Private Equity Investments
ACM has made investments in a range of businesses including housing development, natural resources, healthcare services, insurance services, pharmaceutical manufacturing and distribution, office products manufacturing, telecommunications services and consumer product distribution. Most of the investments have been in the Greater China area, particularly the PRC and Hong Kong. We have also invested in Asian companies based outside of Greater China on a select basis.
Examples of our private equity investments include:
Asset Management and Realizations
ACM maintains a close working relationship with management of its portfolio investments. Its policy is to have Board representation on each company as well as frequently serving on board sub-committees. We also provide formal and informal advice to the companies in order to achieve added value for our investments.
Realizing Asian private investments is the most challenging part of managing private equity assets in Asia. ACM focuses on the most appropriate exit strategy for its investments in order to maximize the value of its assets. Examples of successful exits are (1) the trade sale of its interest in a Tianjin based pharmaceutical manufacturing and distribution company, (2) the sale of a controlling interest in a Hong Kong insurance company to a major international insurance company and (3) the sale of a substantial interest in a major international resort company to a real estate private equity fund.
The geographic focus of ACM’s private equity investments is Greater China and certain other countries in Southeast Asia. These are the markets where ACM has decades of experience resulting in deep knowledge of the business community, legal and regulatory frameworks, and the capital markets. ACM has experience in investing in a variety of industries. ACM targets investments in companies that range in stages from mezzanine, pre-IPO to small-cap listed companies.
Our investment criteria dictate that private equity investments must be scalable and provide the opportunity for the business to gain sufficient critical mass that will support an exit strategy by way of an IPO or trade sale within two to three years. Our investments take the form of equity or equity-related forms of debt instruments that are structured to minimize risk while still benefiting from the equity ownership.
ACM generates its deal flow through an extensive network of contacts in the region. This network of contacts has been developed by ACM’s partners and management for over thirty years through their active participation in Asian regional businesses at the most senior levels.
Our management team has been very successful at adding value to private equity investments through assisting in corporate development, obtaining required management and resources and managing exits. Examples.
Successful investments in the Asian markets require significant
involvement by the investor in closely monitoring each investment in order
to manage unforeseen risks when they occur and adding value to its investee
companies. ACM does this through our extensive experience and relationships
in the region.