Investment Focus

Middle Markets

Hidden opportunities exist with Asian middle market companies primarily due to the ongoing disintermediation of companies from sources of capital – most global investment platforms do not address the middle market space on a regional basis.

Approximately 98% of market capitalisation among developed Asian public markets is attributed to companies with an individual market capitalisation greater than US$1 Bn and companies with market capitalisation less than US$500 M.

There are less than 1,000 companies with a market capitalisation greater than US$1 Bn while there are more than 10,000 companies with less than US$1 Bn of market capitalisation and at least an equal number of privately held companies of similar size – all offering a wide range of financing opportunities for middle market focused investment firms.

Public markets are often accessed by large-cap companies, while a large majority of listed middle market companies suffer from discounted valuations, limited research coverage, limited liquidity and the relatively high transaction cost of public market financing.

By Market Cap. Contribution

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Middle-Market Targets Defined


 

Enterprise Value

US$50 M to US$500 M


 

Revenue

US$50 M to US$500 M

Strong bias towards recurring revenues  


 

Profitability & Cash Flows

Positive EBITDA/Cash Flows Manageable Capex


 

Limited Financing Sources

Limited access to public markets and bank financing