Top Private Equity Firms Singapore: A Comprehensive Ranking for 2023
Singapore has emerged as a leading hub for private equity (PE) firms in the Asia-Pacific region, attracting foreign investors due to its political stability, strong legal framework, and business-friendly environment.
The country has seen significant growth in the PE market, with assets under management (AUM) in private equity and venture capital increasing by 54 percent and 49 percent to S$375 billion and S$16 billion, respectively, in recent years.
This surge in the PE market can be attributed to Singapore's diversified investment approach and its openness towards cross-border transactions.
The country has also developed a reputation for expertise in executing merger and acquisition deals, serving as a gateway for investments in Southeast Asia. Moreover, the flexibility of Singapore's private equity firms in investing across industries makes it an attractive destination for investors looking for growth opportunities.
The Asia-Pacific region's thriving economic landscape further sets the stage for Singapore's flourishing private equity sector.
Many international private equity giants, including Apollo Global Management LLC, Blackstone Group LP, Carlyle Group, and KKR & Company LP, have established a presence in the region to capitalise on its potential.
Emerging trends in financial services and fintech companies, healthcare, consumer goods, and technology sectors have caught the attention of private equity firms, leading to greater activity in these areas.
Singapore's strategic position in the Asia-Pacific region allows PE firms to tap into the vast potential of surrounding markets, making it a popular choice for those looking to expand and grow.
In conclusion, the landscape of private equity in Singapore is characterised by its strategic location, diverse investment opportunities, and a significant influx of top global firms.
This growth, coupled with Singapore's business-friendly outlook, has cemented the country's position as a leading financial centre in the Asia-Pacific region.
Top Private Equity Firms in Singapore Overview
Singapore boasts a thriving private equity industry with numerous reputable firms operating in the market.
These firms engage in investment activities, fund raising, portfolio management, and facilitate mergers and acquisitions. This article presents a concise overview of some of the top private equity firms in Singapore.
One of the prominent firms in the industry is Northstar Group, a Singapore-based private equity company responsible for managing more than US$2.5 billion in investments across Southeast Asia.
Northstar Group primarily focuses on high-growth, market-leading companies in the region, leveraging its vast experience and industry knowledge to support portfolio companies in accelerating growth and capturing market opportunities.
Another key player in the private equity space is KKR, a global investment firm with approximately $153 billion in assets under management. With a Singapore office, KKR actively invests in the Southeast Asian market across various sectors, including technology, retail, financial services, and healthcare.
Similarly, Oaktree Capital is a leading international private equity firm, managing around $122 billion in assets. By establishing its presence in Singapore, Oaktree Capital demonstrates a commitment to investing in the region's high-potential companies and working together with management teams to create value and drive growth.
Also, TPG Capital, with over $107 billion in assets under management, maintains a significant presence in Singapore, utilising its local knowledge and global expertise to forge strategic partnerships and execute successful investments in the region.
It is important to note that private equity firms operating in Singapore do not solely focus on one particular industry. Instead, these firms invest across various sectors, seeking to identify and partner with high-growth companies possessing strong fundamentals and promising market outlooks.
This approach enables private equity firms to diversify their portfolios, mitigate risks, and ensure long-term success in the competitive financial landscape.
Top Private Equity Firms Singapore Guide
Role of Venture Capital in Singapore
Venture capital plays a crucial role in the growth and development of Singapore's economy. It serves as a significant form of financial support for emerging businesses and small-scale enterprises seeking opportunities for expansion.
Venture capital investments in Singapore come from various sources, such as wealthy individuals, investment banks, and financial institutions1.
Singapore has positioned itself as a hub for venture capital investments in Southeast Asia, attracting investors and managers from around the world. This has contributed to the continuous expansion of its asset management industry2.
Several prominent private equity and venture capital firms have emerged in Singapore, focusing on investing in emerging markets and sectors with high growth potential. Some of these firms include 500 Startups, Sequoia Capital, and Monk's Hill Ventures, among others3.
These organisations actively seek out promising startups and small businesses, providing them with the necessary financial support, mentorship, and resources to achieve their full potential.
Investment in emerging markets, such as those in Southeast Asia, creates a ripple effect of innovation and entrepreneurship throughout the region.
This, in turn, strengthens the overall economy and fosters a culture of business growth and development. Venture capital investments help build a robust, diverse, and sustainable economic environment, with Singapore at the centre of this dynamic ecosystem4.
In conclusion, the role of venture capital in Singapore is not only vital for the individual businesses and startups that receive investment but also imperative for the overall economic growth and development of the country and the wider region.
