Ryan Poon, CFA, CAIA

I had an interesting chat with Yuke Xie from the South China Morning Post SCMP recently on the evolving investment strategies of Middle Eastern institutions and family offices.    Traditionally centered on the US and Europe, these investors and institutions are now turning their attention to the dynamic economies of #SoutheastAsia.    Looking forward, I foresee Southeast Asia maturing significantly as an investment hub, driven by its vibrant entrepreneurial ecosystem and fast-growing middle class. I believe Southeast Asia could well become a third pillar of international diversification for Middle Eastern investment, and #healthcare could potentially be a focal point.    Exciting times lie ahead for our SEA team of investment professional & operators, and we are currently raising a Southeast Asia-focused healthcare growth capital fund to capitalize on this growth.   Read more about it in the following link:

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#KKR When KKR & Co. offered almost $4 billion for a Japanese IT consulting company back in August, the proposal generated buzz in the country’s burgeoning buyout market. What came next was unprecedented. Bain Capital made a public rival bid for Fuji Soft Inc. that was 7% higher, a move that one dealmaker likened to a last-minute extra inning in baseball. It set off a rare open tussle between the private equity giants that has shocked investors. https://lnkd.in/dwjF-7fW

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It's been quiet for a while and now back to the field again. After 6 months of strategy brainstorming, we collaborated with several regional Private Equity and Venture Capitals. We are mandated to identify 100 potential regional MSMEs and MSMIs to participate in the new launch pool of the Incubation Fund, the first batch of which has been kicked off at USD500 million. If you are currently in the fundraising mode to drive the business and have the intention to route an IPO in any listing destination, we have an alternative fundraising mode to connect you to the relevant platform. It shortens your fundraising tenure with effective and efficient time resources. Welcome to drop the Business Proposal privately and we shall deal with you within the next 24 hours. The preliminary terms and conditions will be as follows; 1) Latest audited annual revenue > USD5 million; 2) Latest audited profit before taxation > USD1 million; 3) Agree to position the IPO as an exit strategy; 4) Preferably with technology-backed organization; Looking forward to your participation. Cheer.

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#China_Merchants_Capital #KKR China Merchants Capital and private equity funds including KKR & Co. are among firms considering bids for pallet maker Loscam Asia Pacific Co., according to people familiar with the matter. The investment arm of China Merchants Group and KKR have each been evaluating the business ahead of potential non-binding offers that could come as soon as Friday, the people said, asking not to be identified because the matter is private. A sale of Loscam, whose owners include China Merchants Group, Trustar Capital and FountainVest Partners, could fetch $2 billion to $2.5 billion, the people said. Loscam’s assets have also drawn preliminary interest from other alternative asset managers including Blackstone Inc. and EQT AB, the people said. While the owners are looking to divest the entire company, which operates in Australia, New Zealand, Greater China and Southeast Asia, some suitors may consider a bid for specific geographies, according to the people. https://lnkd.in/dudga7xT

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Enjoyed participating in a discussion on mobilizing investment to deliver a net-zero economy at the #JapanEnergySummit. The biggest barrier constricting VC capital flow is the potential for"death-by-pilot" where start-ups fail to secure the necessary funding required to support multiple iteration and scale-up phases often with moving goalposts from customers and partners. Contrary to popular belief, it is often commercial inertia that extends these timelines, not fundamental technology issues. While commercial partners need to manage risk, start-ups need to find partners where the highest levels of management see the vision for future alignment and are not just tinkering. And start-ups need to be able to give confidence to investors by striking early commercial deals with these partners that are subject to performance milestones and show real skin in the game.

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Japan’s oldest VC firm Jafco Group Co. is expecting a 200% return for its SV7 fund as several portfolio startups have expanded operations in foreign nations. The firm expects the fund’s value to cross the paid-in capital by 2.5 times. The early-stage VC firm also plans to launch a new $640M fund next year. Portfolio startup Astroscale Holdings is expected to cement its unicorn status and cross the $1B valuation mark soon. Jafco has backed 4,100 startups to date and has about $2.9B (466B yen) worth of assets under management. By Oct. 2023, Japan had only seven unicorn startups, per the Japan Venture Capital Association. Japanese Prime Minister Fumio Kishida has introduced several reforms with the aim to create about 100 unicorn startups by 2027.

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Thanks to DealStreetAsia for letting us contribute to this interesting topical piece... #DPI is indeed an issue that needs to be addressed but it is also important to find solutions and tools which can provide positive outcomes for all stakeholders, something that is central to Collyer Capital's strategy! #CCPL #CollyerCapital #DPI #Secondaries #Liquidity

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PE & AI: "Responsible AI in Private Equity" Some interesting insights by Dr. Michelle Seng Ah Lee as AI is becoming increasingly important for PE firms and their portfolio companies. Role of AI in Private Equity: a) In-house use: can enhance due diligence, firm efficiencies, regulatory compliance, and decision-making for deal teams b) Portfolio companies: can be a cornerstone of value creation Takeaways: - PE firms can help their portfolio companies by providing clear guidelines on how to use AI responsibly - Responsible AI means using AI in a way that is fair, transparent, and minimizes risks - PE firms should have a Responsible AI policy that outlines how they will use AI and how their portfolio companies should use AI - Responsible AI guidelines for portfolio companies should provide best practices and case studies Source: https://lnkd.in/eJ4y-dSg, Dr. Michelle Seng Ah Lee #pe #privateequity #ai

