Asian Megafund Private Equity Fund consideration - Help Needed

Hi everyone,

Having read some of the great posts here, would love to get opinions on my current situation regarding potential Asia Megafund Offers.

At stage doesnt want to disclose the name of the funds yet as it is not finalised, but will disclose it once it is all finalised, at this stage think of funds like TPG, Blackstone, Warbug, etc.

Currently in the process of a final round for one and potentially receiving an offer from another, at this stage will call them fund A and fund B.

I have the following goals in mind when choosing between offers:
1. Would like to have a good deal flow (obviously)
2. Would not just like to do China deals and would love to get expsoure to other more complex deals in different Asian countries, although I understand majority of Asian deals are happening in China (90%?). However, I heard LBOs can be done in Southeast Asian countries and ofcourse in Australia and New Zealand (most PE fund cover Australia and NZ from their Asia offices) but they are very rare
3. Exit considerations, in case things doesnt workout in Asia (doesnt like the lifestyle etc), would still want to have some options open for another PE exit in Europe or U.S. I currently work in Europe and really do enjoy working here
4. Ideally not changing firm again in the future, would like to stay at the next firm for at least a couple of years
5. Location wise, would prefer HK or Singapore given it has a better standard of living. But understand nowdays if you want to do China PE you will have to be based in Beijing or Shanghai as most mega fund have relocated their HK offices to the mainland
6. Generally speaking, I enjoy the corporate culture (relatively speaking) in Europe and the U.S, so would want to find something similar/close to in Asia, that is why I only went for the global mega funds rather than local funds although deal flow is much higher at local funds

Comparing the two funds. On a global basis both funds are the same in terms of reputation. Down to specifics in Asia, a couple of points can be mentioned.

Fund A:
1. Based in mainland China, so lower quality of life
2. Perhaps harder to get back to Europe or the U.S given I will be only doing Chinese deals (most minority stake deals, or pre IPO financing, rarely any full buyouts)
3. Very strong fund in China, good deal flow
4. Corporate culture will be relatively different to Europe as most people in the fund are local Chinese talents
5. May have to change locations or firms in the future given I dont think i can live in mainland china in the long term

Fund B:
1. Based in Singapore, so better quality of life
2. Easier to get back to Europe or the U.S in the future, given I will be covering Chinese, Southeast Asia and Pacific deals, so the deals I will be looking at will be more inline with Europe or the U.S
3. Weak fund in Asia, honestly speaking I dont see myself completing any deals in the short term (1-2 years) with this fund given it is not very strong in China, and deals in Southeast Asia and Pacific regions are rare
4, Better corporate culture, I really enjoyed meeting the people there and they all seems like very good guys that will teach me and most of these people have worked in the Europe and the U.S. Some of their MDs are from the London or the NY office (maybe the reason they dont do enough deals in China?)
5. I do see myself staying at this fund longer term, although in the short term I dont do deals, but if i want to stay for the long term, maybe deal experience is less important?

My view is that it is really a long term vs short term decision, fund A, i will be doing lots of deals but will probably looking for an exit in the future and lower quality of life (both work and personal wise), fund B, I might be able to stay there longer but if I do want to exit in the future it might be much harder given I havent done many deals, although I will have a better working and living environment.

You insights and help is much appreciated. Which one should I go for?

Comments (5)

Dec 20, 2011 - 9:31am
samoanboy, what's your opinion? Comment below:

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