Venture Capital in Singapore: What It Is, How It Works, and What You ... ↩
Singapore Private Equity and Venture Capital Landscape Series - A Brief ... ↩
Top 23 Venture Capital Firms and Angel Investors in Singapore ↩
SOUTHEAST ASIA PRIVATE EQUITY & VENTURE CAPITAL - svca.org.sg ↩
Key Deals and Profits in the Private Equity Singapore Sector
In the private equity sector, top firms in Singapore have been actively involved in several key deals, generating substantial profits for their investors.
A notable trend in recent years has been the increase in inward investments as global firms like Apollo Global Management, Blackstone Group, and Carlyle Group set up offices in the city-state to capitalise on the region's growth potential 1.
One of the major deals took place recently in the healthcare industry. Axiom Asia, a leading Singapore-based private equity firm, made a strategic investment in a local healthcare provider and achieved impressive returns on its investment 2. This highlights the growing interest of private equity firms in the healthcare sector in the region.
Another area of focus for private equity investments has been technology start-ups, leveraging the city's strategic location and robust infrastructure. For instance, a Singaporean private equity firm backed an innovative technology company, which eventually led to a successful exit through a merger and acquisition (M&A) deal.
This showcases the increasing interest of private equity firms in technology-based businesses.
In the financial services sector, private equity firms in Singapore have been instrumental in facilitating M&A transactions. The strong growth potential of these businesses has attracted significant investments, resulting in profitable exits for the investors.
The private equity landscape in Singapore has also seen a significant increase in add-on deals, particularly with businesses forming new platforms to leverage synergies and drive growth 3. Although these deals may be smaller in size, they have played a crucial role in boosting the overall performance of the private equity sector.
In summary, the private equity sector in Singapore continues to thrive, driven by key deals and healthy profits across a range of industries such as healthcare, technology, and financial services. The focus on strategic investments and M&A activities underscores the confidence and expertise of the top private equity firms operating in the city.
Top Private Equity Firms Singapore Guide
Private Equity Singapore Guide Footnotes
McKinsey Global Private Markets Review 2023 ↩
Significance of Growth Capital
Growth capital plays a crucial role in the development of businesses, providing them with the necessary funds for expansion and enabling them to seize new market opportunities.
Investors, particularly private equity firms, have increasingly recognised the importance of this type of capital as a means of generating significant returns while supporting the growth of the companies they invest in.
In Singapore, the private equity and venture capital sectors have witnessed remarkable growth, with assets under management (AUM) reaching S$555 billion as of June 2022, representing a 42% year-on-year growth rate.
This growth has attracted numerous private equity and venture capital fund management companies (FMCs), with 428 FMCs in Singapore by June 2022, a 27% increase since the beginning of 2021.
With the increasing number of investors and firms in the market, businesses in need of growth capital have a better chance of securing funding and obtaining the resources they need to expand their operations. Investors, in turn, can benefit from their investments as the companies they support grow and generate higher returns.
Moreover, the rise of family offices within Singapore has further highlighted the importance of growth capital in private wealth management. There has been a notable increase in the number of family offices in Singapore, growing from fewer than 100 five years ago to approximately 200 as of 2021.
These family offices often channel their investments into private equity and venture capital, seeking opportunities in growth-stage companies with the potential for high returns.
The growth of private equity and venture capital investments in Singapore has not only provided businesses with valuable growth capital but also contributed to the overall economy by supporting the creation of jobs and fostering innovation.
The thriving private equity landscape in Singapore presents attractive opportunities for both investors and businesses alike, solidifying its importance within the financial ecosystem.
Prominent Asian Markets
The Asia-Pacific region has been experiencing significant growth in the private equity sector, and Singapore is one of the leading countries that contribute to this development. Several prominent markets within the region, such as India, Indonesia, and Vietnam, have caught the attention of investors due to their rapid economic progress and vast potential.
India has emerged as a particularly attractive investment destination for private equity firms, given its large consumer base and expanding middle class. The country's rapidly growing sectors, such as technology and infrastructure development, have also provided fertile ground for investment opportunities.
Indonesia, the largest economy in Southeast Asia, presents a robust landscape for private equity investments. As a nation endowed with natural resources and a young, digitally adept population, it offers numerous prospects across different sectors like consumer goods, telecommunications, and renewable energy.
Meanwhile, Vietnam has been experiencing sustained growth, fuelled by its transition from an agriculture-based to a manufacturing-driven economy. Private equity firms have recognised the country's promising manufacturing and export-oriented industries, such as textiles and electronics, as lucrative opportunities for investment.
In the Asia-Pacific region as a whole, private equity has gained considerable momentum. According to a Bain & Company report, valuations in the industry have risen slightly year-on-year, driven by robust stock markets, increased competition, and record levels of unspent capital, also known as dry powder. This development highlights the growing significance of the regional markets in the global private equity landscape.