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Congratulations to Sean (Xiang) Ren, Tyler Z. and Sahara AI team for a successful Series A fundraising. SCB 10X is excited to participate in this strategic funding round, co-led by Pantera Capital and Polychain Capital, along with Samsung Next, Matrix Partners, Nomad Capital, Tangent Ventures and others. Founded in 2023, Sahara AI is developing a decentralized AI platform that offers high performance, provenance, data privacy and security. The network allows both individuals and businesses to deploy proprietary data and build personalized AI models. Additionally, it leverages blockchain technology to enable incentive distribution to data and model contributors, creating a collaborative ecosystem for AI development. SCB 10X is looking forward to working with Sahara AI team for a future of open and inclusive AI. https://lnkd.in/g5jqCm7p #artificialintelligence #generativeai #ai #startups #vc

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We've supported the AVCJ Private Equity Forum for the last 10 years, consistently the leading conference for PE in Asia Pacific. With an impressive gathering of experienced GPs and LPs, this represents a great opportunity to better understand the latest industry developments. Please join me for the panel discussion on Value Creation that I'm moderating on Thursday, Nov 21. #privateequity#valuecreation#Alvarez&Marsal#operations

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As a delegate, the measure of a successful conference is in the side meetings. 💼 🌍✨ Not in high-level discussions on stage, not in symbolic gestures from politicians, and not in the amount of media attention. Side meetings are a leading indicator of the real action that will take place after the event. In the 10 years that I have been attending #Ecosperity, this year was the most impressive. 🌟 Together with 🇺🇸 Frank T. Troise 🇸🇬🇨🇭, our side meetings were prodigious - 🌍 We explored financing plans with emerging climate fund managers. 🌱We discovered new climate-tech and carbon projects.  💡We developed action plans to crowd in finance from channels in our own home country 🇺🇸 . 💪We met old friends from Hong Kong, London, Geneva, and Seoul, and made new ones from Australia, Paraguay, Malaysia, and India. Now the real work begins! Let's go! #singapore #sustainablefinance #netzero #climaterisk #Temasek #Philanthropy Asia Alliance #The Liveability Challenge #ClimateAction #GenZeroSummit2024 #GenZero

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This is one of the more significant recent growth equity investments in Japan as mega global private markets asset manager KKR and leading Canadian pension fund manager Ontario Teachers'​ Pension Plan's Teachers Ventures Growth entity lead the $140 million Series E funding for SmartHR, Inc., a Japanese cloud-based human resources and labor management software startup. This round comes three years after the company raised a $142.5 million (15.6 billion JPY) Series D at a valuation of $1.6 billion. SmartHR, Inc.'s earlier investors include Light Street Capital,Sequoia Capital Global Equities, and Whale Rock Capital Management LLC. What is particularly significant and interesting is the activity and role of fund managers traditionally focused on leveraged buyouts in Japan now playing into the growth equity market segment which has generally faced a dearth of capital in the Japanese market. One of the key challenges for start-ups in Japan is that while there is significant early stage capital as well as an overabundance of corporate venture capital, the growth equity segment is limited and therefore companies often go public too early with limited revenue traction, the need to slow growth to demonstrate profitability on public markets, and the lack of institutional public growth capital to support the companies post-IPO as they are often driven by retail investors - the growth segment of the Tokyo Stock Exchange is over 60% retail investor-driven. Many start-ups prematurely list the companies at median ~$100 million valuations that often trade down with limited volume and the ability for investors to meaningfully exit. There is no doubt an opportunity for fund managers, both locally and globally, to invest in the growth private markets segment in Japan and prepare companies more suitably for institutional public market investors. Besides KKR in the SmartHR, Inc. case, other traditional international buyouts firms are now seriously evaluating the minority private markets growth equity segment in Japan, based on my conversations with various private equity firms. Further, the traditional "crossover" public-private market investors are starting to assess the Japanese market opportunity and I can see them entering over the course of the next 18 months. That being said, many of those "crossover" investors have been hammered by euphoric investments during the great bull-market of the past 5 years. Either way, the private markets growth equity opportunity in Japan is necessary and attractive, and I see established and new fund managers investing and raising capital for this part of the market. #japanesemarket #alternativeassets #privatemarkets #growthequity #privateequity #venturecapital #series3 #japan #pensionfunds #fundmanagers #kkr #asiapacific #capitalmarkets #institutionalinvestors https://lnkd.in/drFrBPAr

