Private equity deals rebound in ASEAN

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Carlyle Group is one the big global investment firms stepping up its ASEAN presence

Global private equity majors are showing rising interest in opportunities in Southeast Asia, all drawn by a region that is still defying the global economic slowdown by delivering solid economic growth as compared to Europe, the US and Japan.

According to US investment research firm Bain & Co, private-equity deals in the region in 2012 are expected to match 2011’s $5.3 billion before staging a rebound over the next two years.

“During the first phase of private equity in Asia, it was very much a China-India game,” said Singapore’s finance minister Tharman Shanmugaratnam at a recent event organised by US private-equity giant Kohlberg Kravis Roberts & Co (KKR) in the city state.

“Now ASEAN is attracting more interest from private equity,” he was quoted as saying by Dow Jones Newswires.

KKR in October opened its first office in Singapore, saying that it will invest more than $1 billion in the Southeast Asian region over the next five years as it sees increasing opportunities especially in Thailand, Vietnam and the Philippines, see our earlier story.

Rival firms Blackstone and General Atlantic also opened offices in Singapore this year, and TPG, Navis Capital Partners, Capstone and Carlyle Group said they are going to step up their investment activity in the region by seeking buyout deals and start-up finance opportunities as well as joint-ventures with established local investment firms, which include the big government funds like the Government of Singapore Investment Corp. or Malaysia’s Khazanah Nasional, as well as newly formed regional firms such as Axiom Asia Private Capital, Lombard or frontier market investors such as Silk Road Management or Indochina Capital. Investors from the Gulf are also among the players, e.g. Dubai’s Abraaj Capital.

At the same time, the center of private equity activities in the region is shifting away from Singapore to the rest of Southeast Asia. While Singapore used to account for 60 to 70 per cent of all incoming private equity money in the region, that share has come down to about 40 percent in favour of other destinations in ASEAN.
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Reading Time: 2 minutes

Carlyle Group is one the big global investment firms stepping up its ASEAN presence

Global private equity majors are showing rising interest in opportunities in Southeast Asia, all drawn by a region that is still defying the global economic slowdown by delivering solid economic growth as compared to Europe, the US and Japan.

Reading Time: 2 minutes

Carlyle Group is one the big global investment firms stepping up its ASEAN presence

Global private equity majors are showing rising interest in opportunities in Southeast Asia, all drawn by a region that is still defying the global economic slowdown by delivering solid economic growth as compared to Europe, the US and Japan.

According to US investment research firm Bain & Co, private-equity deals in the region in 2012 are expected to match 2011’s $5.3 billion before staging a rebound over the next two years.

“During the first phase of private equity in Asia, it was very much a China-India game,” said Singapore’s finance minister Tharman Shanmugaratnam at a recent event organised by US private-equity giant Kohlberg Kravis Roberts & Co (KKR) in the city state.

“Now ASEAN is attracting more interest from private equity,” he was quoted as saying by Dow Jones Newswires.

KKR in October opened its first office in Singapore, saying that it will invest more than $1 billion in the Southeast Asian region over the next five years as it sees increasing opportunities especially in Thailand, Vietnam and the Philippines, see our earlier story.

Rival firms Blackstone and General Atlantic also opened offices in Singapore this year, and TPG, Navis Capital Partners, Capstone and Carlyle Group said they are going to step up their investment activity in the region by seeking buyout deals and start-up finance opportunities as well as joint-ventures with established local investment firms, which include the big government funds like the Government of Singapore Investment Corp. or Malaysia’s Khazanah Nasional, as well as newly formed regional firms such as Axiom Asia Private Capital, Lombard or frontier market investors such as Silk Road Management or Indochina Capital. Investors from the Gulf are also among the players, e.g. Dubai’s Abraaj Capital.

At the same time, the center of private equity activities in the region is shifting away from Singapore to the rest of Southeast Asia. While Singapore used to account for 60 to 70 per cent of all incoming private equity money in the region, that share has come down to about 40 percent in favour of other destinations in ASEAN.
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