Latest news with #NicholasCheng
Business Times
3 days ago
- Business
- Business Times
Shifting appetite among Asia's rich could lift investments in alternative assets
[SINGAPORE] More of Asia's richest are viewing private-market investments as a core part of their portfolios, say senior private bankers. With allocations ranging from the single digits up to 15 per cent of their portfolios to the asset class, this could translate to as much as US$1.5 million per investor. If this trend continues, the total assets under management (AUM) in private markets by individuals, each with a net worth of US$10 million, could hit US$1.39 trillion in Asia by 2028, going by a back-of-the-envelope estimate by The Business Times. The sum was derived from Knight Frank's 2025 Wealth Report, which forecasts the number of these wealthy Asia-based individuals to grow to 928,722 in 2028. The report noted that this group stood at 854,465 in 2024, meaning that as much as US$1.28 trillion could be invested in alternative assets . Alternative assets, which comprise private-market investments in equity, credit, real estate and infrastructure, have traditionally been the domain of institutional investors such as pension funds, but rich retail investors are now wanting a piece of the action. As such assets are less liquid and transparent than publicly traded assets such as stocks and bonds, countries generally impose guard rails to restrict the access that retail investors have to these private assets. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In Singapore, investors who are not private-banking clients – but whose investable assets range from S$5 million at DBS and UOB to US$10 million at Standard Chartered – would generally need to be accredited investors to invest in such instruments. Nicholas Cheng, head of private markets group at Standard Chartered Global Private Bank, told BT that there is a clear trend of private-banking clients in Asia allocating more to alternative assets over the past five years. 'Previously, private-market investments might have been seen as opportunistic, 'nice-to-have' additions. Now, they are increasingly viewed as core, strategic components of a well-diversified portfolio. Clients are actively building long-term allocations, understanding the role these assets play in their overall wealth strategy.' In general, StanChart's private-banking clients allocate 15 per cent of their portfolios to such assets. Diversifying away from public markets Such investors find alternative assets appealing because these instruments allow them to diversify away from equities, which can be volatile in times of uncertainty. In addition, Asia's rich want to increase their exposure to private companies, which may want to stay that way. Chee Jiun Wen, head of alternative investments at Bank of Singapore, said: 'As companies stay private for longer, investors seek alpha generation, and as the emphasis on portfolio diversification grows, we believe opportunities and access to alternative investments should only continue to expand for our clients.' Hamilton Lane, one of the world's biggest private-market investment firms with more than US$958 billion in AUM and supervision, said that 87 per cent of US companies with revenues exceeding US$100 million were private as at early-2022 – and this was just the year following 2021, a record year for initial public offerings, when companies raised US$316.6 billion on US bourses. Private-banking clients are also comfortable with the illiquidity premium that alternative assets offer. This is the premium that these investments offer to investors, to entice them away from publicly traded, more-liquid instruments. Mathieu Forcioli, global and Asia-Pacific regional head of alternatives, wealth and premier solutions at HSBC, said: 'Private-market investing introduces an element of illiquidity in an investment portfolio. Over the past years, our clients have been assessing the amount of illiquidity risk they can take, and have been able to invest outside publicly traded instruments, with the aim of improving the risk/return profile of their portfolio.' HSBC recommends an 11 per cent allocation to alternative assets for those with medium-risk portfolios. As Asia's rich become more familiar and comfortable with investing in alternative assets, they are likely to continue raising their exposure, market observers said. Investing more in alternative assets The private banks that BT approached say their clients' AUM in alternative assets has grown strongly in the past few years. Declining to go into specifics, UOB reported that the figure jumped more than five times between January 2023 and May 2025. At Bank of Singapore, the inflows to alternative investments surged more than 80 per cent in 2024 from the year prior. The Monetary Authority of Singapore's