Private Equity: Southeast Asian Private Equity Has $8.7 Billion to Spend

August 26, 2020 | Latest News, News, Private Equity
https://dailyalts.com/wp-content/uploads/2020/08/southeast-asia-part-3.jpg

Private Equity: Southeast Asian Private Equity Has $8.7 Billion to Spend

Despite the Coronavirus pandemic, private equity companies in Southeast Asia are sitting on a lot of cash.  In fact, the pandemic has created more opportunities for these companies.  One company is Ascent Capital Partners — a Singapore company planning to invest in tech, education, and healthcare start-ups.  These investments will be in Myanmar, which has made massive technological advancements in the past decade.  Ascent Capital has $70 million to spend, and has already spent $26 million in June.  It also plans to make multiple $10 million investments in the near future.  

Private Equity Remains Resilient 

Although Asia-focused firms initially struggled at the onset of the pandemic, there is a lot of cash they are ready to invest.  At first, these firms’ fundraising dropped by 44 percent; however, they now have a total of $8.7 billion to spend.  This cash will aim to invest in start-ups and emerging mid-sized companies in the Southeast Asia region.  Private equity firms are not the only companies sitting on tons of cash.  Venture capital also has cash on hand.  According to Insignia Ventures Partners — which closed at $200 million last year — investors are being more strategic.  The rise in funds spurred from the help of higher interest rates.  According to managing partner Tan Yinglan, “People saw how companies like Sea, Grab, and Gojek emerged as market makers, and have been rushing to cash in on the next generation of Southeast Asian start-ups, from tech giants to various other institutional investors, endowment funds, high net worth individuals, and family offices.”  Essentially, Southeast Asia is a strong emerging market, especially for the tech industry. 

With the help of the pandemic, the tech industry is thriving due to an increasing demand in digitalization.  Technology companies and similar emerging markets in Southeast Asia have remained resilient.  In the long run, private equity funds will capitalize on the expansion of these markets, as it seems certain they will continue to thrive.  

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Shape

Latest Alternative Investment News

https://dailyalts.com/wp-content/uploads/2021/01/cyber-security-3400555_640.jpg
Digital Assets: WhatsApp Alternative Signal Said To Be Developing Crypto Payments
January 26, 2021     Digital Assets, News

An investigation report by Platformer’s Casey Newton says messaging app Signal, which promotes privacy through end-to-end encryption, without any commercial motive, is in turmoil. Downloads of the app after Facebook’s…

https://dailyalts.com/wp-content/uploads/2021/01/money-2696228_640.jpg
Liquid Alternatives/Private Equity: A Mackenzie Mutual Fund Offers Private Equity Exposure To Retail Investors
January 26, 2021     Liquid Alternatives, News, Private Equity

The Mackenzie Private Equity Replication Fund is a new mutual fund from Mackenzie Investments launched earlier this month. Mackenzie is active in liquid alternatives, and this is its sixth fund…

https://dailyalts.com/wp-content/uploads/2021/01/night-4694750_640.jpg
Venture Capital: Matrix Partners China Raises $1.2B For Sixth Fund
January 26, 2021     Latest News, News, Venture Capital

Matrix Partners China, an affiliate of Matrix Partners, the U.S. venture capital firm, has raised $1.2 billion for its sixth China fund according to an SEC filing. It is an…

https://dailyalts.com/wp-content/uploads/2021/01/nithin-kamath.jpg
FinTech: Kamath’s Rainmatter VC Incubator Mulling Alternative Investment Fund
January 26, 2021     FinTech, Latest News, News, Venture Capital

Indian entrepreneur Nikhil Kamath, who achieved fame and fortune by bootstrapping Zerodha, India’s first discount broker, to unicorn status, is setting up a fund for investing in fintechs. Rainmatter, Kamath’s…