Ericsenz redefines private equity
age partnerships to invest than you can’t get to positively impact the lives of many people by creating from jobs and employment.
That’s why I emphasise the point: surround yourself with not just smart people but smart people that are good and have humility.
As an investor I stay as neutral as possible, so I can invest in Uber and Grab and Go-Jek. We are not betting on just one major tycoon or technologist. We are betting on the sector and ecosystem.
You like founders who are very grounded. What if the founder was very talented but not too grounded, and slightly arrogant? Would you still invest in him?
Nine times out of 10 I have said no. If the guy ends up becoming an arrogant guy, or I don’t think he fits that basic requirement of being a decent human being, then I would not invest. Not that we are trying to be humanitarians or create a social impact fund, we are capitalists after all!
However, in today’s global ecosystem, if you have a egotistic or arrogant founder, one way or another, he is going to face a bumpy road down the line, either in partnerships or losing investors.
It is natural selection. It is the survival of the fittest. It is Darwinian evolution. An excel spreadsheet are subpar to your intuition. Because your intuition is Darwinian.
It’s taught us you how to live and survive over millions of years. How can the frontal cortex that just evolved over the past hundreds of years compete with intuition that evolved over millions of years?
Go with your gut. When an investor backed me in three minutes, they trusted their darwinian intuition. We all have built up certain skills in the early days of humanity fighting for survival. Some people still fight in those rudimentary ways. If they get attacked, they attack back. If they get bit they bite back.
I don’t see that as a place in the modern world where we have evolved over the millennium. I think it’s more about you go your way, and I go my way.
Be bold, be brave, be brash, but by all means be benevolent. How big do you think K2 can 50 P
The vision for the first fund was US$10mil, and I have obviously gone 180 times over that.
So this is much bigger than I initially anticipated. I never looked at this as building a large asset base but rather an opportunity to forge new relationships and pathways in the tech ecosystem.
I think there is great room for growth in this space, and I don’t see why K2 can’t be a billion dollar blue chip VC firm.
Which part of tech do you think is currently being ignored that has more upside potential?
Deep tech, artificial intelligence, big data analytics, high intelligence robotics, medical tech, health and food technology.
Deep tech... I would be looking into smart algorithms in applications and artificial intelligence programs.
I am keen on very forward looking technology, not just making an app to book a car or food delivery.
Very sophisticated stuff. Think sci-fi. Food tech and health tech is going to be a passion project and also an area of focus. ERICSENZ Capital Pte Ltd is K2 Global’s regional strategic partner. Together they have launched the Singapore domiciled fund Ericsenz-K2 Global Unicorn Fund.
Ericsenz is licensed by the Monetary Authority of Singapore to do private equity and venture capital focusing on the new economy, and at the same time with a vision to be the Sequoia of Asia, with a twist.
Anthony Siau ( pic) is currently the chief executive officer and executive director of Ericsenz Capital Pte Ltd. Siau was priviously CEO of RHB Asset Management Pte Ltd in Singapore. He was also the Asia Pacific regional head of institutional business covering central banks, government agencies, sovereign wealth funds, institutions, GLCs, corporate and SMEs. Siau has more than 19 years of regional experience primarily in corporate advisory, investment and strategy consultancy. He is also a regular speaker in many events and conferences regionally.
Below are some of Siau’s views:
What does Ericsenz Capital offer beyond capital?
Long-term value appreciation comes from the early identification of potential growth and the possibility of a catalyst on the horizon that will impact the company or industry sector directly. Leveraging on 100 years of collective experience, Ericsenz Capital has deep knowledge of a particular industry segment which enables us to uncover these change elements prior to general market knowledge and buy in (or sell off) specific companies that will benefit (or suffer) from the action to come.
For investors’, they are able to leverage our expertise to spot and participate in investment opportunities.
We are able to assist and drive our investee companies through their transformational change. We believe in collaborative participation by taking an active role in strategic planning with the management team.
In some cases, we acquire controlling interests or minority positions with influence where we can best utilise our expertise. We also provide in-house operational resource to participate at a deeper level alongside with the management team.
What is special about Ericsenz Capital compared with other private equity companies?
Asia is still a highly relationship-driven region which is built on years of networking and busi- ness alliance. With Ericsenz Capital’s network of valuable commercial, strategic, investment, media, and government partners in Asia including Asean, Greater China and Middle East, the opportunity to bridge the gap between the investors with investments have never been greater.
Without a doubt, analysis of the environment and sourcing opportunities are important steps to seek the best investments available. However, there is more than just the technical and fundamental aspects.
You need access to those right investments. We will be creating multiple innovative products to create high value add and compelling investment propositions for investors in this region.
So besides venturing with K2 Global in the tech space, we will be launching products related to oil and gas, infrastructure, healthcare and consumer sectors.
Typically how does Ericsenz Capital exit strategy look like?
Four of the most common private equity (PE) exit strategies are trade sale, initial public offering, secondary buyout and leveraged recapitalization. Despite these common strategies, Ericsenz Capital’s exit strategy is typically through the secondary PE market.
The secondary PE market is the space wherein buyers can access PE limited partnership positions beyond the initial investment period, and sellers can access liquidity. This was once considered a reaction to distress on the sellers’ part, but attitudes have changed.
Since secondary market activity can be stimulated either by a desire to lock in gains or by a need to unload distressed shares, the size of this market has increased and stimulated by the increasing sophistication of both buyers and sellers
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