Investment Market Trends: Sectors

Dr. Bill Belew

Issue IV - July 7, 2006

Introduction by Mr. Stolyarov: Dr. Belew shares some information of the most lucrative sectors for investment in Asia. Dr. Belew explains the state of growth capital and venture capital funds in Asian countries, as well as the emergence of corporate buyouts there.  

I attended a recent Investment in China and India Summit hosted by Financial Research Associates.  I will use this forum to share some of insights that were given at this summit for the benefit of those hoping/thinking/planning on investing in an Asian country -- China, India, or Japan.

Growth Capital- Dominant type of fund in Asia by number, especially in country-focused funds; focused on backing firms that are already established but are looking for capital to support strong growth.

Buyouts- True control buyouts are a more recent phenomenon in Asia. Most funds focused on buyouts are larger Pan-Asian funds or are targeting Japan or Australia. Most Pan-Asian funds are subsidiaries or sister funds of established US or European private equity firms.

Venture Capital- Very few locally based early-stage-only funds, as the market is more focused on later-stage deals.
 
A number of US-based Venture Capital firms are founding Asian joint ventures or subsidiaries.

Source: Probitas

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Dr. Bill Belew is a former Intelligence Officer for a Destroyer Squadron. He lived 20 years in Japan, where he started a language school for Japanese ECS. Dr. Belew teaches classes for a vocational school and online for a national university.

See Dr. Belew's blog, PanAsianBiz, for news and discussions about business and current events in Russia and Asia. See ZhongHuaRising for Dr. Belew's reports on business in China, RisingSunofNihon on business in Japan, and TheBizofKnowledge on business education.

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