Serena Tan, CEO Gaia Investment Partners and Scott Hahn, Executive Director Hahn & Co, at CNBC CNBC on Thursday, March 13, Singapore.
CNBC
The private capital market could be headed for an earthquake, and several funds managers are facing difficulty in gaining cash, she told CNBC at CNBC at CNBC Converge live in Singapore.
The environment of low interest rates after the mowing means that the contract market has flourished, strengthening the records of the funds manager, Tan said. But many of these previously successful private capital players fought to raise funds in the current market, Tan added.
“We see this market, in fact it is a good reset for most of the private capital. For private capital in general,” she said.
“There is a quote that said many private capital players collected their last fund, they don’t understand it yet, don’t they?”
Investors are also becoming increasingly terrifying where they assign capital, she said, chasing what she described as investments that are “truly top -notch quartil.”
“You have to beat your public markets for your public markets … otherwise, why are you existing?” Tan said in an interview with CNBC David Faber.
One of the ways in which funds managers face the requirements of the private capital space is to simplify their business, Tan said. For example, she said that many now set up an “additional focus on establishing their operating team”, which includes setting up the right management structure and employment of the right talent to ensure that funds can increase their income and optimize the costs from the very beginning.
In Forward, Tan expects to “flourish” in the investments of sovereign wealth funds in Asia, given that the characters of Singapore GIC -A theme grow its teams.
“There is a spread that will come out, obviously, in places like Singapore, Hong Kong, but really in the whole region around Southeast Asia,” Tan added.
Opportunities in South Korea and Japan
In Japan and South Korea, Scott Hahn, CEO of Hahn & Co, an investment group for private capital based in South Korea, see options given the high level of domestic liquidity in markets.
“If you look at more market values in Japan and Korea, you see the opportunity to make transactions with more billion dollars with ownership and changing opportunities on high one -core digits,” Hahn said.
“We can perform acquisitions where, really, regardless of the impact on about 5% – this is quite attractive,” he added, comparing the market with the USA and its higher capital costs.
“Companies here, you have the opportunity to get more idiosyncratic yields, because … these capital markets are not so effective, and the contract for contracts is not at the levels you would see, I mean, in the US”
