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

Hi Alta-natives! In this edition we'll take a deeper dive in the aftermath of Silicon Valley Bank’s fallout, how (and who) increased allocations to alternative investments in 2022, why Indonesia is increasing efforts to drive green investments.

The Aftermath: SVB, First Republic, Signature

• Silicon Valley Bank’s fallout is the second-largest bank failure in American financial history. The tech-centric lender experienced declines in deposits for three consecutive quarters, further exacerbated on March 9th when the bank declared a stock sale to shore up its liquidity position.
• With First Republic, Signature bank, technology and VC firms in the US were most affected of the contagion, others in the international VC scene remained relatively unscathed by the fallout (for now).

• The new 'full-service FDIC-operated ‘bridge-bank’” had its new CEO cite that operations were back to normal and urged customers to bring back deposits to ensure stability. However, this claim was short-lived, as the bank filed for chapter 11 bankruptcy while continuing to search for buyers.
• In relation to liquidity outflows, market volatility and?SVB's collapse, Credit Suisse was the next to fall. The bank had delayed its annual report and identified 'material weaknesses' and was saved by Swiss rival UBS in a US$3.25B acquisition brokered in part by the Swiss National Bank.?
• With news that AT1 bondholders would be suffering losses of US$17B, the deal was a commercial solution in preventing any additional collateral damage to the Swiss and global financial system.
• Given the swift action of the regulators and central banks, and the short-term rebound in bank stocks, it appears that a wider banking crisis might have been averted... for now.

In 2022, Allocators Tapped Into Alternatives With An Additional US$144B In Investments

• A new compendium commissioned by Vidrio Financial which surveyed over 1,000 individual mandates, spread across life-science and technology sectors, revealed that capital allocated to alternative investments increased to US$144B in 2022.
• More than half of the mandates were allocated to private equity and venture capital despite a slowdown in funding, while investors showed a breakthrough interest in infrastructure and real assets to mitigate inflation risks.
• While the data suggests significant market volatility and geopolitical risks, opportunities for investors to diversify their portfolios and potentially generate uncorrelated returns through these alternative investments still exist.

Indonesia Investment Authority (INA) Targets Fresh Funding Into Green Investments

• The Indonesian sovereign wealth fund has highlighted energy transition, an electric vehicle ecosystem and carbon capture as the three main areas of investment focus. The funding will come through various channels? including a partnership with the Asian Development Bank, a US$2B co-investment Green Fund, and other distinct investment frameworks
• The INA has made several strides towards green investing with its US$120M participation in state-owned Pertamina Geothermal Energy (PGE) which recently IPO-ed as well as by pledging US$500M with Danish funds towards a circular economy.?
• Investors can expect to see an increase in investment options related to sustainability as the INA continues to make strides towards green investing and the IPO market becomes a fire-starter to attract capital other than from the government.?

?? Exclusively on Alta

Bibit , Canva , Alodokter , Funding Societies , Qoala discover who’s trending with our investor network! Researched by experts, voted by insiders. View our Top Picks here !

?? Notable Fundraises

Foundation Healthcare | US$110M | Bridge | Health Technology

Foundation Healthcare Holdings is a ground-up, purpose-built, technology-enabled healthcare platform headquartered in Singapore with its sights set on the region. Their vision is to design, build and operate a healthcare platform that brings together all stakeholders in the healthcare ecosystem to deliver better value for the patients

Mintifi | US$110M | Series D | Financial Technology

Mintifi is a developer of an online supply chain financing platform designed to cater to the last-mile distribution network. The company’s platform uses a combination of technology and corporate distribution network and transforms the purchase financing experience across the distribution network up to the last mile by offering flexible and affordable financing options, enabling businesses to get access to funds in order to carry out their operations.

Green Li-ion | US$20.5M | Bridge | Clean Technology

Green Li-ion is a developer of a multi-cathode technology designed to rejuvenate lithium-ion batteries. The company’s patented deep technology removes inefficient processes and improves the purity of the output, making lithium-ion batteries restored to be reused, enabling businesses to use lithium-ion batteries for a long duration without losing efficiency.

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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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