Serena Tan, CEO Gaia Investment Partners and Scott Hahn, CEO Hahn & Co at Converge Live Converge on Thursday, March 13, Singapore.
CNBC
The Private Equity market can be guided by shock, and several fund managers encounter difficulties in collecting cash, Serena Tan, CEO Gaia Investment Partners, Malaysian Funds Fund, said CNBC at CNBC at CNBC Will coincide live In Singapore.
According to TAN, the low interest rate means that the transaction market is strengthening, strengthening the achievements of fund managers, according to TAN. He added that many of these previously successful Private Equity players try to raise funds on the current small market.
“We see that this market is in fact a good reset for many private equity. Overall for private equity, “she said.
“There is a quote that said that many private equity players have gathered their last fund, they just don't realize it yet, right?”
Investors are also becoming more discerning, where they allocate capital, she said, chasing what she described as investments that “are really the highest quarter.”
“You must have your private markets overcoming public markets … because otherwise, why do you exist?” Tan said in an interview with David Faber of CNBC.
Tan said that one of the ways to deal with the requirements of Private Equity space is to improve their activities. For example, she said that many now put up “additional focus on his operational team”, which includes establishing an appropriate management structure and employing the right talent to ensure that funds are able to increase revenues and optimize costs from the very beginning.
Following forward, Tan expects a “boom” investment through sovereign property funds in Asia, taking into account that such as Singapore Gic and Temasek are developing their teams.
“There is a spread that will appear, of course, starting in places such as Singapore, Hong Kong, but really in the entire region of Southeast Asia,” added Tan.
Possibilities in South Korea and Japan
In Japan and South Korea Scott Hahn, CEO Hahn & Co, the private equity investment group based in South Korea, sees possibilities, taking into account the high level of domestic liquidity on the markets.
“If you look at more value markets in Japan and Korea, you see the possibility of conducting transactions worth many billion dollars with ownership and changes to high single numbers,” Hahn said.
“We can take over, in which, regardless of the leverage we want for about 5% – it is quite attractive,” he added, comparing the market with the USA and its higher capital costs.
“Companies here, you have the opportunity to obtain more idiosyncratic phrases, because … these capital markets are not so efficient, and competition with offers is not at the level that you would see in the USA”