October // 2020
The Rising Post COVID-19 Opportunities in China and Southeast Asia Duncan Zheng Helen Chan Mathew Coleman Megan Zheng Head of Private Equity, Principal, Vice President, Associate, China Private Equity, Private Equity, Private Equity, Southeast Asia Southeast Asia China
Duncan joined Investcorp in 2020 Helen joined Investcorp’s private Matthew joined Investcorp in Megan Zheng joined Investcorp in from Nepoch/Pagoda in Beijing where equity Asia team in 2020, bringing 2017 via the acquisition of 3i Debt 2017 with 6 years of experience in he was Co-Managing Partner and led over 17 years of experience. Management, with 7 years of private equity. the firm’s buyouts in the healthcare experience. Previously, Helen was a director at Prior to joining Investcorp, she was sector as well as investments in China PwC London where she spent 13 years Prior to that, Matthew worked as an an M&A Associate in the Investment technology conglomerates including with the transaction services group, analyst and associate at Aberdeen Banking Division at Barclays. Alibaba, Meituan, Didi. with a focus on consumer deals and Standard Investments. Megan holds a Bachelor’s degree Duncan brings with him 19 years advising private equity clients. Prior Matthew holds a Master of Arts in in Accounting in Management of experience in private equity and to that, Helen spent 3 years with PwC International Relations and Modern from Tsinghua University, School investments. Toronto. History from the University of St of Economics and Management in Previously, Duncan worked as a Helen holds a bachelors of business Andrews and is a CFA Charterholder. Beijing, China, which included an Principal at Triton, the largest private administration (BBA) degree with exchange programme at the Wharton equity firm in Germany and served as first class honors from Simon Fraser School, University of Pennsylvania a Senior Advisor to China Investment University in Vancouver, Canada. in 2012. Corporation’s Global Private Markets She is also a qualified Chartered Department in Beijing. Accountant (Canada).
Prior to that, Duncan worked at Hicks Muse Tate & Furst, a US private equity firm, and in the Global Consumer & Healthcare Group at Salomon Smith Barney in New York.
Table of Contents 01 Knowledgeable Team with Access to the Local Market 02 Geographic Context 03 Synopsis
03 Opportunities in China 24 Opportunities in Southeast Asia 31 Conclusion THE RISING POST COVID-19 OPPORTUNITIES IN CHINA AND SOUTHEAST ASIA 1
KNOWLEDGEABLE TEAM WITH ACCESS TO THE LOCAL MARKET SUPPORTED BY INVESTCORP’S RENOWNED ASIA ADVISORY BOARD
Hazem Ben-Gacem Gregory So Fred Ma Co-Chief Executive Officer Investcorp Board Investcorp International Member Advisory Board Member
Savio Tung Walid Majdalani Investcorp Asia Senior Investcorp Head of Advisor Private Equity – MENA and Southeast Asia 2 INVESTCORP INVESTMENT INSIGHTS
GEOGRAPHIC CONTEXT
Greater China Southeast Asia
Country Population GDP per capita as of 2019
Greater China Beijing 22 million US $23,460 Tianjin 16 million US $12,910 Zhengzhou 10 million US $21,781 Shanghai 24 million US $22,468 Hangzhou 10 million US $21,781 Nanjing 9 million US $23,669 Ningbo 9 million US $20,451 Wuhan 11 million US $20,792 Xian 10 million US $13,179 Chengdu 17 million US $14,769 Chongqing 31 million US $10,833 Guangzhou 15 million US $22,347 Shenzhen 13 million US $29,070 Hong Kong 8 million US $48,756 Macau 0.7million US $84,096 THE RISING POST COVID-19 OPPORTUNITIES IN CHINA AND SOUTHEAST ASIA 3
Country Population GDP per capita as of 2019
Southeast Asia Singapore 6 million US $65,233 Indonesia 265 million US $4,135 Thailand 69 million US $7,808 Malaysia 33 million US $11,414 Vietnam 95 million US $2,715 The Philippines 107 million US $3,485
SYNOPSIS
In this inaugural paper from Investcorp’s Asia Private Equity Team based out of our Singapore office and our partner’s Beijing offices, we discuss how the fast adoption of new technologies in 5G, artificial intelligence, next generation healthcare and new consumerism, coupled with effective models of government, are generating attractive investment opportunities across China and Southeast Asia.
CHINA
Although China has become the 2nd largest economy in the world, its per capita nominal GDP is still only a sixth of that of the US, a quarter of that of Japan, and many healthcare, consumption and industrial per capita metrices are still a fraction of the developed economies, leaving ample room for sustained long-term growth.
2019 GDP per Capita (USD)