Private Equity in SEA
Can anyone shed light on the PE scene in Southeast Asia (Singapore)?
Know a bunch of MFs have a presence there but there's not much intel on WSO. I'd love to get a sense for
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The top PE players in the space,
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What it takes to move from a US fund to a Singapore-based fund
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Why the region doesn't get as much attention (not a strong exit strategy for portcos, etc)
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Longer term thoughts on investing in the region
Any other insights would be appreciated!
Bump
Following
Based on the most helpful WSO content, the Private Equity (PE) scene in Southeast Asia, particularly in Singapore, is characterized by a mix of local and international players. Here are some insights into the PE landscape in Singapore:
Top PE Players in the Space:
Moving from a US Fund to a Singapore-based Fund:
Regional Attention and Challenges:
Longer Term Thoughts on Investing in the Region:
These insights should provide a foundational understanding of the PE environment in Singapore and Southeast Asia. The region offers unique opportunities and challenges, and success often depends on deep local market knowledge and the right strategic approach.
Sources: Q&A: Megafund Asia Private Equity, Non US/Europe IB/PE Overview, Non US/Europe IB/PE Overview, Q&A: Mega Fund Associate - Asia Pacific Edition, Private Equity in India
Bump
Also interested - can anyone share a list of funds?
1. Most of the megafunds have a presence in Singapore. CVC, Baring EQT (now just EQT), TPG, Warburg, Blackstone, KKR, all have teams in Singapore. LPs typically see CVC as having the strongest team in SEA. If you move down in fund size, I'll categorize it as the following (non-exhaustive):
Mid-cap: Navis, Creador (minority growth), Growtheum (minority growth), Quadria (healthcare), Dymon Asia PE, Tower Capital Asia
Small to mid-cap: KV Asia, Southern Capital, Novo Tellus, and many other small funds, some of which operate deal-by-deal
2. It used to be that US experience was highly valued. Nowadays, language skills are at a premium as it is important to do deals in a region with so many different languages spoken. Most SEA-focused funds staff teams on a country-by-country basis if they have some scale (e.g. Dymon, Navis, Creador)
3. There's historically been difficulties across sourcing, execution and exit in SEA. Sourcing -- lots of larger companies are still family-controlled, and therefore very difficult to navigate family politics + become a trusted party to do deals. Also deals can be surprisingly expensive. In 2021, a minority stake in a Malaysian private healthcare group was bought at an implied valuation of >30x EV/EBITDA... Strong performing businesses tend to be surprisingly expensive in SEA. Execution -- many PE firms have had trouble scaling their portfolio companies regionally due to the vastly different legal frameworks, consumer types, cultures, and so on. Exit -- strategics are not super acquisitive, capital markets are not very liquid, so it can be challenging to find buyers at your desired valuation.
4. The hope is that PE in SEA will start developing and becoming a much deeper market like China eventually (though China's buyout market is still some ways behind the west). Doing PE deals in SEA is generally a challenge... you need to be very well-connected to raise money and do deals. The best deals here are always off-market
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