The Riverside Company has opened a Singapore office and will now include Southeast Asia and Greater China in its Asia investment strategy, co-chief executive of the firm Béla Szigethy revealed to Private Equity International. He said the firm is responding to its existing and potential LPs' calls for exposure to certain Asian markets, in particular Southeast Asia.
“[We] are taking a hard look at Malaysia and Indonesia, in addition to Singapore,” Szigethy said.
In addition, the firm has had a Hong Kong office from which and it now intends to look for opportunities in China and Taiwan.
The Singapore office employs two full-time professionals to help source deals in Southeast Asia. Szigethy admits the firm is new to the region, but is not put off by the high asset valuations in countries like Indonesia and Malaysia.
Previously the firm invested only in the more developed economies in Asia-Pacific such as Australia, Japan and Korea.
“If we’re going to be in Asia, we’re not going to just stay in these mature economies when there is all this growth
[We] are taking a hard look at Malaysia and Indonesia, in addition to Singapore.
Riverside is a mid-market firm that focuses on healthcare, education, consumer products and manufacturing, among other sectors. It invests in businesses worldwide with EBITDA of approximately $5 to $25 million, which will be the same when investing in developing countries in Asia.
Currently, it is raising a $150 million Asia fund – its second in the region, which had a first close on $70 million before the end of 2012, according to PEI’s Research & Analytics division.