Private Equity not dead in South East Asia

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) March 11, 2010 -- Unlike North America and Europe private equity in South East Asia is not on its last legs. Veronica John, CEO of IDFC Capital, believes that energy infrastructure development in South – East Asia may reap huge returns if the initial obstacles are overcome.

“The power-related sector, solutions for urban water and waste management could potentially reap huge returns long term. However managing regulatory risk, local government relations, return expectations and timelines could be some of the difficulties faced when attempting to tap into these sectors,” said John.

But energy infrastructure isn’t the only emerging sector in South East Asian private equity, Hanjaya Limanto, Managing Partner of Aureos Capital, believes that in Indonesia there are plenty of opportunities being driven by a large economy. “The competition is limited compared to other more popular emerging markets like China and India,” he said.

And Limanto does not stop there, apart from limited competition, investors can also look forward to consumption patterns driven by GDP per capita, which are growing across the region. “One can easily forecast products or service categories which will experience rapid growth from comparative studies,” said Limanto.

“Indonesia with its big population is at an inflection point at which GDP per capita is growing past USD 2,000 and reaching USD 4,000. There are a number of product categories and services which will enjoy robust growth. Additionally, comparative studies will also reveal hidden opportunities. Consumer sectors do not require a lot of capital expenditure and offer high operational leverage, thus it can generate high return of assets and return on equity. ” he added.

So despite reports from the United States claiming that private equity is dead, it is very much alive in South East Asia.

Apart from Hanjaya Limanto and Veronica John, other Private Equity experts will be in Singapore’s at the 5th annual Private Equity South East Asia Summit, on the 14 and 15th of April, to discuss regional investment opportunities.

For more information on the summit please feel free to contact Bryan Camoens at bryan.camoens@iqpc.com.sg at 6722 9406 or visit www.private-equityseasia.com