It was early February 2017, and Pope Francis was challenging the people gathered in front of him to change the structure of an economic system that had so far produced only worsening inequalities and environmental damage.
His audience was certainly in a position to do so: A room full of leaders in business, professions, and academia, as well as young people and wealthy individuals from across the world, Catholics and non-Catholics alike. We listened as Pope Francis called out the “hypocrisy” that few wanted to acknowledge.
“Aircraft pollute the atmosphere, but, with a small part of the cost of the ticket, they will plant trees to compensate for part of the damage created. Gambling companies finance campaigns to care for the pathological gamblers that they create. And the day that the weapons industry finances hospitals to care for the children mutilated by their bombs, the system will have reached its pinnacle. This is hypocrisy!”
Pope Francis also urged all to go beyond simple philanthropy and aid: “An entrepreneur who is only a Good Samaritan does half of his duty: he takes care of today’s victims, but does not curtail those of tomorrow.”
In his frequent engagements with people in charge of capital and governance globally, Pope Francis has consistently advocated for peace, inclusiveness, and sustainability along with the pursuit of growth and advancement.
From private meetings with corporate leaders and entrepreneurs, to addressing the World Economic Forum and the UN General Assembly, the last 12 years of the papacy have been an uncompromising defence of what is core to human life and dignity.
This week, Pope Francis, the head of the Catholic Church and the universal leader of our time, is laid to rest. It is up to those who encountered him, myself included, to put his advice to work in these continuing turbulent times.
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Planning, investment setback?
Global stocks rebounded this week, amid indications of de-escalating tension and hopes for trade deals. However, the upheavals over the last three months have caused deeper issues for the global business and investment community that might be harder to shake.
Amid the uncertainty, some of the biggest players in corporate America told their investors during earnings calls that they were scrapping their full-year outlooks. Many executives, including Goldman Sachs’ David Solomon and Citadel’s Ken Griffin, have warned that the Trump administration’s actions are affecting planning, spending and investment, with longer-term implications on growth and the economy.
Bright spots are emerging, though. For one, managers are seeing increasing interest from Asia-based investors, although they would still be seeking out established managers or assets with more stability in order to hedge against the overall volatility.
As Chinese investors are reportedly pulling back from investing in the US, one of Asia’s most established financial institutions, Sun Hung Kai & Co, told DealStreetAsia about the potential that China is now presenting.
Still, it could take some time for investors to settle, as DealStreetAsia data shows that startups in Greater China struggled significantly with fundraising in the first quarter of this year.
Separately, Chinese solar companies, who had earlier shifted production across Southeast Asia, have more recently pivoted towards US operations in anticipation of tariffs.
In the Philippines, the highly anticipated initial public offering of Philippine fintech giant GCash will still happen despite market volatility, executives at its parent Globe said in an earnings call this week.
It might help that digital lender Maya Bank, the largest in the Philippines by deposit base, reported its first profitable quarter this week. The company is backed by telecommunications company PLDT, as well as Tencent, KKR, and IFC.
In Vietnam, Masan Group plans to list its Masan Consumer unit in Ho Chi Minh by the third quarter of this year, though with the tariff war in mind. The company dropped plans for an international listing of its Crown X unit, Vietnam’s biggest retail company.
Other top developments this week
In Malaysia, Bee Alternatives is acquiring a 100% stake in Singapore-based venture capital firm JAFCO Investment (Asia Pacific) Ltd for an undisclosed amount. It marks Bee’s foray into the VC space, and a transition from a pure-play secondary investor to a broader investment platform with both primary and secondary capabilities.
Private equity firm Creador has acquired a 13% stake in Vietnam-based pharmacy chain Long Chau in the latter’s first institutional round. Long Chau is a subsidiary of FPT Retail (FRT), which controlled a 75% interest in the pharmacy chain before the transaction.
Chinese satellite navigation service provider Qianxun Spatial Intelligence (Qianxun SI) has secured new investment to bring its total fundraising in the Series B round to over 1 billion yuan (about $136.8 million). Qianxun SI was founded in August 2015 as a 50-50 joint venture (JV) between China’s Norinco Group and technology giant Alibaba Group.
Electra, a US-based clean iron company Electra has raised a $186-million Series B funding round co-led by Capricorn Investment Group and Temasek Holdings. Other investors in the round include Breakthrough Energy Ventures, Builders Vision, Collaborative Fund, and Earth Venture Capital.
Harvard University’s endowment is reportedly in talks to sell private equity fund interests totaling about $1 billion. The sale process started last year and is said to be unrelated to threats of funding cuts from the US administration.
Fundraising trail
Peak XV Partners, the venture capital firm spun out of Sequoia Capital two years ago, is set to raise its first independent fund with a target corpus of $1.2-1.4 billion to back early-stage investments across India and Southeast Asia. It will be the team’s ninth fund since launching operations in 2006, and about half the size of its last vehicle.
Singapore-based Azalea Investment Management‘s third buyout-focused private equity fund has reached the first close at $262 million. This comes more than three years after Azalea closed its second Altrium fund at $805 million. The firm said it secured anchor commitments from institutional investors and received strong support from high-net-worth individuals.
Tokyo-headquartered Incubate Fund is set to raise its fourth India-focused fund with a target corpus of $50-75 million by the end of this year. It backs pre-seed and seed-stage startups in India across sectors such as fintech, SaaS, mobility, and consumer tech.
Abu Dhabi’s Mubadala Investment Company is co-investing with New York-based Fortress Investment Group in its private credit, asset-based lending, and real estate strategies. The $1-billion strategic partnership follows the acquisition of a 68% stake in Fortress last year by a consortium led by Mubadala Investment Company subsidiary Mubadala Capital.
Deeper reads
Is there a deal in the works between TikTok and Traveloka?
Indonesia-listed e-commerce unicorn Bukalapak, which has been consolidating its operations in a pivot away from non-core, loss-making businesses, has invested about $39 million in key subsidiaries. These include units in the Mitra Bukalapak, supply chain, and digital ecosystem operations.
In Vietnam, EV company Vinfast is grappling with staggering losses amid high costs of entering new markets, as its latest results show. How will it continue with its global ambitions?
In India, a saga has been unfolding at EV ride-hailing startup BluSmart. Stay with us as our colleagues dive into the developments, including the resignation of its recently-appointed CEO.
Across Southeast Asia and India, private equity is rewriting the playbook at international schools, which have emerged as attractive assets in fast urbanising cities.