latest annual survey of the local asset-management industry showed the total AUM in alternatives hit nearly S$1.39 trillion in 2024, up 14 per cent from 2023. In private equity and venture capital, the biggest component, AUM rose 20 per cent to S$789 billion. With increasing sophistication in alternative assets, UOB Private Bank's clients are diversifying within private markets. Wong Meng Keet, head of managed products and alternative investments at UOB Private Bank, said: 'Previously, clients interested in alternatives would typically have a combination of investments in hedge funds and private equity. Today, they are spreading their investments across a wider range of options, and it is not unusual for clients to have a combination of private equity, private credit, private real estate and private infrastructure.' Banks are launching more products to cater to the expanding appetite, including the so-called semi-liquid funds that offer periodic redemption opportunities. As open-ended funds that provide ongoing access, investors can stay invested for as long as they choose. They are more palatable to retail investors, compared to the closed-ended funds that cater largely to institutional investors with deeper pockets and longer investment horizons. US$50 million ticket size On the higher end of the wealth spectrum, DBS Private Bank and Hamilton Lane launched a product in June catering to the bank's ultra-high-net-worth (UHNW) clients and family offices. With a minimum ticket size of US$50 million, each of these clients can set up a portfolio of private-asset investments tailored by Hamilton Lane, in its first such partnership with DBS. The product has 'garnered strong interest' among DBS' clients since its launch. The bank signed a mandate with a family office where the chief investment officer hails from a commodities trading background and is 'relatively unfamiliar' with investing in private assets, DBS told BT. Kerrine Koh, head of South-east Asia at Hamilton Lane, said the partnership sprung from the firm's observation that UHNW investors often have 'unique objectives, risk tolerance and risk preferences', and that off-the-shelf products may not meet these needs. On the opposite end of the spectrum, accredited investors who are not private-banking clients can access alternative assets at StanChart and OCBC. These are individuals with net personal assets of more than S$2 million, or with an annual income of S$300,000. Priority banking clients at Stanchart with at least S$200,000 in deposits and who are accredited investors in Singapore can make investments in private-market funds. These include a European private-credit fund that the bank launched in February. Accredited investors at OCBC have three private-market funds to choose from. The bank started offering the Blackstone Private Credit Fund in 2022, and added the Apollo Aligned Alternatives Fund this year. This month, the bank added a private-credit fund with a Singapore-dollar share class for the first time, to cater to those who prefer to invest in the local currency, he added. Strong interest in these products 'propelled our private-market funds' AUM 2.5 times in one year', said Timothy Liew, head of investments at OCBC.
Business Times
05-08-2025
- Business
- Business Times
Fight for private equity talent in Asia heats up
[SINGAPORE] The recent furore between US banking giants and private equity (PE) firms over the poaching of junior analysts from the banks has brought renewed focus to an ongoing practice. In Asia, the battle for talent is hotting up as PE managers are under pressure to deploy US$260 billion in dry powder . In key Asian financial hubs such as Hong Kong and Singapore, the situation is less cut-throat, market participants say. Recruiters and executives at three of the biggest American private capital companies told The Business Times that while there are instances of PE firms hiring bankers, the circumstances are different for every market. In particular, the making of future-dated offers to junior investment banking analysts and associates is not as common as in the US. The practice of PE companies extending offers to junior investment banking analysts – even those who have not started working at the banks – led to a backlash. Citigroup, JPMorgan Chase and Goldman Sachs recently told their newly hired investment banking analysts to disclose if they had already accepted job offers from elsewhere. Market players in Hong Kong and Singapore said there is less pressure to recruit junior staff en masse as the PE operations here are more compact. Given that PE firms are generally leaner than banks, their teams in Asian hubs are even smaller compared with those in the US, which is home to the world's largest PE market. For instance, Blackstone, the world's biggest alternative asset manager, employed 4,895 staff globally as at 2024, compared with more than 300,000 at the largest US bank, JPMorgan. