Investment Approach

Slidebox
Decrease Text Size Increase Text Size Print Bookmark Share

Our Strategy

At UOBVM, we believe in building a long-term relationship with our portfolio companies, viewing them as partners. We invest in growing companies, with proven track record in industries that benefit from emerging markets such as China and the Southeast Asian economies. The ideal entrepreneurs that we fund are those with visions and values that we share so that we may proactively work with their companies to create value for the benefit of all parties.

Ultimately, the main preoccupation and objective of our Funds is to achieve long-term capital appreciation that is sustained by a diversified portfolio of private equity investments in Southeast Asia (predominantly in the ASEAN* countries) and China.

*The Association of Southeast Asian Nations (ASEAN) is a political and economic organisation of ten countries located in Southeast Asia. Members include Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Burma (Myanmar), Cambodia, Laos and Vietnam.

ASEAN-China's continual growth

The ASEAN-China Free Trade Area offers plentiful opportunities, given its 2 billion consumers, combined GDP of approximately US$10.5 trillion and combined external trade of over US$2.5 trillion.

ASEAN's proximity to China, and its abundance of natural resources and industrial capabilities, has made ASEAN a vital trading partner to China and a strong pillar of support for China's long term economic growth. Bilateral trade between ASEAN and China grew from US$78 billion in 2003 to US$400 billion in 2012 (5 times increase with CAGR of 22%).

Our funds and investments are positioned to capitalize on opportunities resulting from the continual economic expansion in the “ASEAN-China Growth Corridor”.

Our Approach

Believing in the value of being proactive; our investment professionals first identify key market and sector trends, then search for potential winners from the relevant markets, sectors or industries.

Our evaluation is carried out through rigorous quantitative and qualitative research, including on-the-ground and face-to-face due diligence. We create a balanced portfolio through appropriate diversification by geography, investment stage and market sectors, in line with the funds' mandates, while taking into account risk and return considerations.

We invest in companies with:

  • Experienced and dedicated management team
  • Unique competitive advantages
  • Significant entry barrier
  • Significant earnings and growth potential
  • Attractive entry price

Risk Considerations

For each investment opportunity, we assess the risks involved in each of the categories below. We generally do not invest in a deal that encompasses more than two high risk factors.

  • Management risk
  • Market risk
  • Barrier of Entry risk
  • Execution / Implementation risk
  • Financial risk
  • Political / Regulatory risk

Investment Size & Stage

We invest in companies at the expansion/growth stage. We invest up to US$25 million per deal, depending on the funding requirements of the companies.

Creating Value

As a bank-backed private equity firm, we possess unique strength due to our strong understanding of financial discipline and risk management. We leverage on UOB's international network of group offices as well as its worldwide partners and clients. This international network brings instant credibility, stability and strategic value.

In addition, our network of offices and strategic partners in Southeast Asia, China and other countries help strengthen deal flow and enhance our value-add to our portfolio companies as we provide linkages among portfolio companies and strategic partners, assistance in market access, strategic alliances and operational presence in China and Southeast Asia.

Being part of a leading banking and financial group, we can draw upon the expertise and services of our sister divisions. Of particular value to our portfolio companies are corporate banking, debt financing, corporate finance and security brokerage services.