Private equity in 2023 and beyond
As the new macro landscape, with its unprecedented levels of uncertainty, slowly but surely settles in, private market investors are increasingly looking to reduce external risks and prioritise factors that they can control. This will result in a more discerning approach to asset selection, more control over deals, and even stronger focus on operational excellence. What this means for private equity deal making in the region will be discussed by our panel of esteemed investors who will share their respective investment mindsets.
- How is the external landscape affecting investment decisions?
- How are GPs evolving to remain competitive?
- What are the viable liquidity options?
- What do the next two years hold for the industry?
Navigating Southeast Asia private markets
As competition from local and global players heats up, finding the right opportunities for private market investors in Southeast Asia’s fragmented landscape is becoming more difficult. In an increasingly challenging macro environment, one with increased scrutiny on financial performance, investors who deliver on the region’s significant promise can hope for future success. Our panel of leading investors will give their views on the best strategies for navigating the challenges in the region.
- How much is the macro environment affecting Southeast Asia’s private market landscape?
- What are the key concerns for GPs and LPs in the region?
- Has the opportunity set changed in recent years? What geographies and sectors offer the best reward?
- To what extent does ESG play a part in investment decisions?
Networking Coffee Break
Venture capital: Shifting dynamics
Venture capital in Southeast Asia seems to be quite resilient and might be reasonably placed to ride out the global tech downturn. Although valuation corrections, liquidity, and macro challenges persist, the emergence of sectors such as sustainable food, live streaming commerce, and climate solutions give cause for optimism. How this change in dynamics plays out remains to be seen and will be discussed by our panel of leading tech investors.
- How resilient is the region amid the global tech uncertainty?
- Does the market expect more quality exits and up-rounds? Will there be more listings in the region’s exchanges?
- What tech opportunities are emerging?
- What is the outlook for later-stage funding?
South-Southeast: The new growth engine in Asia?
South and Southeast Asia are becoming more attractive for private market investors and have performed reasonably well in the last few years. There is no reason to believe this trend will not continue as LPs seek to diversify their allocations and capitalise on the potential. Many GPs operate in both markets and expanding from one region to another seems like a natural thing to do as there a lot of market similarities. Our experienced panel of investors share their approach to both markets and what are their key ingredients for success.
- What are the similarities between these two markets?
- How difficult is to expand from one market to another?
- Are we seeing more buyout deals done?
- How GPs evolved in these markets?
New sources of capital: Democratisation of private equity
There are grounds to believe that the current macroeconomic landscape could advance the introduction of mass-market individual investors into private equity. With the influx of family offices and private wealth platforms in the region, and amid a more difficult fundraising environment, fund managers might be more interested in accessing this untapped investor base. As often is the case, technology and regulation play a part and our panel considers the long-term implications of democratising access to private equity.
- What is the role, both good and bad, of technology platforms in democratisation?
- What needs to be done on the regulatory/reporting front?
- Which sectors and strategies get the most traction with these investors?
- Are semi-liquid products the best way to reach the mass affluent?
ESG in the region: Moving up on the investment agenda?
With ESG becoming a key driver for investment, private market investors are increasingly being scrutinised for their climate change, social, and governance considerations in investment decision making. Materiality assessment plays a big part in establishing an ESG framework and how fund managers and their portfolio companies factor in materiality and implement ESG varies in practice across regions and companies. A group of leading investors will offer their insights into what they are doing on the fund and portfolio level to get ahead.
- How do fund managers in the region implement ESG?
- What are the key challenges facing GPs of all sizes in ESG implementation?
- To what extent is ESG becoming a dominant factor in due diligence?
- How are GPs addressing LP concerns over ESG?
Day one close/cocktails
Secondaries: The new driver for liquidity?
Secondary investors are more encouraged by an increasing openness to secondaries in Asia. LPs are keen to generate liquidity given market uncertainty, while GPs who previously declined to take part because they had IPOs in the pipeline are now revising their expectations. As investors expect longer holding periods, our panel explores the way forward on the path to liquidity.
- How can secondaries be a tool for liquidity?
- Are we seeing a meaningful change in valuations?
- What and where are the best opportunities?
- What level of appetite is there for single-asset continuation funds?
Energy transition and decarbonization opportunities
Decarbonisation and the road to net zero opportunity set has been compared to the technology wave as private market investors, corporates, and governments look to collaborate and unlock the enormous potential of the green economy. However, although it comes at a significant cost and there is still plenty of work to be done, technology, innovation, and collaboration can play a big part in accelerating the transition. Our panel of experts discuss how to unlock the opportunities provided by the energy transition shift.
- What are the opportunities for green investment and how can one accelerate the net zero transition?
- What are the challenges holding back investment in the green economy?
- What role does innovation and technology play in accelerating the transition?
- How can private equity firms access sustainability-linked financing?
Technology and digital: Finding the next set of opportunities
Notwithstanding the more cautious approach by investors amid the deteriorating macroeconomic landscape, Southeast Asia’s digital economy remains strong in terms of its growth trajectory. From e-commerce to digital banks and climate solutions, technology continues to fuel business growth and provide opportunities for private market investors. Our panel of leading investors consider the best ways to harness the new economy and the services and investments that will stand the test of time.
- What new sectors are emerging?
- Has funding continued to flow into the ecosystem? What is the source of funding?
- What are the most viable exit routes for businesses?
- Are we seeing a stronger focus on financial and risk controls among businesses in the region?
Examining LP views on the region: Past, present, and future
With institutional investors becoming more selective on allocations and new commitments amid worsening market conditions, it is understandable LPs might be wary of less established markets like Southeast Asia. There is recognition that the region has significant potential, however GPs can benefit from better track records, transparency, and internal processes to demonstrate the maturity of the market. LPs who have been long in this market, share their views on the evolution and what the future holds for this promising but complex market.
- Investment considerations – what are the prime concerns for LPs in the region?
- LP-GP relationship - is more transparency needed?
- Alternative assets - private debt still in vogue?
- ESG – what are LPs’ expectations?
- Liquidity – secondaries and local exchanges?
Networking lunch and close of conference
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