Venture • Internet Software and Services

Sumitomo Equity Asia, Morgan Stanley Private Equity Asia and Eight Roads Invest In CDP Group

On October 20, 2006, corporate investor Sumitomo Equity Asia, private equity firm Morgan Stanley Private Equity Asia and private equity firm Eight Roads invested in internet software and services company CDP Group

Investment Context
  • This is Sumitomo Equity Asia’s 1st, Morgan Stanley Private Equity Asia’s 1st and Eight Roads’ 1st transaction in the Internet Software and Services sector.
  • This is Sumitomo Equity Asia’s 1st, Morgan Stanley Private Equity Asia’s 1st and Eight Roads’ 3rd transaction in China.

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Investment Summary

Date October 20, 2006
Target CDP Group
Sector Internet Software and Services
Investor(s) Sumitomo Equity Asia
Morgan Stanley Private Equity Asia
Eight Roads
Deal Type Venture

Target Company

CDP Group

Shanghai, China
CDP Group is an integrative platform that is transforming how organizations manage human capital. CDP cloud-native offerings provide customized and effective SaaS enabled solutions to over 3,600 enterprise customers and their employees, addressing their payroll and tax, health and insurance, benefits, and workforce management needs. CDP Group was founded in 2004 and is based in Shanghai, China.
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Investors Overview 3

Investor
DESCRIPTION

Sumitomo Corporation Equity Asia Limited (SCEA) is the Asian private equity arm of Japanese conglomerate Sumitomo. SCEA generally targets fast growing, small to mid-market companies from early to expansion stage. The Firm will also co-invest alongside other investors in larger buyout situations. SCEA will consider investing in high-tech sectors as well more traditional industries. Sectors of interest include wireless, semiconductors, internet services, IT, clean technology, manufacturing, automotive, distribution, logistics, and financial services. SCEA will not invest in privatization opportunities, biotech, capital intensive businesses, infrastructure, or real estate. SCEA was formed in 2002 and is based in Hong Kong.


Deal Context for Investor #
Overall 1 of 13
Sector: Internet Software and Services 1 of 1
Type: Venture 1 of 8
Country: China 1 of 7
Year: 2006 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-01 China Precision Technology

Singapore

China Precision is a China based integrated contract manufacturer of precision components for the consumer electronics, office automation, telecom and automotive industries.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-26 Fiberxon

Santa Clara, California, United States

Fiberxon Inc. is focused on the design, manufacturing, and marketing of best-in-class and cost-effective optoelectronic interface modules and solutions for communication systems and networks. Founded in 2000, Fiberxon has its headquarters in Santa Clara, California, and subsidiaries and offices in Tokyo, Beijing, Shanghai, Shenzhen and Chengdu and Macao. Supported by leading venture capital and world-class strategic partners, Fiberxon meets the demands of its customers worldwide with products and services derived from its innovation in technology, product development, and manufacturing processes, as well as its complete quality and reliability assurance systems.

Sell $131M
DESCRIPTION

Morgan Stanley Private Equity Asia is a direct investment affiliate of Morgan Stanley that looks to acquire minority investments in companies with substantial business operations throughout Asia. The Unit has a preference for fast-growing businesses with strong brands and sustainable competitive advantages. In addition to minority deals, the Firm will also consider select control situations. Morgan Stanley Private Equity Asia was formed in 1993 and is headquartered in Hong Kong.


Deal Context for Investor #
Overall 1 of 36
Sector: Internet Software and Services 1 of 2
Type: Venture 1 of 3
Country: China 1 of 19
Year: 2006 1 of 2
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-12-01 Asia Capital Reinsurance Group

Singapore, Singapore

Asia Capital Reinsurance Group is a non-life reinsurance group dedicated to serving clients in Asia. ACR focuses on large risk underwriting in specialist lines, including aviation, marine, energy, property, engineering, and casualty. ACR was founded in 2006 and is based in Singapore.

Buy -
Investor

Eight Roads

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1969
PE ASSETS 11.0B USD
Size Mega
Type Sector Focused
DESCRIPTION

Eight Roads is a private investment firm focused on a variety of investment opportunities across the US, Europe, and Asia. The Firm is divided into several investment strategies including venture, principal investing, and real estate. Within the principal investments group, Eight Roads backs established growth businesses with long-term capital. Eight Roads does not have any sector preferences, but has experience in fintech, business services, and healthcare. Eight Roads is based in London.


Deal Context for Investor #
Overall 5 of 293
Sector: Internet Software and Services 1 of 60
Type: Venture 3 of 266
Country: China 3 of 66
Year: 2006 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 Ikano Therapeutics

Montvale, New Jersey, United States

Ikano Therapeutics is a specialty pharmaceutical company focused on developing Midazolam Nasal Spray (USL261) for acute repetitive seizures. Ikano Therapeutics is based in Montvale, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-01-01 NextWave Pharmaceuticals

Cupertino, California, United States

NextWave Pharmaceuticals is a specialty pharmaceutical company developing extended release OTC and prescription products for children and adults. NextWave Pharmaceuticals was founded in 2005 and is based in Cupertino, California.

Buy -