EU / ASEAN

FINANCIAL CROSS-BORDER MARKETS

WE HELP EU/ASEAN OVERCOME CROSS-BORDER DEBT-CAPITAL AND PRIVATE FUND DISTRIBUTION CHALLENGES

We solve complex regulatory, legal and marketing problems across-borders of SME corporate finance and Fund marketing areas

Our role as “go-between” EU/ASEAN markets is to facilitate (i) SME with International debt capital services such as debt structuring, debt origination and placement , (ii) Alternative Investments fund managers to “passport” Alternative Funds such as Private Equity, Hedge Funds, Structured products










EU / ASEAN CROSS-BORDER FINANCIAL OPPORTUNITIES

EUROPEAN UNION OPPORTUNITIES FOR ASEAN FINANCIAL MANAGERS


  • EU has 27 member states that are located primarily in Europe: Austria, Italy, Belgium, Latvia, Bulgaria, Lithuania, Croatia, Luxembourg, Cyprus, Malta, Czechia, Netherlands, Denmark, Poland, Estonia, Portugal, Finland Romania, France, Slovakia, Germany, Slovenia, Greece, Spain, Hungary, Sweden, Ireland
  • EU total population of about 447 million.
  • The euro (€) is the official currency of 19 out of 27 countries
  • Europe-based alternative asset fund managers holding €1.62tn in AUM
  • The total volume of institutional assets under management allocated to private debt is estimated to be around US$638bn globally.

ASEAN OPPORTUNITIES FOR EU FINANCIAL MANAGERS


  • ASEAN is an attractive market of 600 million people with an estimated GDP of around US$ 2.7 trillion including Indonesia, Thailand, Vietnam, Singapore, Malaysia, Philippines, Cambodia, Myanmar (Burma), Laos, Brunei
  • ASEAN as a whole represents the EU’s 3rd largest trading partner outside Europe (after the US and China) with more than €227.3 billion of trade in goods and services in 2017.
  • The EU is ASEAN 2nd largest trading partner after China, accounting for around 13% of ASEAN trade.
  • The EU is by far the largest investor in ASEAN countries. (FDI) stocks into ASEAN accounted for € 263 billion.
  • Although a more recent phenomenon, ASEAN investment in Europe has also been growing steadily and to a total stock of over € 116 billion in 2016.

EU / ASEAN CROSS-BORDER ALTERNATIVE DEBT CAPITAL OPPORTUNITIES FOR SMEs

EU / ASEAN Small and medium enterprises (SMEs) are increasingly looking to obtain debt financing from non-bank lenders

  • Part of this trend is explained by the decreasing supply of credit in that space by commercial banks who face increasingly onerous capital requirements on loans perceived as risky by regulators and supervisors.
  • On the demand side, borrowers expect faster approval times and lower collateral requirements than afforded by banks’ traditional processes and systems. These conflicting trends open up a space for non-bank actors to provide growth financing to SMEs on simpler and faster terms.
  • In parallel, sophisticated institutional investors are becoming more familiar with the concept of providing growth financing to SMEs in return for higher yields than are available in the public markets.
  • As a result,SMEs are struggling to find the necessary funding as banks continue to deleverage, strengthen their balance sheets to comply with new rules and regulations and reduce the number of loans being made to the market

We provide private capital (mezzanine, RBF) for private investment pre / post IPO opportunities for SMEs

  • Alliance & Compliance group is acting as Match Maker on both sides (i) “buy-side” to leading EU LPs or Institutional Investors e.g. GPs, Hedge Funds, Family offices..; and (ii) “sell-side” directly to ASEAN eligible SMEs
  • We are focusing on direct lending Mezzanine loans and Results Based Financing (RBF) solutions to small companies
  • We structure and arrange innovative Late-Stage / Pre-IPO and Post-IPO financing packages which address the various needs of business owners to accelerate their development and create more value for them and for our investors.
  • We are positioned as an intermediate provider of Mezzanine debt capital and Results Based Financing (RBF) funding, our consulting activities complement, rather than compete with, the financing provided by senior lenders and equity investors.


EU / ASEAN ALTERNATIVE FUND CROSS-DISTRIBUTION OPPORTUNITIES FOR FUND MANAGERS

We help to Build ASEAN-EURO cross-border Alternative Fund distribution channels

  • ASEAN /EU Alternative Investments such as Private Equity , Private debt, Hedge Funds, REIT... are particularly attractive to GPs and LPs firms, providing diversification to Institutional and HNWI investors.
  • According to a report from US-based Broadridge, assets under management in the Asian region total around USD 4.1 trillion making it the world’s third largest fund market, behind the US and Europe.
  • EU / ASEAN fund managers diversify their Alternative investment distribution program by seeking opportunities across buyout, growth and expansion, venture capital and special situation strategies.

