Altus Capital helps unlock potential of businesses
SOUTHEAST ASIA has become the darling of foreign investors and specialist investor Altus Capital Partners is playing matchmaker for businesses and dealmakers eyeing a piece of the action in the fast- growing region.
The rapid growth of the Philippine economy in the aftermath of the global financial crisis in 2008 has allowed Altus Capital to go from scouting for bad assets to helping unlock the potential of businesses.
“Where we fit in is we tend to look for the undervalued company that has a good product or service but we feel there’s something missing to it and I know somebody else who has a missing piece and we can come in and play a role in between,” Benjamin C. Sevilla, cofounder and co- managing director of Altus Capital, said in an interview.
Mr. Sevilla, backed by a stellar global career in banking and Internet technology, set up Altus Capital with seasoned fund and asset manager Pavan C. Gidwani in 2005 to do the heavy lifting for the “super investment bankers” looking for exposure in the Philippines.
The private equity firm initially advised on and managed distressed credit portfolios in the Philippines and then added single credit special situations and distressed real estate to its core competencies as the company grew.
Since then, Altus Capital has become the go- to partner of foreign institutional investors in the region because of its deep knowledge of the local market as well as its expertise in sourcing, due diligence, structuring and capital recovery.
Altus Capital cemented its place in the big league when the International Finance Corp., the private sector investment arm of the World Bank, bought a 15% stake in the private equity firm.
“I can sit at a table with the Zobels and the Pangilinans of the world pantay- pantay ( equal) with all the big players because the money is equal,” Mr. Sevilla said.
Altus Capital is following where the money is. After establishing a presence in Thailand last year, the firm plans to set up offices in Vietnam and Indonesia, as Philippine companies expand their footprint and foreign funds look to participate in the growth of Southeast Asia.
“There are mega funds with lots of money but it is too cumbersome for them to have boots on the ground so they’d rather outsource in a way so that you become boots on the ground,” Mr. Sevilla said.
Indonesia and Vietnam’s huge population, robust economies and their proximity to the Philippines make these destinations attractive for investment to local companies and Altus Capital.
“It’s just fascinating because they have something that we can use here,” Mr. Sevilla said.
With technology at the forefront of disruption, Altus Capital recognizes the inability of many companies in emerging markets to execute a digital strategy for their core businesses, prompting the company to start its digital private equity practice in 2016.
Altus Digital Capital ( ADC) is working closely with native digital companies and offline firms in need of a digital expression to boost earnings and build value through improved products and process as well as deeper customer relationships. The company also develops and incubates its own products and digital businesses.
“Change will be with us forever. Those who don’t embrace change are doomed to fail,” Mr. Sevilla said.
So far, ADC has assembled a portfolio comprised of iamClaire, a social commerce platform catering to millennial women; GoSPCE, the Airbnb for shared work and play spaces; and Foose, an emerging millennial hospitality brand.
“It is the mind that you use to create the opportunity. Once you think about it, it is endless,” Mr. Sevilla said.