Asian Investment Issues: Emerging Managers
I attended a recent Investment in China and India Summit hosted by Financial Research Associates I will use this forum to share some of the slide/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.
Many fund managers locally based in China and India are Em erging Managers with either little or no private equity experience
Performing Due Diligence on any Emerging Manager, even in developed markets, is inhere ntly more difficult than doing Due Diligence on fund managers
Issues that need to be focused on with any Emerging Manager include:
Team Stability – make sure everyone gets along
Economic Splits – know who gets how much and why
The “Emperor” Syndrome – know who is in charge
Appropriateness of Strategy – can you stick it out for the long haul
Impacts of Sponsorship – what happens if it is gone suddenly
Source: Probitas
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