By AVCJ Larissa Ku
SPAC deals and GP-led secondary transactions are bringing more liquidity options to Southeast Asia, a geography where private equity investors have often struggled to achieve exits, industry participants told the AVCJ Singapore Forum.
Foundation sees opportunities in Southeast Asia involving venture capital portfolios because the industry is still in its infancy and portfolios are taking time to mature. But more generally, there remains a significant mismatch between the amount of capital raised and deployed in the region and the amount that has come out in the form of distributions.
“The region has historically been plagued by a lack of liquidity and optionality,” said Thomas Lanyi, a managing director at CDH Investments. “Not long ago, few economies were large, and many were sub-scale for investors. The stock markets in some cases were underdeveloped, very speculative in nature, and over-regulated. Even today, it is difficult for LPs to get statistically significant data on exits in this part of the world when making strategic decisions as to where to allocate their capital.”
He is encouraged by rising liquidity and optionality. Alongside SPACs and secondaries, there are more sponsor-to-sponsor transactions as larger GPs are becoming increasingly active in Southeast Asia, while corporates and corporate VC units – notably those from China – are pursuing deals.
Read More：https://www.avcj.com/avcj/news/3024953/gps-see-more-paths-to-liquidity-in-southeast-asia-avcj-forum
By AVCJ Larissa Ku
SPAC deals and GP-led secondary transactions are bringing more liquidity options to Southeast Asia, a geography where private equity investors have often struggled to achieve exits, industry participants told the AVCJ Singapore Forum.
Foundation sees opportunities in Southeast Asia involving venture capital portfolios because the industry is still in its infancy and portfolios are taking time to mature. But more generally, there remains a significant mismatch between the amount of capital raised and deployed in the region and the amount that has come out in the form of distributions.
“The region has historically been plagued by a lack of liquidity and optionality,” said Thomas Lanyi, a managing director at CDH Investments. “Not long ago, few economies were large, and many were sub-scale for investors. The stock markets in some cases were underdeveloped, very speculative in nature, and over-regulated. Even today, it is difficult for LPs to get statistically significant data on exits in this part of the world when making strategic decisions as to where to allocate their capital.”
He is encouraged by rising liquidity and optionality. Alongside SPACs and secondaries, there are more sponsor-to-sponsor transactions as larger GPs are becoming increasingly active in Southeast Asia, while corporates and corporate VC units – notably those from China – are pursuing deals.
Read More：https://www.avcj.com/avcj/news/3024953/gps-see-more-paths-to-liquidity-in-southeast-asia-avcj-forum