia region, fostering new opportunities for growth and collaboration.

While BAL continues to manage or advise funds focused on secondary investments globally, the Acquisition is a distinct initiative, designed and operated independently, with the aim of further diversifying the platform and expanding its footprint in the Asia Pacific private equity landscape.

The closing of the Acquisition is scheduled to take place within 2025, subject to regulatory approvals and the satisfaction of other closing conditions.

(*) As part of a group reorganization, BAL is expected to become a wholly owned subsidiary of BAM.

On 9th July 2024, Bee Alternatives was featured in MARR Online, a news portal that offers daily M&A related news and reports. The article can be found here.

https://www.marr.jp/menu/ma_strategy/ma_pefund/entry/52966

Our Founding Partner, Fumiki Otokuni, highlighted that according to Japan’s Financial Instruments and Exchange Act, investee funds must be registered as Specially Permitted Businesses for Qualified Institutional Investors (SPBQII) in Japan if the investor (e.g., a secondary fund like ours) is also a Japan-registered SPBQII.
It has always been challenging for us to proceed with attractive deals when both the seller and the investee fund were foreign. This difficulty has been a significant factor in our decision to restructure the GP/fund and spin off from Ant Capital Partners. Now, by becoming independent and relocating Bee Alternatives to Malaysia as a licensed fund manager, we are proud to say that we have broader opportunities from both Japanese and non-Japanese sellers.

In both Japan and Asia (ex-Japan), institutional investors such as corporate pension funds and financial institutions make up the majority of sellers.
"The government linked funds in Asia would also appreciate secondary solutions to recycle their capital in old committed funds into the new generation funds in their effort building up the private capital market." Yuliang Chen mentioned.

Similarly, Atsuhiko Inoguchi predicted that the demand for PE secondaries is expected to steadily increase.  "Some LPs have already reached their investment budget limits, making it increasingly challenging for them to invest in or re-commit to newly launched funds. This circumstance will likely prompt LPs to contemplate selling their existing investments to reallocate their investment budgets:" he added.

Bee Alternatives Limited ("BAL") is delighted to announce its recent investment in Bee 6 Target No.1 Investment Limited Partnership alongside Mizuho Securities Co. This investment was made through a fund managed by BAL.

Our commitment remains steadfast in fostering the growth of secondaries market, particularly in Japan and the rest of Asia, by offering liquidity solutions to Limited Partners (LPs) and General Partners (GPs) through solutions such as transfer of interests in private equity funds (LP-led secondaries) and investment in continuation funds (GP-led secondaries).

We look forward to contribute further to the advancement of the secondaries market and create more values to our partners and investors.
 

Bee Alternatives Limited (BAL), a distinguished member of the Malaysian Venture Capital & Private Equity Association (MVCA), had the honour of participating in the Malaysia Venture Forum 2023: Reflect, Assess and Charge Forward. The event drew over 200 attendees from Malaysia and the wider region, making it the flagship event of the year for MVCA.

On December 6, 2023, Yuliang Chen, Founding Partner of BAL and a committee member of MVCA, had the privilege of contributing as an esteemed panelist in a session addressing the "Rising Pressure of Exits: How SEA Navigates the Dynamics in the Current Market Environment." Joining him were industry representatives, including Aliff Omar from Ekuinas, Khairu Rejal from Investible, and Selvarany Rasiah from Kapital DX. The panel was skillfully moderated by Zhen Hui Low from Artem.

During the panel session, Yuliang shared valuable insights into various liquidity solutions within secondaries, with a focus on both GP-led and LP-led transactions. A key emphasis was placed on GP-led transactions, highlighting how GPs can retain trophy assets deemed untimely for divestment in the current market environment. This involves secondary investors providing selling LPs in the original fund to achieve liquidity, allowing GPs to manage assets in the continuation fund, add value, and maximize exit valuations. This mutually beneficial approach proved to be a winning formula for all stakeholders. Yuliang also underscored the critical importance of governance with strong alignment of interests with GPs when executing GP-led transactions and shared his positive perspective about the future secondary opportunities and exits in SEA.

BAL extends its sincere gratitude to SaiKit Ng, Chairman of MVCA, and the entire MVCA team for orchestrating a successful summit in Malaysia that attracted not only local professionals but also those from abroad. We trust that our participation and contribution will add weight to MVCA’s effort in propelling the industry to new heights.

On 9th November, we were invited to participate in the BDA Japan PE Conference 2023. The event was attended by the investment professionals in the private equity industry in Japan.

