Newsletters & Updates
Press Release Dec 14, 2015
The ASEAN Private Equity Venture Capital Association (ASEANPEVCA) today held a successful debate, the first in a series, in Singapore at the DBS Auditorium. This event was attended by a packed room of industry participants, including institutional investors, fund managers, family offices and high net worth investors.
The debate entitled "Will investors in ASEAN experience better returns in private equity vs public equity over the next decade?" addressed a number of interesting topics
So far this has been quite an eventful year. While we keep hearing about issues of valuations, Indonesian politics (haze notwithstanding!), and other such market issues, activity at the association is at an all time high. This includes new LPs looking for information on managers in the region, to new fund raises by existing as well as a handful of new GPs, new markets opening up to PE in the region, to strategic partnerships being sought for ASEAN companies from outside the region, and tremendous amount of deal flow from entrepreneurs/corporates looking for financial/strategic investors.
Deal activity both from financial as well as strategic investors has picked up substantially this year, especially in the mid sized deal space. We have seen strength in Singapore, Malaysia and Indonesia, followed by Vietnam and Thailand. The sectors that have been in favor have been education, healthcare, consumer, services and a smattering across a variety of other sectors. US VCs have also picked up activity in the region and are spending more time and money on our shores of late, especially in the tech and fintech space.
Dr V Anantha Nageswaran
Investors need to be prepared for the possibility that from 2015 onwards, global growth disappoints and asset markets (particularly stock markets) become increasingly volatile as a prelude to commencing their long overdue decline. In other words, central banks fail spectacularly.
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.