There are obvious reasons why LPs are asking for these relationships. Look for a hot sector or market that is likely to benefit from strong macro conditions or multiple expansion, buy a minority stake in a representative company, wait for top-line growth to kick in and exit at a premium. The views expressed do not reflect the opinions of all portfolio managers at Morgan Stanley Investment Management or the views of the firm as a whole, and may not be reflected in all the strategies and products that the Firm offers. Organizing for a Digital World How to adjust the operating model and revive stalled digital efforts. GPs should be able to identify the critical management capabilities for success during due diligence—well before the company has fully shaped a new strategy. Yet few PE firms do it well—including those focused on the Asia-Pacific region.
Private equity in China: Performance may be volatile, and an investor could lose all or a substantial portion of his or her investment. While top-line growth remains the strongest catalyst for value creation, a reliance on GDP and multiple expansion is giving way to a focus on performance improvement and improved margins. The experienced investment team is led by senior professionals with extensive industry relationships, in-depth market knowledge and the ability to apply international investment principles within each local context. As the sources of value in the industry shift, GPs will need to add new capabilities and exercise new muscles to remain competitive. Please provide a professional email:
Private Equity in Southeast Asia | KPMG | SG
Having access to industry-specific digital developments on an ongoing basis, through the right partnerships, gives GPs a handy radar for potential disruption. Check out Law's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law. It also quickly revealed a weak presence in smaller Chinese cities compared with the competition. Using global industry benchmarks and an extensive customer survey, the fund determined that the company had the potential to multiply its online revenue by 20 to 50 times during a typical PE ownership cycle. Make talent a top priority. Consulting services We are known for our holistic perspective. Finding attractive deals, however, is getting harder and harder—almost three-quarters of the respondents said it was one of their most pressing challenges see Figure 4.
Many GPs are viewing these changes with trepidation. Analyzing assortment data can shine a light on relative pricing, product mix and discounting strategies. With multiples soaring in the Asia-Pacific region, it was clearly a good year to sell companies. Tax Tax transparency - Steering through the new world. Despite intense competition, steady economic growth may no longer propel multiples. Topics in this category include: By Alec Macfarlane Alec Macfarlane.