The activity in the ASEAN region continues to remain high as we approach the end of 2014. Fund raising coninues and deal activity has improved from a slow start during the year. However, valuations, given public equity markets and deal competition, remains on the higher end. The main question we are asked is whether the risk-return profile warrants additional commitment to the region and to specific markets within the ASEAN, i.e. Indonesia and Malaysia in particular. We are witnessing a drove of companies looking for growth capital, and some businesses looking for exits due to succession issues or for other such reasons. This indicates a healthy supply of new opportunities for PE investors. On the other hand, we are also working with corporates to mitigate policy risk as the voice of the private sector in select industries in select markets as the AEC 2015 initiatives are progressing. In addition, we are witnessing increased demand for consultative services for new entrants in these markets. In all, the recent activity indicates a healthy environment going into 2015.
US monetary policy is an unlikely threat for Emerging Markets
By Dr. V. Anantha Nageswaran
On October 29, the Federal Reserve announced that it had ended its asset purchase programme (Quantitative Easing or QE3). The communication issued by the Federal Reserve Open Market Committee suggested that the Federal Reserve was now more confident about the economic recovery in the United States and that it was looking ahead to make monetary policy more normal again with positive nominal interest rates. Based on this perception, many had begun to pen their stories of doom for emerging economies.
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VinaCapital comments from CIO Andy Ho
Over the years, we have seen our share of mistakes and successes. We’ve come to the conclusion that the most important facet of the process is the ability to handpick the private deals. This means really understanding management and what motivates them, and aligning our objectives with theirs to create win-win scenarios. And the most important part of choosing the deals is knowing who your partners are.
Our strategy now dictates that we spend the majority of our time sourcing and investigating investment opportunities prior to going public, which we define as having more than 100 shareholders or being listed on the HOSE.
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ASEAN PEVCA has been an active participant in many events in 2014 including:
SuperReturns Asia as chair and moderator of the SE Asia Summit: Key takeaways were local presence is necessary for success and that deal activity has picked up in the 2H 2014
Chair for the IQPC 9th Annual Private Equity Southeast Asia Summit: This included an interesting perspective on opportunities for not only PE investors, but as well as the broad opportunity set in the ASEAN region for the VC investor as well.
ABC (ASEAN Business Club) Forum 2014: More than 300 business leaders from the ASEAN region converged at this forum in early September to tackle trade and industry issues as well as support the implementation of the ASEAN Economic Community (AEC)
Speaker at The 5th Annual Malaysia Roundtable by Asia Asset Management on Institutional Investments and Pensions: Charting New Growth: Presented the case for Private Equity in Institutional allocations
Speaker at “Innovation in Asset Management” for BRN Paribas hosted event: For wealth managers, private equity is another way to enhance long-term returns for clients.
ASEAN On Line Connectivity launch and PPP summit with ADB: The ASEAN secretariat launched their new information management portal. In conjunction a seminar on Enhancing Connectivity through Public Private Partnerships was co-organized by IE Singapore and Export Development Canada with representatives from ADB.
Speaker at the Euromoney ASEAN Congress: Participated in a panel on the underlying need for capital market development in the ASEAN region, the importance of private equity in capital market development and interconnectivity of exchanges within the region.
In addition there have been webinars and roundtables over the last six months on a variety of topics, including industry/country-focused roundtables, cross border investments and capital raising for entrepreneurs as well as fund managers.
The year is not yet finished! We are lined up to participate in the following events in this month:
ASEAN Business & Investment Summit 2014 to be held on Nov 11-13th in Nay Pyi Taw, Myanmar organized by the ASEAN Business Advisory Council in conjunction with the ASEAN Summit.
FT ASEAN Economic Congress to be held in Singapore on Nov 12th in Singapore. We have a member speaking; so do make it over there if you are around. The link to the site is http://event.ft-live.com/ehome/ftasean/home/?&, members receive a 20% discount.
PEI Family Office & Private Investor Forum 2014 in Singapore on November 19th. A discount is available for ASEANPEVCA members. Please contact firstname.lastname@example.org for details.
ASEAN PEVCA offers opportunities to investors at all levels that are already investing or have an interest to be part of the ASEAN story. The association provides a host of services from connecting members to new business opportunities, to new investors, as well as educational, consulting and advisory for research and insights into the ASEAN markets. Membership forms are available at http://www.aseanpevca.org/#!membership-benefits The association is expanding its presence in its member countries and across sectors. If you would like to get involved, or even lead any of the verticals that are still open, contact us at email@example.comThe association provides service providers and other associated businesses a host of opportunities from branding, thought leadership as well as partnership opportunities in advisory, research and consulting assignments. To partner with the association, contact us at firstname.lastname@example.org