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Of the three big US PE firms that BT spoke to, only one said it prefers to hire those with at least three to five years of investment banking experience, so they can hit the ground running. All spoke on condition of anonymity, given the topic's sensitivity in a tight-knit sector. Two of them say they prefer to hire directly from the top business schools and train new associates, with the focus on retention with attractive compensation and clear career paths. 'The bigger shops don't have the time to train people up,' said an executive from a big US-listed PE firm. That is why investment banks could provide a good place for PE firms to hire, particularly for the larger funds in South-east Asia, because junior investment bankers or analysts would have already worked on a lot of financial modelling, considered grunt work at PE firms. It is a point that some recruiters concur with. Standard Chartered is one bank seeing 'strong market demand' for its staff, particularly in Hong Kong and Singapore. 'Undeniable global trend' Nicholas Cheng, head of private markets at Standard Chartered Global Private Bank, said: 'It's an undeniable global trend that PE and other private market firms, with their often different compensation structures and work environments, have become very attractive to junior talent, especially analysts, from traditional investment banking and financial services.' While StanChart's overall retention rate is good, it views the 'competitive talent landscape' as an industry-wide challenge. He added that StanChart is actively recruiting from top-tier universities, particularly graduates with strong analytical skills. Banks have always had to work to keep their staff from being poached by PE firms. Transitioning to PE from investment banking 'is seen as a natural progression due to the significant overlap in skills, like financial modelling and deal execution', said Lim Chai Leng, general manager for banking and financial services at Randstad. PE roles are particularly attractive, given the opportunities for new skills to conduct in-depth research, as well as long-term and greater strategic ownership over portfolio management. The more attractive compensation packages and better work flexibility also draw talent to PE, she added. Data from Robert Walters shows that the total compensations for all positions in PE firms are generally higher than those at investment banks in Singapore. An analyst at a PE firm could draw an annual salary of between S$90,000 and S$130,000, compared with S$80,000 to S$110,000 at an investment bank. When bonuses are included, the PE analyst could see total pay go up to as high as S$180,000, versus S$160,000 at a bank. The gap widens for the more senior roles, with a managing director at a PE firm drawing more than S$1 million after factoring in bonuses. Being heavily performance-based, carry – or a share of profits when returns from the PE funds exceed a certain level – becomes more significant from the vice-president level. '(The) banking-to-PE talent migration is a clear and ongoing trend throughout South-east Asia, with Singapore leading,' said Serena Fernando, senior consultant for banking and financial services at Robert Walters Singapore. PE firms have been hiring a mix of junior and senior staff in South-east Asia, particularly this year, as a delay in the expected recovery in deal activity is creating extra pressure for the companies to deploy capital and deliver returns, said Fernando. This makes having 'effective deal teams – and strong talent – critical', she added. Pressure to deploy Globally, the amount of dry powder available – referring to the capital that PE fund managers have raised but not yet deployed – is US$1.2 trillion, with about US$260 billion in the Asia-Pacific, figures from Bain & Co indicated. With the pressure to hunt for deals and deploy the dry powder, Fernando said there is strong demand for senior bankers in PE. 'As deal complexity increases – especially in carve-outs, tech-driven transactions and public-to-private deals – PE firms are seeking experienced leaders who can drive executive and add strategic value.' This could give investment bankers an edge for senior PE roles, as typically the executives at these levels would need to demonstrate not just dealmaking skills but also others, such as the ability to run portfolio companies. Sixth Street, a San Francisco-based global investment firm with over US$60 billion in assets under management and committed capital, last month announced it hired Stuart Wrigley from Goldman Sachs to head its Asia-Pacific business. He will also lead its new Singapore office, which is slated to open in October 2025.