Our Founding Partner, Atsuhiko Inoguchi, was invited as one of the esteemed panelists for the GP-led Secondaries in Japan session. The session mainly delved into the evolving landscape of the secondaries market in Asia, with a specific focus on the Japanese market. Alongside with Bee Alternatives Limited, J-Star and AI Capital were also invited to participate in the discussion to offer a wholistic perspective from the buyer, seller, and managing GP standpoints in the completion of a secondaries transaction.

During the session, Atsuhiko shared his valuable insights about the challenges typically faced by a buyer in secondaries transactions. He emphasized on the importance of effectively managing the expectations of LPAC and ensuring a robust alignment with the managing GP before and after a secondaries transaction.

Overall, the panel of speakers collectively concurred on the significance of secondaries in the current economic climate, where M&A and IPO opportunities are scarce. Secondaries transactions emerged as a vital mechanism in providing liquidity to LPs, playing a pivotal role in recycling private capital in the PE landscape.

We would like to express our gratitude to BDA Partners for the opportunity to contribute our knowledge in the PE secondaries space and congratulate them for a successful event.

Bee Alternatives Limited (BAL) just had a heartwarming event recently. On October 21st, we had the immense pleasure of hosting the wonderful children from Rumah K.I.D.S for a day filled with laughter, connection, and unforgettable experiences.

Our day kicked off with a trip to an animated movie, where the children were treated to a cinematic adventure that had laughter lighting up the hall. The movie ended with a great moral, enriching not only the children but members of Bee Alternatives Ltd as well.

Following the movie, we gathered for a delicious lunch, creating a space for meaningful conversations and connections where our team members had the privilege of interacting with these bright and spirited individuals, fostering our sense of community and responsibility with the various components of this society.

The highlight of the day was undoubtedly the exhilarating laser tag game session! Laughter and excitement echoed through the arena as Bee Alternatives members joined hands with the children, discussing the shooting strategies, battling between the teams.

At BAL, we believe in giving back to the community we thrive in, and this joyful event was a testament to our motto. Witnessing the children’s simple joy and excitement was truly priceless!

A heartfelt thank you to Rumah K.I.D.S for providing a loving and healthy growing environment to the children which we could testify through the courteous disposition carried by each and every one of the children throughout the outing.

We recently participated in the Asia PE-VC Summit hosted by DealStreetAsia in Singapore, a two-day summit attended by hundreds of investment professionals from the region.

Our Founding Partner, Yuliang Chen, was invited to be one of the esteemed panelists, sharing profound insights on the topic of what is stopping GP-led secondaries in Asia. He shared the panel with representatives from HarbourVest Partners, TR Capital, and MUFG Investor Services.

Yuliang Chen highlighted some important trends observed within the Asian secondaries market. One of the crucial points he emphasized was the significance of stronger GP alignment in GP-led transactions. He stressed the importance of being discerning when choosing to collaborate with managers who express an intention to execute GP-led transactions. To enhance the sense of GP alignment, secondary investors are exploring various structured solutions and raising expectations regarding the GP's ability for value creation and emphasizing on portfolio exits within a visible timeline.

While secondaries have finally gained traction in Asia, serving as an essential tool for viable exit solutions in the region, we envision tremendous opportunities that Bee Alternatives can seize in supporting various secondary opportunities, whether they are GP-led or LP-led transactions.

We would like to take this opportunity to express our gratitude to DealStreetAsia for extending the invitation and to congratulate them on hosting another successful summit this year!

Bee Alternatives Limited (BAL), one of the members of Japan Private Equity Association (JPEA), had attended the 18th Annual Meeting on September 4, 2023.
Our Founding Partners, Fumiki Otokuni and Atsuhiko Inoguchi had attended the thought-provoking discussions and witnessed the appointment of the new chairman during the event.

The Scope of PE Governance: The first panel provided a deep dive into the critical components and best case practice of private equity governance. The discourse was rich with perspectives on navigating complexities in deal making vis-a-vis ensuring governance and transparency to regulators and LPs.

Promoting Women Professionals: Following closely, the second panel sparked meaningful conversations in fostering gender diversity in the industry. Insights were shared on breaking barriers, creating opportunities, and championing the role of women professionals in the private equity arena.

Mr. Ryosuke Iinuma's Appointment: A moment of significant anticipation unfolded during the event as Mr. Ryosuke Iinuma, who is also the representative Director and President of Ant Capital Partners, was announced as the new chairman during the Annual General Meeting. His wealth of experience and strategic acumen in private equity is poised to strengthen and enrich the narrative of the JPEA. Congratulations to the JPEA for orchestrating yet another successful AGM that illuminated the path forward for private equity and its member in Japan.