Capitalize on potential opportunity...appreciate all advice
Quick on my background: Semi-target undergrad -> 4 years corporate experience, semi-target MBA -> 1 year MM PE firm, focus on manufacturing and industrial -> 6 year HF ($400m AUM l/s equity, generalist). I have an okay track record with the HF, have my own sleeve for 2.5 years now, 18% alpha YTD, very lucky. Current firm is very happy with my performance and provided a visible career path.
I came from well-connected family in Asia, and now due to the change in the home country economy and political environment, there's going to be a set of good opportunities for private equity play (state-own enterprises are going to privatize, large government subsidization for strategic projects, government selling down operating assets that can be improved due to mismanagement/corruption, etc...deal size anywhere from $100m-$2b, in hospital/telecom/manufacturing/mining/chemicals/textiles). I have direct access to all these deal and the decision makers (CEOs/board chairman and the country president), and they are open to the idea of working with me if I can bring expertise and foreign capital. Family wealthy friends are also very interested and are willing to put in $200-300m to invest along side with capital raised in the states. We know local banks CEOs very well and getting competitive leverage from them is not an issue. I have already talked to all these parties about the idea and most people are onboard.
What is the best way to capitalize on this opportunity? Is setting up my own shop feasible at all with my humble background? I don't mind having partners that fill the gap but not sure how should I approach this? All P/E and investor connection that I have in the states know my firm and my boss so I'm not sure it's a good idea to talk to them first. My current job is very well-paid but I want to make a big leap.
Thanks all
Edit: I guess my main question is that is it even a good opportunity that's worth pursuing, given how hard it is to raise capital, finding the right partners, and my next to none PE experience. I have shy of $1m nw that I don't mind risking for this (got a safety net from parents, very lucky me). If you all think this is a good opp, any suggestion how to play this? Bring the opp in front of big PE firm with international exposure? hire cap raise people?
Is this even a question? You can borrow $200mm from a bank and own 100% of the upside or you can set up a PE fund and be cut down to 20% immediately before fee breaks.
Local investors are family connection but they are not charity. They are not going to take all the risk with me. They want to be sure that I can bring in a seasoned team plus capital committed from seasoned investors in the states.
If this is post Soviet privatization voucher scheme part deux sign me up…we’ll back you. You should provide the muscle too when wannabe Deripaska’s show up with their thugs
Mod keeps deleting my comment so I'm gonna reply you here. Yes, it's very similar to post Soviet privatization. Our govt model is based on the Soviet model (of course lots of change now, but maybe not enough). We're less corrupted and more peaceful people in general, so that risk is lower (but I have the muscle anyway, family member are seniors in national security council). DM me I will provide extensive details.
set a fund and go get em big dawg
Some internal contradictions in what you’re laying out but if you’re at the front of a line to LBO state owned assets that have a realistic chance of paying down debt and opportunities for improvements would absolutely jump at it. But if you come from a humble background are you as connected as you say?
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