In summary, the private equity sector in the Asia-Pacific region is flourishing, with Singapore leading the charge and other prominent markets like India, Indonesia, and Vietnam following suit. This growth can be attributed to the combined factors of economic expansion, technological advancements, and untapped potential within these countries.
Top Private Equity Firms Singapore Guide
Valuation Perspectives in Singapore Private Equity
Private equity firms in Singapore, such as Northstar Group, play a significant role in investing substantial amounts across Southeast Asia, managing more than US$2.5 billion. These firms continually strive to create long-term value by adopting mature business processes and robust infrastructures, as highlighted in the 2022 Global Private Equity Survey.
Valuations and value creation are critical components of private equity investments. Accurate valuations help firms make informed decisions, thereby minimising risks associated with rising valuations. It is essential for investors to understand the nuances of private equity valuations and the factors affecting their returns.
The private equity sector experienced headwinds in 2022. Despite this, firms continued to seek opportunities for growth, taking advantage of record levels of dry powder, multiple capital strategies, and a strong focus on value creation.
Singapore reported a total of 482 mergers and acquisitions (M&A) deals, valued at US$59.2 billion, and 149 private equity/venture capital investments amounting to approximately US$5.2 billion between December 2019 and November 2020 source.
A confidence gap was observed between private equity and public markets in 2022. Private equity funds were down by about 10% through the first three quarters, while public markets finished the year down roughly 20%. Such discrepancies may lead to questions regarding the validity of private market marks. It is worth noting that this has occurred during similar periods in the past.
In summary, understanding the valuation perspectives in private equity is crucial for investors and firms alike. By adopting mature business processes and robust infrastructures, private equity firms in Singapore are positioning themselves for long-term strategic growth, considering the significance of valuations and value creation in their investments.
Private Equity Singapore in the Internet and Healthcare Sectors
Private equity investments play a significant role in the growth and development of various industries worldwide. In Singapore, there is a noticeable focus on the internet and healthcare sectors. This is due to their potential to drive economic growth, create job opportunities, and improve the overall well-being of the population.
One of the notable private equity firms in Singapore is the Northstar Group. They have invested more than US$2.5 billion in Southeast Asia, focusing on industries like the internet and healthcare. Their investment strategy has been geared towards companies with strong growth potential in these sectors.
In the internet sector, private equity firms like Northstar Group aim to invest in start-ups and established companies that show promise in terms of market penetration, user base expansion, and technological innovation.
By investing in these types of businesses, they hope to capitalise on the rapid growth of the internet industry in Singapore and throughout Southeast Asia.
On the other hand, the healthcare sector has also attracted significant interest from private equity investors in Singapore. This is largely due to the country's ageing population, rising healthcare costs, and the increasing demand for high-quality medical services.
To cater to this growing market, private equity firms seek to invest in healthcare providers that offer innovative and cost-effective solutions.
For instance, Manipal Hospitals, an Indian healthcare provider, has garnered over US$286 million in private equity investments in 2021. The company's success has inspired many Singaporean private equity investors to look for similar investment opportunities in the healthcare sector.
Apollo Hospitals, another healthcare provider, also secured over US$224 million in private equity investments in 2021, further demonstrating the growing interest in this sector.
In conclusion, it is evident that private equity investments in the internet and healthcare sectors in Singapore are on the rise. This trend is likely to continue in the coming years as these sectors remain key drivers of economic growth in the region.
It is the strategic focus of prominent private equity firms like Northstar Group and their investment in promising companies that will continue to shape the future of the internet and healthcare industries in Singapore and beyond.
Top Private Equity Firms Singapore Guide
Environmental, Social and Governance (ESG) in Private Equity Singapore
Private equity firms in Singapore are increasingly recognizing the importance of Environmental, Social, and Governance (ESG) factors in their investment strategies. ESG considerations allow firms to assess potential risks and long-term growth prospects, and contribute to sustainable investment practices.
This growing trend reflects a broader shift in the industry towards responsible investing.
Incorporating ESG factors into private equity decision-making requires firms to evaluate several key aspects. Environmental considerations typically include factors such as climate change, resource management, and pollution. Environmental concerns can have a significant impact on a company's reputation, operations, and regulatory compliance.
For example, companies with strong environmental management practices are more likely to mitigate risks associated with climate change, improve resource efficiency, and avoid costly regulatory penalties.
The social aspect of ESG focuses on employee well-being, diversity and inclusion, and community engagement. Private equity firms that prioritise social factors aim to create a positive work environment, leading to improved employee retention and productivity. Additionally, socially responsible companies often benefit from strong consumer support and improved brand reputation.