CNBC
24-07-2025
- Business
- CNBC
Private credit giants turn to Asia as funding gap widens in region
The private credit industry is ramping up its focus on Asia-Pacific, drawn by a combination of evolving capital markets and expanding funding gaps as traditional bank lending pulls back. The region is also fast emerging as a focal point for private credit investors seeking fresh opportunities outside of the more saturated markets of the U.S. and Europe, industry experts told CNBC. "Asia is undeniably emerging as a significant private credit growth hotspot," said Nicholas Cheng, head of the private markets group at Standard Chartered Global Private Bank. "The growing funding gap, rapid economic growth, increased sophistication of borrowers, and evolving regulations make it fertile ground." Data supports the rapid growth. Private credit assets under management (AUM) in Asia rose from virtually zero in 2000 to $62.3 billion in the first quarter of 2024, the latest data provided by Pitchbook showed. That expansion has accelerated particularly in recent years, with AUM more than doubling from $34.3 billion in 2017 to over $62 billion in 2024. Global players have also expanded their presence across Asia's credit markets. Apollo Global Management was recently selected to manage Singapore's $1 billion private credit fund, which is aimed at supporting high-growth local businesses. Hillhouse Investment is reportedly looking into deploying between $1 billion and $2 billion each year in Japan, as well as aiming to roughly double its headcount in the country. Evolving regulatory landscapes and global investors' search for higher yields are pushing more capital into Asia's still-nascent but fast-growing private credit markets. While banks dominate credit provision in Asia far more than in Western markets — accounting for about 79% of lending compared with 54% in Europe and just 33% in the U.S., according to investment firm KKR — that dynamic is shifting. Private credit is stepping in to fill a widening funding gap, particularly for mid-market companies. "As these countries continue to develop, so too does the number of mid-sized companies that may have difficulties accessing traditional bank financing, opening the door for private credit to service this market," said Kyle Walters, private equity analyst at PitchBook. On top of that, he foresees that as Western markets mature, more capital will shift to Asia. "As mature regions like the U.S. potentially start to cap out, you'll see more PE and private credit managers looking at Asia as an opportunity." The growth of private credit in Asia has accelerated significantly in recent years, especially after the region's high-yield public bond markets faltered amid a wave of defaults and investor caution, JPMorgan said. "Over the last three years, the public high-yield market almost closed," noted Serene Chen, a managing director at JPMorgan. "That accelerated the development of private credit in Asia, as companies still needed refinancing options." Private credit funds seized the opportunity to step in with bespoke, complex financing solutions, often targeting companies locked out of traditional funding channels. "Asia's driving over 50% of world GDP growth, but public debt markets remain underdeveloped," Chen added, highlighting a structural gap that private credit is increasingly filling. Interest spans geographies and sectors. India and Southeast Asia are drawing significant capital, thanks to their strong economic growth and burgeoning middle classes, private credit veterans said. Singapore remains a key financial hub, while Indonesia and Vietnam are becoming magnets for capital, said Standard Chartered's Cheng. In mature economies such as Japan and South Korea, banking systems remain dominant, but opportunities can be found in mid-market segments, according to analysts. Japan is known for its robust banking system, so it may not have the upside of other countries, PitchBook's Walters noted. "Still, it does present a country with a stable economy and high quality of credit, two attractive features to lenders," he said. South Korea, likewise, has a robust banking system, but it has the ability to capture a share of middle market activity, as seen in the U.S. and Europe, Walters added. China, despite economic headwinds, still presents pockets of opportunity, particularly as banks there deleverage. KKR's head of Asia credit and markets, Diane Raposio, told CNBC that the private equity company is taking a "highly disciplined approach" in China, focusing on companies with robust cash flows and durable balance sheets. Australia, meanwhile, appeals to more sophisticated strategies given its mature legal framework and strong corporate activity, Standard Chartered said. Sector-wise, infrastructure, technology and renewable energy are major themes. "Infrastructure has been a very big sector because in Asia, especially in emerging market Asia, you still need to build a lot of renewable energy, you still need to build toll roads and you need to build data centers," said Eddie Ong, deputy CIO and head of private investments at SeaTown Holdings International, who added that SeaTown is targeting opportunities in India, Australia and Hong Kong. Similarly, JPMorgan's Chen pointed out the huge demand for renewable energy, toll roads, and data centers in emerging markets. But despite the optimism, Asia's patchwork of jurisdictions presents risks for private credit investors — namely, currency fluctuations, legal enforcement issues, regulatory uncertainty, and lack of transparency in some markets — all of which can complicate deals and undermine returns. "Legal and regulatory environments vary significantly, making loan enforcement and collateral perfection challenging," Cheng said. "Transparency and standardized reporting also lag more developed markets." PitchBook's Walters said lenders and investors will need to create buffers for currency risks, with volatile foreign exchange markets adding another layer of complexity. Those are often managed through hedging strategies that add costs, he said. Nevertheless, though the region's credit markets are less mature and more fragmented than those in the U.S. or Europe, KKR's Raposia sees a "significant trajectory" ahead for the private credit industry in Asia. Although the region accounts for nearly 60% of global gross domestic product growth, less than 5% of local financial assets are allocated to credit, compared with nearly 30% in Europe, she said. "This suggests a private credit market with room to grow by an estimated $700 billion," she added. Standard Chartered's Cheng similarly expects the market to continue growing at a "sustained double-digit percentage rate annually" for the foreseeable future, driven by the persistent funding gaps and growing acceptance of private credit as a viable financing tool.
