In considering potential portfolio companies, we seek to simultaneously exploit the experience of our team and the mega-trends which are shaping Asian and Middle Eastern economies. Our macroeconomic point of view is guided by five significant long-term themes which we believe are shaping our target markets and defining their growth profile:
Arrival of the Consumer
The growth of personal disposable incomes, rising consumer confidence and the young demographic profile of the population is driving explosive growth of consumption in a wide range of goods and services.
The acceleration of economic growth is putting a strain on existing infrastructure and creating new requirements. In turn, gradual deregulation is driving massive investments by the private sector in the development of ‘hard’ infrastructure such as transportation, energy, and allied infrastructure, as well as ‘soft’ infrastructure like education and healthcare.
Telecommunications / Information Technology
Global technological advances over the past two decades have exponentially reduced the cost of communication. Globally competitive private players have emerged and established themselves by extending networks to massive unconnected populations with increasingly sophisticated communications needs. Simultaneously, gradual deregulation in this space is opening up new opportunities and frontiers in communications.
Manufacturing / Engineering
Value-Added Manufacturing and Engineering
Manufacturing companies are taking advantage of improving physical infrastructure to target domestic and export markets, and leveraging the large available labor force to improve their global cost-advantage. Abundant engineering talent is also driving some of these firms to move up the value chain into medium and high-tech manufacturing.
Penetration of Financial Services
Most Asian economies are hugely under-penetrated by financial services compared to their Western peers. Rising incomes and gradual deregulation are driving rapid sectoral growth and spurring companies and entrepreneurs to come up with new business models and innovative savings and loan products.