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【Temasek’s Bold $10 Billion Investment in India 🇮🇳】 -- A Strategic Move Amid China Slowdown In a move that underscores India’s growing significance on the global investment landscape, Singapore’s sovereign wealth fund, Temasek Holdings, has announced plans to invest $10 billion in India over the next three years. 🇨🇳 This ambitious investment comes at a time when the performance of #Chinese markets has been lackluster, underscoring #India’s importance as one of Temasek’s top two preferred markets globally, alongside the #US. 🇸🇬 Looking at Temasek's #trackrecord, it's impressive to note that they have already deployed around $37 billion in India over the past two decades.. 💡As of 2023, India now makes up 7% of Temasek’s global portfolio by underlying assets, up from 4% in 2020. In 2023 alone, they invested a record $3 billion in the country. What stands out to me is their perspective on India's market dynamics: "India has always commanded a premium due to its growth potential. By identifying and investing in the right businesses, consistently achieved returns that justify the higher valuations" "The capital markets and deal sizes in India have been steadily increasing, thanks to the expanding and maturing financial markets. The current high valuations are justified by the potential for above-average returns," Temasek’s #InvestmentStrategy in India will focus on several key areas, including technology, financial services, healthcare, and consumer goods. 🌡️ For instance, Temasek’s portfolio, Sheares Healthcare Group, healthcare investor, recently invested almost $2 billion in Manipal Health Enterprises Pvt. Ltd, Indian leading muli speciality hospital operator, with total stake of 59% (new 41%) at $4.9 billion valuation. This valuation is justified by Manipal’s strong financial performance, including 1) a revenue of around $488 million, 2) an EBITDA margin of 24% for FY 2023, 3) several millions patient as sticky customers and 4) potential for free cash flow generation. Later, they sold 8% stake to Abu Dhabi sovereign wealth fund, Mubadala while holding majority shares. Very successful story and foreseen investment. I reckon their increasing investment in India reaffirms the country's status as a pivotal destination for global investors. As someone keenly observing these developments, it's clear that India's market offers tremendous opportunities, and Temasek’s commitment only strengthens this outlook. Ravi Lambah Alex Lin #startup #Singapore #Investment

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Tracking Fund Performance in Vietnam For the first time in Vietnam, FiinPro-X is unveiling a groundbreaking feature that transforms investment tracking with advanced data analytics; empowering investors to seamlessly monitor the performance of nearly 100 investment funds, including open-end funds, closed-end funds, and ETFs, all within a single platform. By integrating daily-updated data with FiinPro-X’s data-driven, intuitive analysis tools, users gain access to a comprehensive, one-stop solution for research, comparison, and decision-making. Key features of this innovative update include: * Real-Time Data: Daily updates ensure that users have access to the most current fund performance data, allowing for timely and informed investment decisions. * Advanced Performance Metrics: In-depth metrics such as returns, alpha, beta, Sharpe ratio, and standard deviation provide detailed insights into each fund's performance and risk profile. * Benchmark Comparisons: Users can compare fund performance against relevant benchmarks and indices to evaluate relative performance and make strategic adjustments. * Customizable Dashboards: Tailor dashboards to track specific funds, set alerts for performance changes, and visualize trends with interactive charts and graphs. * Comprehensive Reports: Access detailed fund reports, including fact sheets and research analyses, to gain a deeper understanding of fund strategies and market conditions. * Portfolio Management Tools: Track and manage investment portfolios with features that facilitate risk assessment, performance analysis, and asset allocation reviews. In announcing this feature, Ms. Truong Trang, Managing Director of Financial Information at FiinGroup, remarked, "We are thrilled to introduce this innovative functionality on FiinPro-X, which represents a significant leap forward in investment tracking. Our goal is to provide investors with a powerful, data-driven tool that enhances their ability to make informed decisions and navigate the complexities of the financial markets with confidence. This new feature underscores our commitment to illuminating the market with cutting-edge solutions and setting a new standard in investment research and analysis." This advancement underscores FiinGroup’s dedication to enlightening the investment market with state-of-the-art, data-driven solutions. The newest feature of FiinPro-X not only enhances how investors access and analyze fund performance but also serves as a crucial indicator in the evolving investment landscape, paving the way for more informed and strategic investment decisions. Link to find out more: www.fiinx.vn Truong Trang Thuan Nguyen Quang Tuyet (Anne) Nguyen Trang Le; Fiin Group FiinPro® Platform FiinTrade Platform

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Thank you Nikkei, for featuring Q Investment Partners and our CEO & Co-founder, Peter Young! The APAC region is experiencing a surge in private asset investments as funds target attractive returns and strong market growth. Real Estate in particular, is gaining traction with Singaporeans, with UK student housing emerging as a key focus area.   Peter highlighted the robust investor appetite for UK PBSA, which forms a central part of QIP’s global portfolio, offering predictable income streams and resilience against market volatility. This makes it a preferred choice for investors seeking stability, lower risk and portfolio diversification.   “There are demand-supply constraints in the market, typically three to five occupants per available room. Student residences consistently operate at full capacity, and rental prices increase annually, making it an appealing investment, particularly for short-term investors,” he noted. Read the full article here (subscription may be required): https://lnkd.in/gXrrpt29 #QIP #UK #pbsa #realestate #privateequity #livingsector #alternativeinvestments

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