EXAMPLES OF ALTERNATIVE INVESTMENTS

1. Private Equity

Private equity is equity, or ownership, not listed on a public exchange. Private equity firms raise funds from non-institutional and institutional investors and use that money to buy a business with the goal of later selling it to make a profit.

Depending on what stage the company is in, private equity investments can take on different forms, such as:

  • Venture capital: Funding used to help promising startup and early-stage ventures gain traction and achieve long-term success
  • Growth capital: An investment that enables mature companies to build out new product lines, expand to different geographies, or restructure the organization
  • Buyouts: Capital used to purchase another company or one of its divisions

2. Private Debt

When a company is looking to grow its business, it may not have the money or assets to expand. Instead, it might take on private debt, or receive a loan from a private debt fund, as an alternative to bank lending.

Firms that offer private debt typically make money off interest payments from the loan provided, as well as from the repayment of the loan itself. Private debt is illiquid and cannot be traded, yet can balance out a firm’s fixed-income investments.

3. Hedge Funds

A hedge fund is a pooled investment structure that uses different strategies to earn alpha, or an active return on investment. Hedge funds are exclusively for high-net-worth individuals and institutional investors and operate with much less regulatory oversight by the Regulators. Most hedge funds invest in traditional securities, such as stocks, bonds, and commodities.

A common hedge fund strategy is long/short equity lin which investors will take a long position, or buy, a stock they think will rise in value and take a short position, or sell, a stock expected to decline. The goal is to minimize the amount an investor can lose, while profiting from gains from the long position and price declines from the short position.

4. Real Estate

Real estate is typically known as an alternative when individuals buy property such as office buildings or residential apartments as an investment.

Real estate shares similar characteristics with bonds, in that landlords earn current cash flow from tenants, and equity, in that their goal is to increase the value of their property over time. Yet, an added benefit of real estate is that the market is less volatile than stocks and bonds.

Investors who don’t want to be landlords might put their money into a real estate investment trust (REIT). A REIT manager will invest their money in different properties, and then manage and collect rent on those properties. Investors will earn annual profits in the form of dividends, or a share in the properties’ profits.

We provide ASEAN-EURO customized cross-border Alternative Fund distribution channel' solutions

  • With the support of our " EU/ASEAN Financial ecosystem" we leverage on extensive business experience to introduce high quality alternative investment managers to both EU/ASEAN markets
  • For international investment managers, we provide support by designing customized cross-border marketing strategy for EU/ASEAN Alternative Financial Instruments to ensure effective fund- raising as well as post-investment communication with investors.
  • In addition to the cross-border fund placement consulting role, we contribute to the development of private asset investment business in EU/ASEAN by holding webinar sessions and other activities.
  • Our Alternative Fund's clients , prospects and contacts are mainly EU/ASEAN GPs , LPs and Financial Advisors, Private Banks, Retail Banks, Insurance, Companies
  • As EU/ASEAN Alternative Funds' distribution channels we are working with Retail Bank, Private Bank, Discretionary Investment Managers,Insurance, IFA/Advised, Platform/Supermarket, Funds of Funds , Institution/Corporate, Others

For International Alternative Investment Managers:

We provide customized support for fund-raising in EU/ASEAN

  • Support introduction to prospective investors and marketing support services
  • Extensive experience in alternative fund placement
  • Multi-faceted relationship with EU/ASEAN financial institutions and corporations

For EU/ASEAN Alternative Fund Institutional Investors:

We offer high value-added investment opportunities through introduction of alternative investment managers.

  • Introduction of high-quality international investment managers
  • Support and facilitate communication with investment managers, including post investment phases
  • Administrative support for starting investment
  • Manage Partnership Program with four key components:

(i) education for Limited Partners (“LPs”) on EU/ASEAN private equity markets, including Asia Alternatives’ own in-house market research;

(ii) access to fund managers (“GPs”) in Alternatives’ investment portfolio through transparent reporting and facilitating meetings between GPs and LPs;

(iii) providing opportunities to co-invest alongside of Asia Alternatives’ funds where appropriate;

(iv) best-practice reporting and dedicated, on-call client service support. Cross-border expertise