Private equity firms today operate in an increasingly uncertain environment. These firms need to identify future sector-specific growth trends for platform investments, appropriately evaluate bolt-on acquisition opportunities, create value through the right operational improvements and exit investments at the opportune time. Although there has been increased fund raising in Asia since the 2010 post-crisis low, private equity firms face challenges such as personal relationships for sourcing acquisitions, lack of transparency into portfolio company operations, establishing trust with company management and navigating regulatory reforms. Additionally, intrinsic risks in the region's economies vary significantly between China, India, Korea and Indonesia. In the Middle-East, sovereign wealth funds are increasingly looking to deploy capital into the private equity industry. However the industry needs to understand a sovereign wealth fund's balance between shareholder returns and development objectives of their home economies.
Cedar has been working with leading global and regional private equity firms in the following areas:
• Fund strategy including sector specialization and geographic diversification
• Deal generation and investment thesis
• Due diligence and post-acquisition agenda
• Ongoing value creation through revenue enhancement and cost rationalization
• Optimal exit strategy
We recognize that work in this area requires speed, and an ability to look at issues from an investor, general partner and portfolio company management perspective. We also recognize that speed comes from deep insights and knowledge of the industry or geography that is been targeted, and Cedar depth across a number of sectors and geographies is significant. We would be happy to share with you our experience and expertise in detail.