Zawya
22-04-2025
- Business
- Zawya
WRISE Group launches WRISE Capital to bolster Corporate Advisory Services
New business unit leverages the Group's acquisition of Elstone Capital enabling the Group to deliver corporate finance and financial advisory services HONG KONG SAR - Media OutReach Newswire - 22 April 2025 - WRISE Group today announced the launch of WRISE Capital, a new core business unit that specialises in comprehensive corporate finance and advisory services for listed companies, private and institutional clients. This strategic expansion follows the acquisition of Elstone Capital, a licensed financial advisory firm in Hong Kong managing deals such as IPOs, takeovers, privatisations and listing transfers. WRISE Capital will operate from Hong Kong, serving clients globally. Alongside WRISE Private and WRISE Prestige, WRISE Capital will serve as one of the three core business units in WRISE Group, solidifying the company's position as a comprehensive financial services provider for ultra-high and high-net-worth clients. This move strategically allows WRISE Group to capitalise on the unprecedented growth in Asia's dealmaking landscape which saw strategic mergers and acquisitions (M&A) growth of 20% (US$666 billion) in Asia alone, overshadowing counterparts such as North America (2%) and Europe (9%). "The acquisition of Elstone Capital and the formation of WRISE Capital represents a significant milestone in our Group's strategy to provide a comprehensive 360-degree wealth ecosystem for clients," said Derrick Tan, Executive Chairman, WRISE Group. "With a rich history of successful transactions and a deep understanding of global financial markets, Elstone Capital's expertise aligns perfectly with WRISE Group's commitment to providing clients with tailored strategies across key global financial hubs. As investors and businesses seek financial advice today's dynamic market, WRISE Capital will continue to extend strategic expertise and innovative solutions to our clients," he adds. Headed by newly appointed CEO, Nicholas Cheng, WRISE Capital will provide a full range of corporate finance and advisory services, including M&A and takeovers advisory, Initial Public Offering (IPO) sponsorship and preparation, post-listing and compliance advisory services for Hong Kong listed companies. "We are excited to join WRISE Group by providing collective expertise for seamless delivery of world-class corporate finance and advisory services," said Nicholas Cheng, CEO of WRISE Capital. "Our team's extensive experience, honed through years of navigating complex mergers, acquisitions, IPOs and other financial transactions, will translate into significant value creation for WRISE's global clientele as they navigate evolving market landscapes to achieve long-term strategic success." WRISE Capital's management team will also include Alan Au-Yeung, Chief Strategic Officer and Fanny Lee, Chief Operating Officer. Both executives each have over 20 years of experience across corporate finance and compliance advisory services. Hashtag: #WRISE The issuer is solely responsible for the content of this announcement. WRISE WRISE is one of Asia's fastest-growing financial firms, driven by strategic acquisitions of companies with deep expertise and solid foundations. With a strong presence across key financial hubs including Singapore, Dubai, Hong Kong, Shanghai, Shenzhen and Tokyo, WRISE is home to one of the largest network of independent qualified advisors. With over 400 employees located globally, supported by an ecosystem of over 200 financial intermediaries and access to eight booking centres worldwide, WRISE ensures unparalleled service and expertise in navigating today's financial landscape. WRISE Group of companies include WRISE Wealth Management (Singapore), WRISE Wealth Management (Hong Kong), WRISE Wealth Management Middle East Ltd (DIFC, regulated by the DFSA), WeWrise Services, and affiliated companies WRISE Prestige Securities (Hong Kong), WRISE Prestige Asset Management (Hong Kong) and WRISE Financial Services (Hong Kong). WRISE
