Winston Ma - The Hunt for Unicorns

1 Cover

2 ForewordIt is Time to Build the Greatest of Time Machines

3 The Investment Partners of Choice

4 Into the Vanguard of the Digital Transformation

5 Authors' Notes and Acknowledgments

6 Acknowledgements

7 About the Authors

8 Preface Part I: The Trillion-Dollar Club Part II: In Pursuit of the Digital Revolution Part III: Global Expansion, Regulatory Responses, and International Policies Closing Chapter: Super Asset Owners

9 CHAPTER 1: Sovereign Investors Rising in Crisis Trillion-Dollar Club Follow the Money Big Spenders, ESG Promoters Rush into the Digital Revolution

10 CHAPTER 2: From Passive Allocators to Active Investors Behind-the-Scene Asset Owners Going Direct: Real Estate to Infrastructure Active Investors Taking Actions Rarity of Unicorns: In the Public Market New Milestone for Grown-up SIFs

11 CHAPTER 3: Global Hunt for Unicorns (Decacorns) Trillion Dollar Club – SIFs and Unicorns New Venture Capitalists at Silicon Valley China: Wild Wild East London, India, and Rising Innovation Hubs

12 CHAPTER 4: Long-term Capital into Digital Infrastructure Data to Information to Knowledge SIFs and Global Infrastructure Gap Network Infrastructure and Data Center Smart Global Logistics Smart Cities – Urban SDG

13 CHAPTER 5: Spurring Domestic Digital Transformation Quest for Additionality: from NPRF to ISIF Tech Hub in the Desert Innovative SWF Structures in Africa

14 CHAPTER 6: Go Early, Go Nimble The Year WeWork Failed to Work Temasek: Bumpy Road even for Established Players Becoming VC: Early, Nimble, and Portfolio Approach From Alpha to Omega

15 CHAPTER 7: The Hunt for the Hunting Party Nantucket Sleigh Ride AlpInvest “Captive” Asset Manager: A Sexier Employer? Stepping Out: Singaporean Funds and Canada Pensions JIC: Don't Try this at Home Seeding: West Summit and Vision Fund Diversify and Participate: Building up an Ecosystem After the Shard

16 CHAPTER 8: Overseas Expansion and National Security Collide White Knights, Damsels in Distress, not so Happily Ever after Not all National Security is the Same CFIUS Origin: Japan before China Energy Security, National Security Critical Infrastructure, Expanded Review Tightening the Digital Screw Changing Game for SIF/The CFIUS Review Process for SIFs has Changed

17 CHAPTER 9: Tech Transactions Snared by Geotech Tension Tech and Semiconductor Chips From Hard Tech to Invisible Data Europe: Germany, UK, France Israel, Japan: Hard to Balance the Technology Triangle China–US: Severed Cross-Border Ties Rethinking Going Direct on Tech Investments

18 CHAPTER 10: Super Asset Owners Powerful ESG Guardians Super Fintech Institutions Fractured Tech Future MAD to MAP: Peaceful Diplomacy Conclusion

19 Appendix: Table of Abbreviations

20 Bibliography

21 Index

22 End User License Agreement

1 Chapter 1 Table 1.1 Top Ten Sovereign Wealth Funds Table 1.2 Top Ten Public Pension Funds Table 1.3 Representative Volume of PPF/SWF Co-investments

2 Chapter 2 Table 2.1 GSIA Overview Table 2.2 SWF–SWF Co-investments as of 2018 Table 2.3 NPS Voting Results 2016–2018 Table 2.4 NPS Before vs. After the Adoption of Stewardship Principles

3 Chapter 3Table 3.1 Representative Sampling of US Offices of Sovereign InvestorsTable 3.2 Top Five Sectors for SWF Investments (2018–2019)Table 3.3 Singapore's Direct Deals in Tech 2015–2016 (Sample)Table 3.4 Representative Vision Fund US Investments.

4 Chapter 4Table 4.1 GIC's Global Portfolio of Data Centers

5 Chapter 7Table 7.1 The London Offices of Sovereign Investment FundsTable 7.2 Temasek's Worldwide Offices before 2010Table 7.3 Temasek's New Offices During the Tech BoomTable 7.4 Temasek Representative Tech Investments in Major Markets

6 Chapter 8Table 8.1 SIF White Knights for Wall StreetTable 8.2 Seven Transactions Blocked by US Presidential ActionsTable 8.3 Legislative History of CFIUSTable 8.4 Foreign Investment Transactions Reviewed by CFIUS, 2009–2017

