Transpac’s geographical focus is on East Asia (excluding Japan), with special emphasis on China, Hong Kong, Indonesia, Malaysia, Singapore, the Philippines, Taiwan and Thailand. Future focus will include India and Indochina.
Transpac invests in companies at all stages of development, from start-up to growth capital and buyout. Most investments, however, are in high growth, profitable companies with a proven track record.
Investments in individual companies can range from US$1 million to US$50 million, although most investments now exceed US$10 million.
All Transpac investments involve equity participation, although they may take the form of convertible debt or a combination of debt and equity. All investments are long term in nature (normally 3 to 7 years). Transpac usually takes a lead position in portfolio companies, including being the majority shareholder where appropriate.
When considering investment in a company, Transpac looks for:
– Management integrity, ability and experience
– Market size and growth potential
– Product quality and/or development capability
– Strategic match of product, production environment and market
– Clear exit opportunities.
Transpac is generally represented on the board of directors of portfolio companies. Board representation permits Transpac to keep informed as to the company’s needs, and gives the portfolio company direct access to the resources of Transpac Capital. Transpac does not get involved in the day-to-day management of portfolio companies except where required. It believes in backing strong management teams that require little outside supervision.
Transpac Capital is an active investor, working with portfolio companies to advance their growth and other goals. In addition to providing capital, Transpac is in a position to assist portfolio companies in a number of ways, including:
– Financial and strategic planning
– Recruitment of key personnel
– Obtaining bank and other debt financing
– Access to international markets and technology and to strategic partners or acquisitions
– Assisting in formulating strategies during changes both in market conditions as well as in government policies and regulations in the region
– Regional expansion of manufacturing and marketing operations
– Negotiating and executing mergers and acquisitions
– Obtaining a public listing
Transpac’s capital and other support can further the goals of the following types of companies and their owners:
– Profitable companies seeking to accelerate
– Growth and expand geographically
– Start-up and early stage companies seeking to commercialize outstanding marketing concepts and technological innovations
– Established companies seeking to form joint ventures in the region
– Management buyouts and buyins
Transpac is also in a position to create linkages between portfolio companies and its own corporate and institutional investors by inviting these investors to co-invest where appropriate. Such co-investment can both further the development of portfolio companies and give Transpac investors from outside the region a first hand view of Asian business.