Malay Mail
22-04-2025
- Business
- Malay Mail
WRISE Group launches WRISE Capital to bolster Corporate Advisory Services
New business unit leverages the Group's acquisition of Elstone Capital enabling the Group to deliver corporate finance and financial advisory services HONG KONG SAR - Media OutReach Neswire - 22 April 2025 - WRISE Group today announced the launch of WRISE Capital, a new core business unit that specialises in comprehensive corporate finance and advisory services for listed companies, private and institutional clients. This strategic expansion follows the acquisition of Elstone Capital, a licensed financial advisory firm in Hong Kong managing deals such as IPOs, takeovers, privatisations and listing transfers. WRISE Capital will operate from Hong Kong, serving clients WRISE Private and WRISE Prestige, WRISE Capital will serve as one of the three core business units in WRISE Group, solidifying the company's position as a comprehensive financial services provider for ultra-high and high-net-worth move strategically allows WRISE Group to capitalise on the unprecedented growth in Asia's dealmaking landscape which saw strategic mergers and acquisitions (M&A) growth of 20% (US$666 billion) in Asia alone, overshadowing counterparts such as North America (2%) and Europe (9%)."The acquisition of Elstone Capital and the formation of WRISE Capital represents a significant milestone in our Group's strategy to provide a comprehensive 360-degree wealth ecosystem for clients," said Derrick Tan, Executive Chairman, WRISE Group."With a rich history of successful transactions and a deep understanding of global financial markets, Elstone Capital's expertise aligns perfectly with WRISE Group's commitment to providing clients with tailored strategies across key global financial hubs. As investors and businesses seek financial advice today's dynamic market, WRISE Capital will continue to extend strategic expertise and innovative solutions to our clients," he by newly appointed CEO, Nicholas Cheng, WRISE Capital will provide a full range of corporate finance and advisory services, including M&A and takeovers advisory, Initial Public Offering (IPO) sponsorship and preparation, post-listing and compliance advisory services for Hong Kong listed companies."We are excited to join WRISE Group by providing collective expertise for seamless delivery of world-class corporate finance and advisory services," said Nicholas Cheng, CEO of WRISE Capital. "Our team's extensive experience, honed through years of navigating complex mergers, acquisitions, IPOs and other financial transactions, will translate into significant value creation for WRISE's global clientele as they navigate evolving market landscapes to achieve long-term strategic success."WRISE Capital's management team will also include Alan Au-Yeung, Chief Strategic Officer and Fanny Lee, Chief Operating Officer. Both executives each have over 20 years of experience across corporate finance and compliance advisory #WRISE The issuer is solely responsible for the content of this announcement. WRISE WRISE is one of Asia's fastest-growing financial firms, driven by strategic acquisitions of companies with deep expertise and solid foundations. With a strong presence across key financial hubs including Singapore, Dubai, Hong Kong, Shanghai, Shenzhen and Tokyo, WRISE is home to one of the largest network of independent qualified advisors. With over 400 employees located globally, supported by an ecosystem of over 200 financial intermediaries and access to eight booking centres worldwide, WRISE ensures unparalleled service and expertise in navigating today's financial landscape. WRISE Group of companies include WRISE Wealth Management (Singapore), WRISE Wealth Management (Hong Kong), WRISE Wealth Management Middle East Ltd (DIFC, regulated by the DFSA), WeWrise Services, and affiliated companies WRISE Prestige Securities (Hong Kong), WRISE Prestige Asset Management (Hong Kong) and WRISE Financial Services (Hong Kong).