7 Chapter 10Table 10.1 RDIF/Mubadala Cooperation Agreements

1 Chapter 1 Figure 1.1 SIFs to the Rescue of Citibank Figure 1.2 NSIA Divided into three Ring-fenced Sub-Funds Figure 1.3 Temasek Identified Six Structural Trends Figure 1.4 One Planet SWF Working Group Figure 1.5 SIFs Lead $100 billion Vision Fund Figure 1.6 The TID Focus of CFIUS Figure 1.7 New US SIFs for 5G

2 Chapter 2 Figure 2.1 Typical FOF Investment Structure Figure 2.2 Conventional LP Investing into Fund Figure 2.3 LP Co-investing with Fund GP Figure 2.4 Direct Investing (Traditional LP Becoming the GP Itself) Figure 2.5 Joint Investment by SIF and PE/VC FundFigure 2.6 Direct Listing – No Underwriters or New Share IssuanceFigure 2.7 The Entry of Non-Conventional Venture InvestorsFigure 2.8 Three Main Objectives of SIFs' Tech InvestingFigure 2.9 Issues with VC Fund InvestmentsFigure 2.10 SIFs Needs to Reorganize ThemselvesFigure 2.11 Mixed Results from “Passive” Active Investors

3 Chapter 3Figure 3.1 Three Layers of SIF/Unicorn EngagementsFigure 3.2 SIF-backed Vir Searching COVID-19 SolutionFigure 3.3 Moon Shooting for Fusion PowerFigure 3.4 Middle East SIFs Taking UberFigure 3.5 $100 Billion Vision FundFigure 3.6 Mobility theme across SIFsFigure 3.7 Alibaba's Ownership at IPOFigure 3.8 JD.com's Ownership at IPOFigure 3.9 Temasek and Mubadala into SenseTimeFigure 3.10 ADIA and RDIF into MegviiFigure 3.11 Global Sovereign Funds into World's Largest Unicorn

4 Chapter 4Figure 4.1 Growth in Global Internet Protocol (GIP) TrafficFigure 4.2 Digital Data EmpowermentFigure 4.3 The Inception of the Blue Dot NetworkFigure 4.4 NIIF Master Fund StructureFigure 4.5 Australian SIFs into Canberra Data CentersFigure 4.6 GIC into Data Center FLAP MarketsFigure 4.7 Smart Logistics behind Singles' DayFigure 4.8 Long-term Investments into Indian Logistics UnicornFigure 4.9 Three Prongs of BRIFigure 4.10 City of Fullerton – first Fiber City

5 Chapter 5Figure 5.1 Oman/Spain Cross-border Technology TransferFigure 5.2 The Evolution of ISIFFigure 5.3 “Additionality” Economic Concept by ISIFFigure 5.4 ISIF Biotechnology Investment Attracted Co-investorsFigure 5.5 China–Ireland Fund – JV at LP and GPFigure 5.6 NSIA Divided into Three Ring-fenced Sub-FundsFigure 5.7 Nigeria/Morocco–African SIF PartnershipFigure 5.8 SWF Innovation to Lower “Africa Risk”Figure 5.9 African SWFs Largely Funded by Commodity ExportsFigure 5.10 FSI/SEC – China/Italy Tech Transfer TransactionFigure 5.11 RDIF–CIC's New Focus on TechFigure 5.12 Morocco Leveraging Middle East Capital

6 Chapter 6Figure 6.1 The Rise and Fall of WeWorkFigure 6.2 Compounded Investments into Uber by PIF and Vision FundFigure 6.3 Temasek Led the June 2016 Financing Round of NIOFigure 6.4 Temasek Led the February 2017 Financing Round of MobikeFigure 6.5 The Life (Financing) Cycle of a UnicornFigure 6.6 GAAP Accounting vs. Founders' AccountingFigure 6.7 Early Investors more aligned with the Startup Founders than Late ...Figure 6.8 Apple's iPhone Product and related VC InvestmentsFigure 6.9 SIFs Increase Early Stage InvestmentsFigure 6.10 OMERS Venture as GPFigure 6.11 OSI Structured as Evergreen Corporation (Shareholders)

7 Chapter 7Figure 7.1 Unique Strategy – AlpInvest/PGGM/APG StructureFigure 7.2 AlpInvest/Carlyle Take-Private StructureFigure 7.3 Oxford Properties Structure before Taken-privateFigure 7.4 Overseas Office IntegrationFigure 7.5 OMER Ventures: Mix of Development and SeedingFigure 7.6 Ambitious Mission of First JIC FundFigure 7.7 CIC Co-invested with its Seeded-Platform West Summit in Unity...Figure 7.8 Temasek forms JV Platform for Supply Chain and Logistics IndustryFigure 7.9 Vision Fund Team in Global LocationsFigure 7.10 Capital Constellation – JV to Fund Emerging ManagersFigure 7.11 SIF Ecosystem of Learning: Diversify and ParticipateFigure 7.12 CIC Expands its Ecosystem in Fintech