1. Which companies ASEAN Late-Stage / Pre-IPO shares are available?

At any given point of time, there are a number of ASEAN SME’s companies who wants to to raise capital and knew the share price and volume available from various investors including EU GPs and LPs.; before to undergo an IPO.

2. What is the meaning of Pre-IPO shares ?

Pre-IPO means buying/selling shares in a ASEAN unlisted company before its IPO i.e. before it gets listed on one of the ASEAN Stock Exchange.

3.Who sells shares in a pre-IPO, why someone is selling shares and how it will reflect in your account ?

Existing ASEAN SME’shareholders of the Company or VC portfolios sell shares in the pre-IPO in demat form. Such Shares are sold mainly because existing shareholders need the money which they can use either for expenses or investments. Once transferred, shares will reflect in your portfolio.

4.Why do I buy in a pre IPO?

Most of the ASEAN IPOs today are meant to provide exits to existing shareholders . As such, IPOs are are priced expensive and even at those valuations, retail investors do not get allotment. Most of the times good IPO’s are highly oversubscribed in retail category thus limiting the allotment size even if retail investor is lucky.

Investing in pre-IPO helps the EU investor:

• • • To participate in the growth of the company.

    • Get opportunities which otherwise would ONLY be available to ASEAN entities like PE Firms etc

    • Purchase the pre-IPO shares well below the IPO price and gets the maximum benefit.

    • Get in at reasonable valuations.

    • ·When rated company, to have the possibility to get liquidity trough local or foreign market maker.

5. What is the kind of time horizon is involved in investing in Pre-IPOS?

Most pre-IPOs take at least 1 year to get listed as it involves taking shareholder approval,getting internal processes in order,hiring underwriter, filing regulatory requirements, getting Regualtor’s approvals etc

6. What are the kinds of risks involved in investing in pre-IPO?

Do consider following risks before investing

• The Company may execute poorly and the Company’s results falter after you buy (also True for listed stocks)

• The Company takes longer than expected to get listed due to various reasons. There is no commitment from our side on the timelines of listing of such companies

• Unlisted shares are inherently illiquid and you may not be able to sell your shares in a hurry when you need the money.

• Unlisted shares prices fall down based on supply/demand in future and may fall down significantly from your buying price(also True for listed stocks)

1. What is a Private Equity Investment?

A private equity fund is a collective investment scheme used for making investments in various equities and debt instruments. One key feature of private equity funds is that the money which is pooled in for the purpose of fund investment is not traded in the stock market and is not open to every individual for subscription.

2. What does a private equity fund do?

Private equity firms raise funds from institutions and wealthy individuals and then invest that money in buying and selling businesses. After raising a specified amount, a fund will close to new investors; each fund is liquidated, selling all its businesses, within a preset time frame, usually no more than ten years

3. How is a Private Equity Fund structured?

The private equity fund structure is typically made up of limited partners (LPs) and general partners (GPs). The LPs are the outside investors who provide the capital and typically consist of institutional investors such as insurance companies, endowment funds, foundations, banks, retirement / pension funds, family investment offices as well as high net worth individuals. GPs are the professional investors who manage the private equity fund and deploy the pool of capital. Most private equity funds are organized as limited partnerships or limited liability companies.

4. What is the difference between private equity and venture capital?

Private equity firms mostly buy mature companies that are already established while Venture capital firms, on the other hand, mostly invest in startups with high growth potential. Also, Private equity funds buy 100% ownership of the companies in which they invest, while Venture capital funds invest in 50% or less of the equity of the companies.

5. What is an LP in private equity?

1. A private equity firm is called a general partner (GP) and its investors that commit capital are called limited partners (LPs). Limited partners generally consist of pension funds, institutional accounts and wealthy individuals.

6. What is MOIC in private equity?

1. MOIC is a helpful measure to assess private equity performance. It can be thought of as the Total Value to Paid-in Capital. Multiple on Invested Capital (multiple or MOIC). Absolute gains are typically measured as a Multiple on Invested Capital (MOIC).

7. How do private equity firms add value?

Private equity adds value to a company in a variety of ways. Thorough due diligence sheds light on a company’s strengths and weaknesses alike, and with it comes a sound initial investment rationale. By targeting growth sectors and new markets, private equity investors can focus on creating better revenue generation and implementing programmes that yield operational efficiencies. In addition to cost reduction, organic growth is now increasing in importance as growth by acquisition is becoming relatively harder to undertake.