DBS Bank has set up a US$100 million private equity fund to invest in China.
The fund - to be run by DBS Private Equity unit - will put money in promising unlisted companies that could eventually seek listing on Chinese stock markets.
Mr. Melvin Teo, managing director and head of DBS Private Equity Group, said on Thursday that despite economic conditions, China remains a key market for DBS while the share market crash has brought valuations back to more afordable levels.
‘We believe in its long term potential and as one of the best capitalised bank in Asia, we are well-positioned to stand by our customers as well as to cultivate new ones,’ said Hong Kong-based Mr. Teo.
He pointed out that China is the single largest private equity market in Asia, with almost US$10 billion of investment transactions last year.
That makes it a very attractive investment hub for private equity firms, especially those positioned to tap on the upturn when global markets recover.
‘We believe that the China growth story remains intact and when the recovery comes in the region, China will probably be one of the economies that will experience an earlier and faster recovery,’ said Mr. Teo.
He added that by setting up the fund now, DBS will be able to step up its investment pace in the various industries and firms the bank believes can be winners.
The fund will provide capital to mid-to-late stage firms in growth industries, especially those dealing in daily consumer goods and services.
Over the next two to three years, DBS will invest an average of US$10 to 20 million in each company in exchange for minority stakes. The bank will consider eventually listing them in China.
1 comment:
DBS sets up China fund
By Francis Chan
26 February 2009
DBS Bank has set up a US$100 million private equity fund to invest in China.
The fund - to be run by DBS Private Equity unit - will put money in promising unlisted companies that could eventually seek listing on Chinese stock markets.
Mr. Melvin Teo, managing director and head of DBS Private Equity Group, said on Thursday that despite economic conditions, China remains a key market for DBS while the share market crash has brought valuations back to more afordable levels.
‘We believe in its long term potential and as one of the best capitalised bank in Asia, we are well-positioned to stand by our customers as well as to cultivate new ones,’ said Hong Kong-based Mr. Teo.
He pointed out that China is the single largest private equity market in Asia, with almost US$10 billion of investment transactions last year.
That makes it a very attractive investment hub for private equity firms, especially those positioned to tap on the upturn when global markets recover.
‘We believe that the China growth story remains intact and when the recovery comes in the region, China will probably be one of the economies that will experience an earlier and faster recovery,’ said Mr. Teo.
He added that by setting up the fund now, DBS will be able to step up its investment pace in the various industries and firms the bank believes can be winners.
The fund will provide capital to mid-to-late stage firms in growth industries, especially those dealing in daily consumer goods and services.
Over the next two to three years, DBS will invest an average of US$10 to 20 million in each company in exchange for minority stakes. The bank will consider eventually listing them in China.
Post a Comment