Sunday, 24 March 2013

Private Equity in South East Asia

Just written a piece for the Corporate Finance Faculty looking at the challenges and opportunities for businesses establishing operations - and Private Equity firms establishing funds - in South East Asia.

Here are the key findings:

-Indonesia, the world’s fourth-largest economy, is rich in mineral resources, and from a private equity perspective, has a growing and affluent middle class, making it an ideal destination for investment

-Malaysia, another growing economy - and former British colony - is home to a thriving consumer electronics industry

-In China, the regulatory obligations in establishing a fund are far more stringent than in Hong Kong or Singapore. For instance, it can take between six to 12 months to gain regulatory approval in China, whereas the Hong Kong legislature is more closely tied to that of the UK

-Funds raised in the region are expected to grow at an annual rate of 30% cent over the next three years, making it potentially one of the most lucrative markets globally