Good governance is another essential component of ESG considerations in private equity. Governance practices encompass factors such as board diversity, management remuneration structures, and shareholder rights. Companies with robust governance structures typically display greater transparency, accountability, and long-term stability, which can enhance investor confidence and attract capital.
While the private equity industry in Singapore has seen considerable growth and increasing ESG adoption, challenges remain in implementing ESG criteria consistently across portfolio companies. Standardising ESG reporting and establishing best practices are vital for investors to accurately assess and compare companies on relevant ESG factors.
In summary, the integration of environmental, social, and governance factors in private equity is taking hold in Singapore, as firms increasingly recognise the long-term value and risk mitigation provided by ESG-driven investments.
By embracing ESG principles, private equity firms can contribute to a more sustainable financial landscape and drive value for stakeholders.
Acquirers, Advisors and Investment Banks in Singapore Private Equity
In the realm of private equity, various entities play crucial roles in the ecosystem. These include acquirers, advisors, and investment banks. Their roles often intersect, facilitating fruitful collaborations in the industry.
This section sheds light on the contributions and characteristics of these entities in Singapore's private equity landscape.
Acquirers in the private equity context are firms that focus on acquiring stakes in companies to generate returns through either capital appreciation or dividends.
These firms typically have deep pockets and expertise in managing diverse portfolios. In Singapore, prominent private equity acquirers include Northstar Group and Everstone Group.
Advisors play a critical role in private equity transactions by providing guidance and support through their industry knowledge and networks. They assist both acquirers and target companies in navigating complex transactions, ensuring due diligence, and maximising value and returns.
In Singapore, advisory firms like PwC and Ernst & Young are key players in the private equity advisory space, offering valuable insights and bespoke solutions to clients.
Investment banks, on the other hand, facilitate financing, mergers, and acquisitions for private equity transactions. They often act as intermediaries between acquirers and target companies, utilising their vast networks to source deals and secure financing.
Singapore boasts a strong financial services sector, with top institutions such as DBS Group and Standard Chartered Bank possessing robust investment banking arms that cater to private equity transactions.
While these entities have distinct roles within the private equity landscape, their collaborative efforts contribute immensely to Singapore's thriving private equity scene. Their expertise, combined with favourable regulatory environments and a robust financial ecosystem, continues to make Singapore an attractive hub for private equity investments in Southeast Asia.
Top Private Equity Firms Singapore Guide
Frequently Asked Questions
What are the top private equity firms in Singapore?
The top private equity firms in Singapore include renowned names like Apollo Global Management LLC, Blackstone Group LP, Carlyle Group, and KKR & Company LP. These firms, among others, are actively contributing to the growth of the country's private equity landscape.
How do salaries in Singapore's private equity firms compare?
Salaries in Singapore's private equity firms can be competitive and vary depending on factors such as the firm's size, the level of responsibility, and professional experience. Typically, junior-level roles may receive annual remuneration packages ranging from S$80,000 to S$150,000, whereas more senior roles often earn upwards of S$150,000.
What are the typical entry-level roles in private equity firms in Singapore?
Entry-level roles in private equity firms in Singapore may include positions such as Investment Analyst, Associate, or Business Analyst. These roles involve conducting research, financial modeling, and supporting the investment process for potential deals, among other responsibilities.
Graduates aspiring to work in private equity usually possess degrees in finance, business, or economics, with relevant internships or work experience.
How can I get an internship at a private equity firm in Singapore?
Securing an internship at a private equity firm in Singapore typically involves researching reputable firms, networking with industry professionals, and applying directly via the firm's website or recruitment platform.
Strong academic credentials, relevant work experience, and a keen interest in the private equity sector can help increase your chances of landing an internship.
What is the difference between private equity and hedge funds in Singapore?
Although both private equity and hedge funds focus on generating returns for investors, they employ different strategies and investment approaches.
Private equity firms invest primarily in private companies or buyouts, seeking long-term value creation through restructuring, operational improvements, and growth strategies. On the other hand, hedge funds use diverse trading strategies and have a broader asset base, investing in public markets such as equities, bonds, derivatives, and commodities. Hedge funds usually have a shorter investment horizon, aiming for short to medium-term returns.
How does one break into the private equity industry in Singapore?
Breaking into the private equity industry in Singapore requires a combination of strong academic credentials, relevant work experience, and a robust network. Aspiring professionals often begin their careers in fields like investment banking, management consulting, or corporate finance before transitioning to private equity roles.
In addition to a solid foundation in finance and business, building relationships with industry professionals through networking events, seminars, and online platforms can enhance job prospects in the private equity sector.